Update of MTPL Insurance Payments in 2025: What Has Changed for Drivers

A road traffic accident (RTA) is a situation that any driver in Ukraine may face, regardless of experience or caution. This is why the issue of insurance compensation under the motor third-party liability policy (MTPL) remains one of the most relevant for road users. In 2025, the system for handling RTAs and obtaining insurance payments underwent significant changes affecting both the amount of compensation and the procedure for victims. Prompt action, taking into account the new legislative details, and proper documentation are the key to quickly receiving full compensation without delays, minimizing costs, and avoiding court disputes.

Insurance payment: what changed in 2025
Starting from January 1, 2025, new legislation on compulsory motor third-party liability insurance (MTPL) has been in effect in Ukraine.

Key changes include:

1. Increased limits for insurance payments:
   For property damage — up to UAH 250,000 per victim (previously UAH 160,000);
   For life and health damage — up to UAH 500,000 per victim (previously UAH 320,000).
   The next increase is expected: after martial law ends, the limits will rise to UAH 2 million for property damage and UAH 1 million for life damage.
2. Abolition of depreciation deduction: compensation must cover the actual repair costs to restore the car to its pre-accident condition.
3. Direct settlement of losses: since January 2025, the victim may contact their own insurer for compensation, even if the at-fault driver is uninsured or has a fake policy.
4. The European accident statement (europrotocol) allows settlement without police involvement and without amount restrictions, provided certain conditions are met (both cars are insured, no injuries, no more than two vehicles involved, drivers are sober).

Procedure for obtaining insurance compensation

1. Recording the accident and notifying the insurer
   Fill out a europrotocol (if no injuries, both cars insured, losses within limits, drivers sober) or call the police for more complex cases.
   Notify your insurer within 1–3 days (exact deadlines specified in the contract).
   Submit an application either in paper or electronic form (via website or app).
2. Vehicle inspection and document preparation
   Provide the vehicle for inspection by the insurer’s expert (usually within 2–5 business days).
   Prepare a standard package: claim form, copy of the policy, ID, tax code, vehicle documents, accident certificate/europrotocol, accident sketch, photos, police report (if issued).
3. Damage assessment and payment calculation
   The insurer’s expert determines the amount of loss according to updated methods (without depreciation).
   After approval, a decision is made whether to pay or cover repairs.
4. Receiving payment and/or organizing repairs
   Compensation may be received in cash, transferred to the victim’s or repair shop’s account, or provided as an arranged repair with an authorized dealer.
   Payment deadlines: no more than 60 days (up to 90 in exceptional cases).

Special features of direct settlement and guaranteed payments
From 2025, direct settlement applies to all cases of vehicle-only damage. Even if the at-fault driver is uninsured or the policy is invalid, compensation is guaranteed. If the insurer goes bankrupt, the MTSBU fund ensures payment within 90 days.

Tips and common mistakes

• Always check policy validity online at the scene.
• Europrotocol is valid only without injuries and with mutual agreement on fault.
• Do not delay notifying your insurer or providing the car.
• Keep copies of all documents and expert reports.
• Ensure documents are filled out correctly to avoid refusal.

What MTPL does not cover

• The at-fault driver’s own vehicle damage;
• Accidents caused under the influence of alcohol or without a license;
• Intentional damage or exclusions listed in the contract.

Conclusion
Ukraine’s 2025 legislation made insurance compensation more transparent, faster, and beneficial for victims of RTAs. The key is to act promptly, document every step, and ensure you have a valid MTPL policy. Direct settlement and higher limits guarantee compensation, regardless of the at-fault driver’s actions.

Author: Oleksandr Nakonechnyi – attorney, head of corporate and commercial law practice at the Law Firm “WINNER”.