Compensation for MTPL insurance in 2025: how to determine the amount of payment

The 2025 amendments have made CTP more ‘driver-friendly’: limits have increased, the deductible and wear factor have disappeared, and money now goes directly to service stations, which speeds up repairs. Learn how to calculate compensation and receive payment on time

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On 1 January 2025, amendments to Law No. 3720-IX on compulsory motor third party liability insurance came into force. They increased the limits of payments, cancelled the deductible and introduced a clearer procedure for calculating compensation. Here's what the compensation amount consists of and how to check it.

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Basic limits and deductible

The insurer cannot exceed the limits, even if the actual damage is higher. The difference can be recovered directly from the culprit of the accident through the court.

Calculation of damage to the vehicle

As you know, the coefficient of physical wear and tear of parts is no longer applied: the costs are calculated at the cost of new spare parts.

By default, the payment is made directly to the account of a certified service station chosen by the victim from the insurer's list. However, if the driver prefers to take the money in hand, the amount is reduced by VAT; the tax can be refunded after the repair by providing invoices.

Also, MTPL covers towing services to the nearest repair station.

However, if it is economically unprofitable to restore the car, the compensation = the market value of the car before the accident - the residual value after the accident, determined by an expert or online auction.

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Compensation for damage to life and health

▪️ Medical expenses → Actual bills + further rehabilitation

▪️ Disability:

• Employees - average salary

• Self-employed - difference in income

• Unemployed - ≥ 1 minimum wage

▪️ Invalidity:

• Group I - 36 minimum wages,

• Group II - 18 minimum wages,

• Group III - 12 minimum wages,

• Disabled child - 36 minimum wages.

▪️ Non-pecuniary damage → 10% of the amount paid for treatment/disability

▪️ Death of the victim:

• Dependants - ≥ 36 minimum wages

• Non-pecuniary damage to the family - 25 minimum wages

• Funeral/monument - up to 12 minimum wages

Terms of settlement

The insurance company is obliged to make a decision and transfer the money within 60 calendar days from the date of receipt of the full package of documents.

In case of complex examinations, the period may be extended, but not more than 90 days.

It is worth noting that a motor third party liability insurance policy is mandatory for all vehicles registered in Ukraine. It takes a few minutes to apply for this insurance on the Visit Ukraine portal.

When can I not be paid compensation under MTPL?

Compensation for damage under a motor third party liability insurance policy is not provided in the following cases:

1. To the car and the health of the person responsible for the accident. MTPL covers only third parties;

2. antiques, jewellery, money, collections. The law excludes such objects from coverage;

3. fighting, riots, terrorist attacks, natural disasters. Risks not related to normal traffic;

4. Intentional accidents. The actions of the victim were intentional;

5. Missing the deadline for filing an application (3 days). Violation of the notification procedure.

At the same time, new restrictions have been added since 2025, namely:

🔻 Accidents during the carriage of dangerous goods;

🔻 Passengers who knowingly travelled in a stolen car;

🔻 Environmental pollution (spillage of fuels and lubricants, chemicals);

🔻 The case when the damage is already covered by a separate contract of the carrier.

It is important to check the terms of the policy! In 2025, both the old (concluded in 2024) and the new model contracts will be in force on the roads, so the settlement rules may differ.

How can I check the amount of compensation paid out by my own insurance?

- Request an inspection report from the insurance company or an independent expert.

- Compare the cost of parts with the service station's price list and make sure that no wear and tear has been applied.

- Check the limit: the total figure should not exceed ₴250,000 (property) or ₴500,000 (health) per victim.

- VAT: if the money is not transferred to a service station, make sure that 20% is deducted from the amount and that you have the right to return it after the repair.

- Deadlines: record the date of filing the claim; after 60 days without payment, you can claim a penalty (0.1% for each day of delay) and apply to the MTIBU or the court.

We remind you! Even during the war, insurance remains mandatory for all vehicles travelling on Ukrainian roads. Find out more about how to insure your car during martial law and whether you can get compensation for a damaged car during the war.

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