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Direct settlement under Autocivilka will become mandatory for all insurers

Direct settlement under Autocivilka will become mandatory for all insurers

13.03.2017

1964

The effectiveness of direct settlement directly depends on whether insurers are ready to meet customers and provide them with new opportunities.

The first months of the implementation of direct settlement in Ukraine have shown the advantages of the system and confirmed the need to extend this settlement procedure to all insurance companies without exception.

Therefore, at the upcoming General Meeting of MTIBU Associated Members, which will be held on April 12 in Kyiv, the issue of including in the Bureau's Charter a rule on the mandatory nature of direct settlement for all insurers operating in the Motor Insurance market will be raised.

— «More than a thousand clients were able to evaluate the advantages of direct settlement and the quality of service provided by the insurer with whom the client himself concluded a Motor Insurance contract», — stated MTIBU Director General Volodymyr Shevchenko. — «The system can work more effectively when all companies join the direct settlement procedure, when each driver will have the opportunity to settle an insurance claim in the insurance company he trusts, and all insurers will compete on the basis of the quality of settlement».

The direct settlement procedure is becoming more liberal. In particular, the Direct Settlement Council adopted amendments to the Regulation on Direct Settlement, introducing the function of an arbitrator in disputes between insurers.

Yes, each of the insurers is appointed to act as an arbitrator in disputes arising between insurers for a period of one month. The order of arbitration is determined by drawing lots.

If it is impossible to settle the dispute within the framework of arbitration, insurers retain the option of going to court.

The conditions for the procedure for conducting an examination to assess the amount of damage caused as a result of an accident have also been changed. Thus, the assessment can be carried out by both an independent appraiser and the insurer's own emergency commissioner.

The insurer-adjuster notifies the insurer, which is responsible for compensation for damages, in advance of the assessment. If such an insurer did not send its specialist to participate in the inspection of a car damaged in an accident, the inspection is carried out in his absence.

As Forinsurer reported, direct settlement under the Autocivilka started in test mode in December 2016, and began to operate in a voluntary mode. The mechanism will become mandatory after the adoption of legislative amendments provided for by draft laws No. 3551 and No. 3670, which are under consideration in the Verkhovna Rada.

The Antimonopoly Committee gave permission for concerted actions in the form of the conclusion of an agreement on direct settlement of losses by MTIBU and insurers-members of the Bureau on October 27, limiting its validity to two years.

This decision of the AMCU was made after conducting a thorough study of the impact of concerted actions on the market of services for Motor Vehicles in accordance with the legislation on the protection of economic competition and taking into account information on the positive effect of the implementation of the voluntary direct settlement system.

How is the settlement of an insured event within the framework of the agreement?

  1. The victim of a road accident contacts his insurer or the insurer of the at fault party. The insurance company settles the insured event and compensates the client.
  2. Once a month, a register of counterclaims is formed between insurers that have compensated the insurers of the guilty parties. Compensation of costs between insurers will take place through the settlement and clearing system at the MTIBU. Insurers' funds are credited to special accounts at UkrSibbank, which was selected as the authorized bank.

Today, 18 insurers participate in the direct settlement project: AXA Insurance, Arsenal Insurance, ASKO-Donbass Pivnichny, PZU Ukraine, VUSO, ASKA, Oranta, PROSTO-insurance, UNIQA, Providna, INGO Ukraine, Universal, International Insurance Company, Kraina, KREDO, Colonnade Ukraine, European Insurance Alliance and Brokbusiness.

The MTSBU hoped that over time all insurers operating in the Autocivilka market would join the Agreement and every accident victim would have the opportunity to use the direct settlement mechanism, but this did not happen. Therefore, about the "obligation" This mechanism will be discussed and voted on at the General Meeting in April.

Source: Forinsurer

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