A road accident may result in damage to or destruction of a vehicle, other property losses and, in some cases, injury or loss of life.
After an accident, it is important not only to record the circumstances properly but also to determine who is responsible for compensating the loss: the injured person’s own insurer, the insurer of the person responsible for the accident, the Motor (Transport) Insurance Bureau of Ukraine (MTSBU), or the at-fault person directly.
The applicable compensation procedure depends on the circumstances of the accident, the existence of valid compulsory motor liability insurance, the nature of the damage and whether the insurance or statutory compensation is sufficient to cover the loss in full.
Who compensates the damage after a road accident?
Where the civil liability of the participants is insured, compensation is provided in accordance with the rules governing compulsory motor third-party liability insurance in Ukraine.
Depending on the circumstances, the injured person may claim from their own insurer under the direct settlement procedure, from the insurer of the person responsible for the accident, or from the MTSBU where the law provides for a statutory compensation payment.
If the insurance or MTSBU payment does not fully cover the damage, the remaining amount may, where there are sufficient legal grounds, be recovered directly from the person responsible for the accident.
It is therefore important to determine from the outset which compensation mechanism applies and which person or organisation is legally responsible for each part of the loss.
Direct settlement of a motor insurance claim
Direct settlement allows an injured person, in cases provided by law, to seek compensation from the insurance company with which their own civil liability is insured.
This mechanism may, in particular, apply to an accident involving two vehicles where damage has been caused to the injured person’s vehicle and the other statutory conditions for direct settlement are satisfied.
The injured person submits the required documents to their own insurer, which handles the claim. Any subsequent settlement between the insurers takes place without requiring the injured person to deal directly with the other driver’s insurance company.
If the conditions for direct settlement are not met, compensation is handled under another procedure provided by law.
When should a claim be made to the MTSBU?
In certain cases prescribed by law, compensation is paid by the Motor (Transport) Insurance Bureau of Ukraine in the form of a statutory compensation payment.
For example, a claim to the MTSBU may be relevant where the civil liability of the person responsible for the accident was not insured.
The MTSBU also performs guarantee functions in certain cases where an insurer is unable to fulfil its obligations under compulsory motor liability insurance.
The absence of a valid insurance policy held by the at-fault driver, or difficulties involving their insurer, therefore does not necessarily mean that the injured person loses the right to compensation. It is necessary to determine whether the circumstances fall within one of the statutory grounds for an MTSBU payment.
What should you do after a road accident?
The steps taken immediately after an accident may have a significant impact on the ability to obtain compensation and prove the actual amount of damage.
Depending on the circumstances, it is advisable to:
- properly record the circumstances of the accident and complete the required documentation with the police or by using the European Accident Statement where the relevant conditions are met;
- obtain information about the drivers, vehicles and insurance policies of the persons involved;
- take photographs and video of the accident scene, vehicle positions and damage;
- notify the insurer in accordance with the applicable procedure;
- retain documents confirming expenses and other consequences of the accident;
- allow the insurer or the MTSBU to inspect the damaged property where such an inspection is required as part of the claims process.
Before the necessary inspection has taken place, the vehicle should not be repaired in a way that makes it impossible to establish the nature and extent of the original damage.
If a dispute later arises over the cost of repairs or whether particular damage resulted from the accident, proper initial documentation may become important evidence.
How is the amount of compensation determined?
Insurance and statutory compensation payments are made within the applicable insurance coverage and in accordance with the rules governing compulsory motor liability insurance.
Under the current rules, no deductible is applied under compulsory motor liability insurance. The previous approach of reducing the cost of repairs by applying a coefficient for the physical depreciation of the vehicle is also no longer used when calculating compensation for vehicle damage.
The general objective is to restore the vehicle to the condition it was in before the accident.
Depending on the circumstances, compensation may involve arranging and paying for repair of the vehicle or may be provided in another form permitted by law.
The amount of compensation depends on the nature of the damage, the scope of the necessary repairs, the cost of parts and materials, the circumstances of the accident and the applicable limits of the insurer’s or MTSBU’s liability.
If the vehicle is damaged to such an extent that repair is technically impossible or economically unreasonable, the method of calculating compensation differs from an ordinary repair claim. In such cases, the value of the vehicle before the accident, its condition after the accident and the value of the remaining salvage may be relevant.
When can compensation be recovered directly from the at-fault driver?
The existence of compulsory motor liability insurance does not mean that the insurer must compensate every loss suffered by the injured person in all circumstances.
If the insurance or statutory compensation payment is insufficient to cover the full amount of the damage, it is necessary to assess separately whether the remaining loss can be claimed from the person responsible for the accident.
Article 1194 of the Civil Code of Ukraine provides that a person who has insured their civil liability must, where the insurance payment is insufficient to compensate the damage in full, pay the injured person the difference between the actual amount of the damage and the insurance payment.
Before bringing such a claim, it is therefore necessary to determine the actual amount of the damage, the amount payable by the insurer or MTSBU, the amount of compensation already received and the remaining sum that may legally be recovered from the at-fault person.
A disagreement with the amount offered by an insurer does not automatically mean that the difference must be paid by the at-fault driver. Both the amount of the damage and the legal basis for additional liability must be properly established.
What should you do in a dispute with an insurer or the MTSBU?
A dispute may arise not only because compensation has been refused entirely, but also because the amount has been underestimated, particular damage has not been recognised as resulting from the accident, the parties disagree over repair costs, certain expenses have not been taken into account, or the claim process has been delayed.
In such circumstances, the insurer’s or MTSBU’s reasons, the insurance claim file and the compensation calculation should be reviewed.
The nature and amount of the damage may be supported by the insurance claim materials, the vehicle inspection report, photographs and video, repair workshop documents, evidence of completed repairs, a valuation report, an expert opinion and other appropriate evidence.
Where there is a substantial difference between the injured person’s assessment of repair costs and the insurer’s calculation, it may be appropriate to review the insurance assessment and obtain an independent valuation or expert opinion.
The next step is to determine the appropriate legal remedy and the correct party against whom the claim should be brought. Depending on the circumstances, this may be the insurance company, the MTSBU, the person responsible for the accident, or more than one party in respect of different parts of the loss.
Legal assistance with road accident compensation
If a dispute arises with an insurance company or the MTSBU after a road accident, the compensation does not cover the full amount of the loss, or part of the damage needs to be recovered directly from the at-fault person, Grandliga can review the accident materials and insurance claim documents, assess the loss calculation, determine the appropriate party against whom the claim should be brought, prepare the necessary documents and represent your interests in pre-litigation negotiations and court proceedings. Learn more about assistance from a road accident lawyer.
