If the situation in the Ukrainian economy does not change and taking into account the projected increase in payment on compulsory insurance of civil liability of motor vehicle owners (OSAGO) policies by 15% by the end of this year, the average OSAGO premium could be increased by 5% for vehicles registered in large cities, Director of Risk Institute Yuriy Ivanko has told Interfax-Ukraine.
“We have provided several options for the operation of the (OSAGO) market for coming years to the MTIBU (Motor (Transport) Insurance Bureau of Ukraine). The regulator is to decide what to choose. We do not see preconditions for tariff growth, apart from the loss-making regions (largest cities). The prices could be slightly increased for them by 5%. The tariffs would not significantly change or remain the same, but payments would grow by at least 15% compared to 2015,” he said.
He also said that if the country’s economy grows and purchase of vehicles grows too, the payment could grow by 15-25%.
The option for the market in the current situation foresees the retaining of tariffs for vehicles registered in small towns. The payment for vehicles made before 2000 (almost the half of vehicles in the country) could be reduced by 10%.
Average cost of OSAGO policies for vehicles with engines of up to 1,600 cubic centimeters registered in Kyiv could grow by 6.8%, that for engines from 1,601 to 2,000 cubic centimeters – by 14.3% and 2,001-,3000 cubic centimeters – by 18.5%.
It is planned to change the K2 coefficient that defines the cost of insurance depending on the place of registration of vehicles.
The tariff would be increased for vehicles registered in Kyiv’s satellite towns: Boryspil, Boyarka, Brovary, Bucha, Vasylkiv, Vyshgorod, Vyshneve, Irpen and Sofiyivska Borschahivka. However, it will be 30% less than in Kyiv.
Changes could affect Lviv, and the cost of OSAGO policies for the city would be equaled to Odesa and Kharkiv.
It has been proposed to set coefficients for electric cars based on the engine power capacity.
