HOW THE THIRD PARTY LIABILITY INSURANCE AGREEMENT WORKS FROM 01.01.2025?

Author: Vitaly Korotun 2025-01-03

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Direct settlement of losses is a system of compensation for damages caused by road accidents, in which the victim can receive an insurance payment for damage to the vehicle from his insurer (whom he chose and insured his civil liability), and not from the insurance company of the culprit, as it follows the normal settlement procedure. In the event of an accident that occurred with the participation of only two insured vehicles (from 2025, with the participation of only two vehicles, of which the vehicle of the injured person is covered by a policy concluded after 01.01.2025), and in which the injured person was harmed exclusively in the form of damage or physical destruction of such a vehicle, the injured person has the right to direct settlement of the insured event. 'Direct settlement of an insurance event involves the fulfillment by the insurer of the injured person of the rights and obligations of the insurer of the responsible person as defined by the Law regarding the consideration of the application for insurance payment, making a decision based on the results of its consideration, and making the insurance payment in the event of a corresponding decision' (norm of the Law). In practice, this means that your insurance company will settle the insurance case and you will not have to contact the insurance company of the culprit. The Voluntary Direct Loss Settlement System has been operating since 2016, but in a limited form. This service is provided by a limited number of insurance companies that have signed a joint agreement on direct settlement of losses. The list of insurers - participants of the agreement can be found on the main page of the official website of the MTSUBU. According to the new Law, as of January 1, 2025, direct settlement becomes mandatory for all insurers insuring Avtocivilka. Direct settlement is also possible if the culprit does not have a policy. However, in 2025, Autocivilka policies issued in 2024 will still be valid. According to them, it is necessary to check whether the insurance company is in the system of voluntary direct settlement. This creates a transition period throughout 2025 when direct settlement may not always be available with these policies.