Ukrainian Motor TPL Reform: Key Provisions of Law No. 3720-IX for Drivers and Foreign Vehicle Owners

Law of Ukraine No. 3720-IX, enacted on May 21, 2024, fundamentally overhauls the mandatory motor third-party liability insurance framework in line with EU Directive 2009/103/EC.

Principal Reforms:

• Substantial Limit Increases: Phased elevation of statutory compensation limits toward EU standards (reaching equivalent of €1.3 million per person and €6.45 million per event for personal injuries).
• Mandatory Direct Claims Settlement: Policyholders claim restitution directly from their own insurer without pursuing the responsible party's insurance company.
• Depreciation Waiver: Damage settlements are assessed without vehicle depreciation deductions, providing genuine replacement value for replacement parts.
• Expedited Claim Settlement: Insurers must determine claim settlement decisions within 60 calendar days (reduced from 90 days).