Rada increases penalty for absence of OMTPL insurance policy

On September 24 the Verkhovna Rada of Ukraine passed the law increasing the penalty for the absence of an obligatory motor third-party liability (OMTPL) insurance policy from USD 3.5 to USD 87.6-USD 175.3. The law got 386 “yes” votes out of 450 MPs. Alexander Viktorov: The move is an important driver for Ukrainian OMTPL market. In 1H08, Ukrainian insurance companies sold 3,135,011 OMTPL insurance policies (+85.4% yoy) and received USD 121 mln gross premiums written from OMTPL insurance (+88.4% yoy). We estimate the volume of the OMTPL market in terms of gross premiums written at USD 400-500 mln over the next 1-2 years.