Ліга страхових організацій України

League of Insurance Organizations of Ukraine sent a response to the Antimonopoly Committee of Ukraine on the request of the antitrust committee survey of concerted practices in the insurance market.

At the request of the Antimonopoly Committee of Ukraine began the proceedings on concerted action in the form of conclusion of the Motor (Transport) Insurance Bureau of Ukraine and insurers member MTIBU Agreement on direct claims handling. Agreement provides direct claims settlement that meet certain criteria, including: compulsory insurance of civil liability of vehicle owners – members of the accident and the condition that both sides insurers participating accidents are full members of the Agreement on direct claims handling.

In the letter of reply LIOU notes that representatives of the companies – members of the League of Insurance Organizations of Ukraine took an active part in the development of methodology and documentation system of direct settlement of losses in the modeling of the system of direct claims settlement in Ukraine, studied and adapted the relevant international experience.

The proposed system of direct claims settlement provides that it will pay compensation to the victim and the insurance company where the victim purchased insurance, insurance company and not the culprit, as is the case today. In the proposed system of direct settlement of losses consumer will be able to assess the quality of service a particular insurance company, compare service levels with other insurers and make a conscious choice, given that this is the insurance company in case of an accident will provide compensation.

The new approach significantly improves the consumer’s position in relations insurer-insured, because the consumer has the opportunity to choose and control the level of service from the date of purchase of the policy until the damages.

Thus, according to LIOU, the introduction of direct settlement of losses will encourage insurance companies to raise the level of provided services, accelerate payments and contribute to better treatment to the client, and does not lead to a restriction of competition on the market of civil liability of owners of vehicles, and on the contrary, creates the conditions for high-quality competition.