The payment of insurance compensation is not a matter of the insurance company’s ‘goodwill’, but rather its obligation under the contract and by law. Relationships in the insurance sector are governed by the Law of Ukraine ‘On Insurance’ No. 1909-IX, whilst payments under motor third-party liability insurance are governed by the new Law ‘On Compulsory Insurance of Civil Liability of Owners of Land Vehicles’ No. 3720-IX. The latter has significantly changed the rules: from 2025, direct settlement of claims will become mandatory for all MTPL insurers, so a claimant suffering only property damage will apply for compensation from their own insurer, rather than the at-fault party’s insurer. The timeframes have also changed: a decision on payment must be made within 60 days, and the payment itself must be made within a few days of the decision being taken.
Despite this, refusals and the underpayment of claims remain widespread. The insurer ‘sees no grounds’ for payment, cites late submission of documents, disputes who was at fault, underestimates the cost of repairs, deducts for wear and tear (even though this is prohibited under current MTPL rules), or simply remains silent beyond the prescribed time limits. Comprehensive motor insurance (CASCO) has its own grounds for refusal: ‘improper storage’, ‘breach of contract’, ‘failure to notify in a timely manner’. For the most part, these are not final decisions, but the insurer’s negotiating position, which can and should be challenged.
We identify the true reason for the refusal or underpayment, prepare an independent valuation and a claim; and if the insurer fails to respond, we lodge a complaint with the National Bank (which supervises the insurance market) and recover compensation through the courts, together with late payment penalties.
+38 095 554-54-24 — advice on insurance compensation payments.
Why does the insurer refuse or underpay a claim?
The most common grounds we deal with:
- ‘missed deadlines’ for making a claim or submitting documents — often disputed or due to valid reasons;
- doubts regarding the circumstances of the road traffic accident or the determination of who was at fault;
- an underestimated repair cost estimate by the insurer’s assessor;
- deduction for wear and tear of parts, which is not permitted under current MTPL rules;
- in comprehensive insurance (CASCO) — ‘breach of contract terms’, exclusions from insurance cover;
- delays: the insurer fails to make a decision within the prescribed time limit.
What the new MTPL rules offer and how to make use of them
Mandatory direct settlement makes life easier for the claimant: for property damage, you can contact your own insurer, with whom it is easier to communicate. The insurer is also obliged to suggest options for repair centres. However, simplifying the procedure has not eliminated disputes over the amount: it is precisely at the calculation stage that insurers most often underestimate the payout. Therefore, the key is not to agree to the first amount offered without an independent assessment. If the actual losses exceed the insurer’s liability limit, the difference will have to be recovered from the party at fault — this is a separate process, described on the page compensation for damage in road traffic accidents</ a>, whilst the exact amount of the damages is confirmed by an independent damage assessment.
When do you need a solicitor, and when don’t you?
If the insurer has accepted the claim and paid out an amount sufficient to cover the repairs, there is no point in arguing – and we’ll be honest about that. You need a lawyer if the insurer has refused the claim, underestimated the payout, deducted depreciation, is dragging its feet on deadlines or is disputing who was at fault, as well as in cases involving comprehensive motor insurance (CASCO) with complex grounds for refusal or where a significant sum is at stake. In such cases, a well-drafted claim supported by an independent valuation often resolves the matter before it reaches court — it is cheaper for the insurer to pay the difference than to lose the case and face penalties and legal costs.
How we resolve insurance disputes
- we analyse the contract, the insurance terms and conditions, and the written grounds for refusal;
- we arrange an independent valuation if the payout has been underestimated;
- we prepare a well-founded claim against the insurer, including a calculation of the additional payment due;
- in the event of a refusal or silence, we lodge a complaint with the National Bank and prepare a claim;
- in court, we recover compensation together with penalty interest for late payment;
- where necessary, we recover the amount exceeding the limit from the insurer on behalf of the party at fault for the road traffic accident.
What are the risks for someone acting without a solicitor?
The first risk is agreeing to an underpaid settlement by signing a document waiving all claims, thereby forfeiting the right to additional compensation. The second is accepting a refusal ‘on the grounds of a missed deadline’ as final, even though the deadline can be reinstated or appealed. The third is failing to commission an independent valuation and having no basis on which to challenge the insurer’s calculation. The fourth is missing the limitation period: for the insurer, this is calculated from the date of refusal to pay, and any delay may result in the loss of the right to claim. Each of these mistakes costs real money.
Cost of services (insurance compensation payment)
| Service | Price |
|---|---|
| Consultation including analysis of the insurer’s refusal | from 1,500 UAH |
| Legal opinion and calculation of additional payment | from 5,000 UAH |
| Claim against the insurer / complaint to the NBU | from 5,000 UAH |
| Preparation of a statement of claim | from 5,000 UAH |
| Legal representation in court | from 10,000 UAH |
| Comprehensive ‘turnkey’ service | from 25,000 UAH |
An independent valuation and court fees (1 per cent of the claim value) are payable separately. All matters following an accident are handled by our traffic accident solicitor</ a>; if there are casualties in the road traffic accident, a lawyer specialising in Article 286 of the Criminal Code works in parallel.
Questions and answers (payment of insurance compensation)
Which insurer should you contact following a road traffic accident in 2025?
If there is only property damage, contact your own insurer: from 2025, direct settlement has become mandatory for all Motor Third Party Liability (MTPL) insurers. If there are injured parties, the standard procedure applies.
Within what timeframe must the insurer pay compensation?
Under the new Law No. 3720-IX, a decision must be made within 60 days, and payment must be made within a few days of the decision being made. Failure to meet these deadlines constitutes grounds for a penalty and an appeal.
The insurer has underestimated the payout. What should I do?
Arrange for an independent valuation and submit a claim with a calculation of the additional payment due. The insurer’s valuer’s calculation is not the final word — the difference is recovered through the claims process or in court.
Can the insurer deduct depreciation of parts?
Under the current Motor Third-Party Liability Insurance rules, depreciation cannot be deducted from the payout. If the insurer does so, you can claim the underpaid amount as an additional payment.
The insurer has refused the claim ‘due to the expiry of the time limit’. Is this lawful?
Not always. The time limit may be extended if there are valid reasons, or the grounds for refusal may be challenged. We assess each case individually.
Where can I lodge a complaint against an insurance company?
The supervisory authority for the insurance market is the National Bank of Ukraine. A complaint to the NBU is an effective means of exerting pressure alongside a claim and legal action.
How does a dispute under comprehensive motor insurance (CASCO) differ from one under compulsory motor third-party liability insurance (OSCPV)?
Comprehensive motor insurance (CASCO) is voluntary insurance, and the grounds for refusal are determined by the contract and the insurance terms and conditions. Therefore, in CASCO disputes, the key factor is an analysis of the contract terms and exclusions.
Can a penalty be charged for late payment?
Yes. A penalty (fine) is charged for late payment of insurance compensation in accordance with the law and the contract — it is collected together with the principal amount.
How long do you have to take legal action against the insurer?
The limitation period for claims against the insurer is calculated from the date of refusal to pay. It is therefore important not to delay after receiving a refusal, so as not to lose the right to claim.
How much do your services cost?
From 1,500 UAH per consultation. The cost of legal representation depends on whether the dispute can be resolved out of court and on the amount of the claim.
Contacting a lawyer specialising in insurance disputes at Svarog
Send us your insurance policy, the road traffic accident documents and the insurer’s written response — we will assess whether the refusal or underpayment is lawful, calculate the additional payment due and take on the dispute with the insurer ourselves. If you need an assessment or to recover the difference from the party at fault, we’ll handle this as part of a single case. This area is handled directly by our traffic accident lawyer.
Telephone: +38 095 554-54-24, +38 096 554-54-25 (Telegram, Viber, WhatsApp). Address: 7 Khoriva Street, Office 2, Kyiv (Podil). Opening hours: Mon–Fri, 9.00–18.00.