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Refusal of Ukrainian insurers from 50% discount on Green Card will lead to higher demand for foreign companies' policies – expert

KYIV. May 4 (Interfax-Ukraine) – Refusal of Ukrainian insurance companies that are full members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) from a 50% discount on short-term Green Card policies will lead to an increase in demand for policies of foreign insurers.

"After the cancellation of the decision on 50% discounts on the Green Card policies, the choice will be made in favor of a foreign policy, which, obviously, will not help support the work of the national market. Now our citizens abroad will simply give their money to foreign insurance companies. According to my estimates, since the beginning of the war, more than a million cars have left the border, so this amount will be significant," Viacheslav Cherniakhovsky, the general director of the Insurance Business association, said.

According to him, in the very first days of the war, the union, together with other market associations, turned to the national Green Card Bureau and insurance associations of all countries that border Ukraine with a request to support Ukrainian car owners, for example, by implementing the Polish version – providing Ukrainian refugees with free border insurance policies.

"Colleagues responded very quickly, offering various options for insurance coverage – either cross-border insurance policies for a symbolic price, like Hungary, free of charge (Denmark, Poland) or compensation for possible damage caused by Ukrainian car owners at the expense of guarantee funds (Germany, the Czech Republic, Latvia). This helped save Ukrainian refugees millions of euros, which were so necessary for settling in Europe," he said.

According to him, now, after two months of the war, some countries are extending benefits, but some states are canceling them. This means that any Ukrainian car located in Europe must be provided with a Ukrainian Green Card policy or a European country’s border insurance policy.