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february 2016 year
february 2016 year
exclusively for Delo

Ukraine Car CASCO Insurance: When Can Insurers Deny Indemnity?

exclusively for Delo

Most probably you ran across wrecked cars carrying a vivid banner which said “Insured by…” more than once. In Ukraine car owners choose to express their indignation in such a creative way after being denied insurance indemnity. While the majority of disappointed Clients fully hold the insurance company accountable for their misfortunes, they would be quite surprised to find out that quite many times they were the ones to blame.  What are themost common mistakes that entail indemnity denial?

Of course, in Ukraine cars often are not repaired at the expense of insurance company since the ball is stuck in the insurer’s court.  Bankruptcy is the most frequent cause. However dishonest insurers making up hundreds of excuses just to delay parting with their money is also not that a rare case.  

Failure to contact the Call – center of the insurance company can serve as a direct ground for indemnity denial.
If you are about to buy a car in Ukraine and are already thinking about insuring in under CASCO agreement, it’s worth keeping in mind that insurer is liable to pay indemnity for insured events only with the Insured having fulfilled his formal obligations under the agreement.  For example, it is imperative to notify the insurer about the accident both in writing and verbally within the specific deadline stipulated by the insurance policy. Failure to contact the Call – center of the insurance company can serve as a direct ground for indemnity denial. That, in fact, is the most popular reason for not being properly indemnified.

The second most popular cause for being left without indemnity is not calling the competent authorities right after the car accident. There are some exceptions to this rule which must be stipulated in the insurance policy, but in the rest of the cases the presence of the police is a must if more than one vehicle is damaged in the accident. Sometimes filling out European Accidents Statements alone can do but not every CASCO insurance policy allows such an option. 

In Ukraine cars often get stolen.  That’s why it is essential that “car theft” risk be paid special attention when purchasing the insurance. If for some reason car keys and registration certificate are left in a car that was stolen, you are most likely looking at being denied insurance indemnity as you must provide both of them along with the spare set of car keys when claiming the indemnity.   

Of anyone willing to buy a car Ukraine’s regulations do not require much. However in order to insure in under CASCO agreement it’s a common practice for an insurance company to examine it before signing the agreement. Some pictures are also usually made for future references regarding the vehicle’s condition at the moment of concluding the insurance agreement.  Absence of examination report can create obstacles to speedy claim settlement.

You are facing guaranteed indemnity denial if you were driving the car being drunk or intoxicated irrespective whether or not you got into an accident within the country or you were driving abroad using Ukraine’s “green card” motor vehicle insurance. Besides, such small parts as windscreen wipers, tires, cover plates; antennas etc. are not covered by insurance policy unless they were damaged together with the significant parts of the vehicle.

Naturally the abovementioned list of indemnity denial grounds is far from being complete as there are dozens of other factors which can entail problematic claim settlement.  This article dwells only on those burning issues which make the Insured blame the insurers the most.  However all it takes to avoid problems is to be attentive disciplined in observing the agreement’s clauses.