News

07.07.2011, Kiev, Ukraine - In connection with the dissemination of information about the possible increase in the cost of car insurance due to the cancellation of compulsory technical inspection of cars, PZU Ukraine announces that it will not increase the rates on car insurance.

"It is rather unclear for us why the cancelation of compulsory inspection of passenger cars must somehow affect car insurance rates," - commented Vasyl Duzhak, Director of the Organization and Development of Sales Department of PZU Ukraine IC. - " There are more important factors forming the cost of insurance such as, for example, driving experience and driver's age other than the presence or absence of a certificate issued every 2 years."

According to statistics of PZU Ukraine car malfunction is nearly the last in the list of causes of road accidents. In 2010 less than 1% of injured car owners had problems with their cars technical state. Therefore, “we believe that the abolition of compulsory technical inspection will not affect the accident rate on roads – said Oleh Kompaniets, Director of the Claims Settlement Department of PZU Ukraine. - The system of compulsory inspection by the Ministry of Internal Affairs did not provide assurance that the vehicle is in good technical condition, moreover MIA authorities have never been responsible for the further condition of the vehicle. Every driver should keep track of his car it is enshrined in the Driving Regulations and remains unchanged. Therefore, during the completion of an agreement of vehicle insurance our Company has never required from the insured a valid certificate of passing inspection”.

The cancellation of the compulsory inspection will also not affect insurance indemnity payments. Despite the fact that there have always been some restrictions on payments for defective cars they are not associated with the mandatory inspection. "Any decision on an insurance case is always taken not on the basis of certificate of inspection but after trace evidence expertise only which provides a report on the causes of road accidents", - said Oleh Kompaniets. "Some critical failure may occur after the technical inspection, you know. Therefore, if the expertise shows that the accident happened not due to a faulty car, a certificate of compulsory inspection is not required from the driver. But our Company will never pay the loss expenses that occurred as a result of faulty operation of a vehicle. This is enshrined in the insurance agreement and we are not going to make any changes to this document "- he said.

Reference

PZU Ukraine Insurance Group includes two insurance companies: PZU Ukraine IC and PZU Ukraine Life Insurance IC, both of which providing a wide range of insurance services in Ukraine since 1993. The Ukrainian insurance companies are part of PZU - the largest insurance group in Poland with more than 200 years of experience. According to the Standard & Poor's rating PZU Group has the highest rate of financial standing - "A" (with stable outlook). PZU’s net income for 2010 was USD 1 billion.