OREANDA-NEWS. July 18, 2012. Oranta’s specialists were invited to participate in the program "Open Studio" on the National Channel of the Ukrainian radio entitled to the topic "Compulsory motor insurance - the realities of Ukrainian and international experience." Alexander Nagorny, a member of the legal committee and Oranta’s representative in the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) shared his expert opinion with the audience. The participants discussed the current issues about the advantages and disadvantages of compulsory insurance, benefits of the policyholders, legislative challenges that this type of insurance is facing, unfair competition in the market and whom the insurers can trust.

In course of the discussion of the main achievements and challenges of the market, Alexander Nagorny, in particular, brought to listeners that during the last seven years after the Act on mandatory insurance of civil liability of owners of vehicles was passed and accepted, the majority of car owners became the CMI policyholders. The society has overall positive perception of this type of insurance, he added.

According to the expert opinion, the main objectives of which are now facing insurers and MTIBU members are:

1) to ensure profitability and further development of the CMI market;

2) to increase the transparency of the market;

3) the effective response to dumping and unfair competition in the CMI market;

4) increase in the solvency and liquidity of the assets of the member insurers of MTIBU;

5) to reduce the risks of default by member insurers of MTIBU, and diligent fulfillment of their obligations;

6) implementation of the Law of Ukraine "On Amendments to Certain Laws of Ukraine concerning the compulsory insurance of civil liability of owners of vehicles", which provides for simplification of compensation for damage to life and health, adopted by the Verkhovna Rada of Ukraine;

7) treatment of the mechanism of direct compensation for damages to persons injured by insurers – CMI policyholders.