Cars destroyed during the war: is it possible to get compensation?
20 January 16:12
More than a thousand abandoned cars were counted on the streets of Kyiv, most of which were damaged by Russian shelling. According to the head of the KCIA, Timur Tkachenko, they are going to be removed from the streets. But the saddest thing is that while compensation can be received for the restoration of a home after a missile or drone attack, no such payment is provided for a damaged car if it was not insured. The draft law providing for compensation for the loss of a vehicle was not adopted. At the same time, according to the Kyiv School of Economics, 211,700 cars were damaged or destroyed during the two years of the full-scale invasion, and direct losses from the destruction of vehicles amounted to $3.1 billion. Today, these figures have increased significantly.
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Insurance is not for everyone
If the car was not insured, any compensation for damages is now out of the question. Criminal proceedings will be opened under articles on terrorism, violation of the rules of war, etc., because the aggressor must be held responsible. The investigation will be conducted by the SBU. The applicant will be recognized as a victim – that’s all.
“The state will not pay for this lost property. Only an insurance company can pay compensation if they have a hull insurance policy. And only in this case they pay compensation,”
– explains attorney Maxim Studzinsky to Komersant ukrainskyi.
However, CASCO, which guarantees coverage of all risks, including military ones, can only be taken out by car owners not older than 15 years. Insurers offer different services, ranging from a separate surcharge for military risks, but with a guarantee of full compensation for losses, to covering only part of the losses. For example, compensation for damage from the consequences of military operations within 10% of the sum insured, but not more than UAH 300,000. Here, the motorist has to choose according to his or her financial capabilities, because insurance against “arrivals” is not cheap. For example, it will cost UAH 29,000 to insure a 2014 car worth UAH 400,000 against all risks with one of the insurance companies. The other offers “Military” CASCO for a 2014 car worth UAH 400,000 for UAH 12,000 per year, and you will have to pay an additional UAH 5,000 to cover military risks. Only those who have cars older than 15 years will not be envied – they are not even eligible for CASCO.
As lawyers advise, you can file lawsuits against Russia in Ukrainian and international courts – this is a civil proceeding. Or wait for reparations payments, only then there is a slim chance of receiving compensation for a lost or damaged vehicle.
“eRestoration” of cars failed
Nevertheless, the Verkhovna Rada of Ukraine made an attempt to resolve the issue of compensation for a damaged car. In April 2024, draft law No. 11147 was introduced, which defines the legal and organizational framework for the state to provide compensation for damage and destruction of vehicles as a result of hostilities, terrorist acts, and sabotage caused by Russian aggression.
As noted by the author of the bill, MP Volodymyr Krendeyko, the draft law stipulates that individuals and legal entities, their heirs and successors will be able to receive compensation for damaged and destroyed buses, trucks, cars, trailers, and semi-trailers.
The MP proposed an already proven mechanism of action within the framework of the eRestoration program. Owners of damaged or destroyed vehicles submit an application to specially created commissions in local communities. They examine the necessary documents and determine the amount of compensation, which should be set in each case separately, based on the conclusions of an expert assessment. An application for compensation must be submitted to the relevant commissions during the period of martial law and within three years from the date of its termination.
The priority right to receive payments is given to combatants, persons with war-related disabilities, mobilized servicemen, large families, and persons with disabilities of groups I and II.
The draft law also stipulates that the sources of funding for payments for damaged and destroyed vehicles should be the “Fund for the Restoration of Property and Destroyed Infrastructure in connection with the Armed Aggression of the Russian Federation,” international financial assistance, reparations from the Russian Federation or other sources not prohibited by Ukrainian law.
However, this draft law was opposed by the Association of Ukrainian Cities, which believes that the main financial burden will fall on their shoulders, and hinted that this is not a priority issue.
So everything remains as it is – those who have a more or less new car can buy hull insurance and receive compensation, while old cars will have to say goodbye forever.
Author: Alla Dunina