New “Rules and Regulations for Mandatory Civil Aviation Insurance” (adopted by the Resolution of Cabinet of Ministers of Ukraine No.676 on 06.09.2017) entered into force on 20 December 2017. The new rules replace regulations that have governed aviation insurance in Ukraine since 2002. The new rules aim to harmonise Ukrainian aviation insurance market practices with the provisions of the Air Code of Ukraine and the Convention for the Unification of Certain Rules for International Carriage by Air (the Montreal Convention).

Changes brought by the new rules include the increase in the types of mandatory aviation insurance from 5 to 11, including the introduction of third-party liability insurance for persons on-board without a ticket (such as parachutists and audit inspectors). Third-party liability insurance for general aviation operators is singled out in a separate type of insurance, with limits denominated in “Special Drawing Rights” instead of Ukrainian hryvnia.

Under the new rules, the obligation to obtain third-party liability insurance now extends to aircraft design, manufacturing and maintenance organisations with the right to conduct test flights; to airport operators and ground handling providers; and to air navigation service providers. Crew and other in-flight personnel insurance coverage have been expanded to cover positioning flights.

Other important changes include an updated glossary of definitions and a revised list of documents required by insurers in case of an insured event. Insurers have been granted the right to request information from law enforcement authorities, banks, medical and other institutions in relation to an occurrence that may be recognised as an “insured event”. Accident investigations shall not exceed 30 days, starting from the date when the insurance claim accompanied by all necessary documents is submitted to the insurer, with a possible extension for another 60 days. This rather broad definition is clearly advantageous for insurance companies. Reimbursement payments are be made within 10 business days after the signing of the official survey.