How to Get Compensation for Cars and Other Movable Property Damaged During the War
Movable property of Ukrainians – from cars and equipment to furniture – also suffers from the war. But getting compensation for its damage is more difficult than for destroyed housing, because there are no state mechanisms for such compensation yet.
Lawyer Darya Malinnikova and Vyacheslav Chernyakhovsky, General Director of the Insurance Business Association, told “Window of Restoration” what protection options are available and when you can count on compensation.
What is movable property
Movable property is things that are not attached to the ground and can be moved without harming their essence. For example, these are cars, household appliances, equipment, furniture, gadgets. It is such objects that have so far remained outside the attention of state compensation programs, although the damage from shelling can be significant.
Is there compensation for movable property from the state
Currently, Ukraine does not have a separate state mechanism for compensating for damage to destroyed or damaged movable property to both citizens and enterprises.
However, according to lawyer Daria Malinnikova, the absence of mechanisms similar to compensation for destroyed or damaged housing does not mean that there is no need to record the damage. She recommends keeping all evidence – this will come in handy when new opportunities arise.
The International Register of Damages remains a relevant direction, which is filled with applications from Ukrainians. Although there is no real payment mechanism yet, the categories for submitting applications for compensation are constantly updated.
How to record the fact of property damage
For a future appeal to the court or international structures, it is important to collect a full package of evidence. To do this, you should:
- contact the police with a statement, after which law enforcement officers must draw up a report, enter information into the Unified Register of Pre-Trial Investigations and provide an extract from it to the applicant;
- take photos and videos from the scene of the incident, as well as describe each item;
- if there were witnesses, it is worth recording their testimonies and personal data;
- save and provide law enforcement officers with copies of property documents: receipts, checks, technical documentation;
- in the event of a fire, contact the State Emergency Service and obtain a copy of the act stating that the fire occurred as a result of Russian aggression;
- contact the local commission from the local self-government body to record the damage and draw up an act of inspection of damaged or destroyed property;
- if possible, you should contact a forensic expert to determine the exact amount of damage.
“I recommend describing all damaged property – whether it is a car or household items – and adding any documents confirming its existence. Even if there is currently no mechanism for compensation for movable property, it can be introduced – at the state level or through the International Register of Damages. And then your evidence will be decisive,” the lawyer noted.
How does voluntary insurance against war risks work
OSCPV, or as it is also called “autocivil”, covers only losses caused to other road users as a result of an accident. It does not protect the owner’s car from damage caused by war, for example, shelling, explosions or debris. To receive compensation for a car destroyed or damaged during hostilities, you must have a CASCO policy with a separate extension for war risks.
Since mid-2022, Ukrainian insurance companies have begun to introduce insurance against war risks (missile strike, debris, blast wave, etc.). This means the ability to insure not only housing or outbuildings, but also:
- cars;
- household appliances;
- furniture and other movable property.
Such insurance became possible thanks to the internal programs of Ukrainian companies.
However, it is worth remembering that insurance companies compensate for the costs of restoration only to those who have concluded a relevant contract in advance, adding the option of protection against war risks.
How does the distance to the front affect
One of the key factors that insurance companies pay attention to is the geographical location of the insured property. Usually, insurers do not conclude contracts in cases where property (especially real estate or a car) is located closer than 50-60 kilometers to the front line. This is explained by the high level of unpredictability, the frequency of shelling and the possibility of being hit by anti-tank guided missiles. Even if the settlement is liberated and under the control of Ukraine, the insurer may refuse to conclude a contract due to too high risks.
In addition, if, for example, a car was insured in a relatively safe region, and then moved to the frontline zone, where it was damaged, the insurance company may refuse to pay. The policy must specify which territories the insurance coverage extends to. If the trip to the zone of active hostilities is not included in the contract, there will be no compensation.
How much does insurance cost
The cost of insurance depends on the type of movable property, its estimated value, the package of services and additional coverage of war risks. War risks increase the cost of property insurance premiums are approximately 30-50%.
If you have a car worth $10,000, then standard insurance will cost about $500-600 per year. If you add the option to cover war risks, then about $150-200 will be added to the cost of the policy. The total cost is approximately $650-800 per year.
The amount of compensation for a damaged or destroyed car or other movable property directly depends on the amount for which it was insured. It is important to correctly assess its value at the time of concluding the contract. This allows you to avoid situations where the compensation is not enough for restoration.
“Insurance is a kind of donation: you paid 100-200 dollars and, perhaps, nothing will happen to you. And if something happens, you will receive compensation. The main thing is not to underestimate the insured amount so that it is enough for recovery”
said Vyacheslav Chernyakhovsky
Why Ukrainians are still in no hurry to get insurance
According to the general director of the “Insurance Business” association, the culture of insurance is still poorly developed in Ukraine. People often believe that nothing will happen to them, and the cost of insurance is money wasted.
“We have a lot of “optimists” who do not want to pay for insurance. They think that it will not come in handy. But when it does happen, they are left alone with the problem,” – explained the specialist.
This social infantilism, according to the expert, will not change until Ukrainians begin to realize personal responsibility for their own future.
How realistic are the chances of compensation
Although the number of insurances is growing, insurance cases remain rare. According to the general director of the Insurance Business Association, Vyacheslav Chernyakhovsky, on average, only one out of 80-100 insured objects actually comes under fire and requires payment. This is not a lot, but such statistics do not mean that the risks are small. If the contract is drawn up correctly and all the documents are collected, the payment can be received 1-2 months after the event. Currently, companies already have their own statistics of payments for war risks, which are only increasing.