The Cabinet of Ministers of Ukraine has decided to improve the mechanism for insuring property against war risks. The changes will take effect and apply to property damaged or destroyed from January 1.
From now on, not only real estate but also production equipment (machine tools, apparatus, instruments, devices, etc.) used in core activities will be eligible for compensation. At the application stage, the requirement to provide a property valuation report has been abolished; entrepreneurs will independently indicate the amount of probable damage in the application.
Also, from now on, the compensation limit (UAH 10 million for property or UAH 1 million for insurance premium compensation) applies to each legal entity separately, rather than to all related parties. It is clearly stated that compensation is provided not only for direct hits by missiles or artillery, but also for shock waves, falling UAVs and debris, as well as for the indirect impact of weapons.
State support, as before, provides for two instruments: direct compensation for losses to enterprises whose property is located in high-risk areas (Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions, excluding the occupied territories) and partial compensation of insurance premiums for businesses in the rest of Ukraine.
“We have eliminated unnecessary bureaucracy at the start: businesses no longer need to spend time and money on property valuation just to submit an application. We have also included production equipment in the coverage and clearly stipulated the possibility of coverage in the event of damage from drones and debris. This will make the mechanism not only more accessible but also legally protected for policyholders,” said Oleksii Sobolev, Minister of Economy, Environment, and Agriculture of Ukraine.
Insurance of property against military risks is part of the Made in Ukraine policy. The programme is administered by the Export Credit Agency (ECA). (Government portal)