MPs are drafting a bill on compensation for cars destroyed during hostilities
Another draft law on compensation for destroyed cars as a result of hostilities has been registered in parliament.
On April 3, 2024, the Verkhovna Rada of Ukraine registered Draft Law No. 11147 “On Compensation for Damage and Destruction of Motor Vehicles as a Result of Hostilities, Terrorist Acts, and Sabotage Caused by the Military Aggression of the Russian Federation against Ukraine.”
“The draft law is aimed at regulating the issue of compensation for damaged or destroyed vehicles as a result of the armed aggression of the Russian Federation against Ukraine,” the explanatory note to the draft law says.
The Draft Law proposes to introduce compensation for damaged and destroyed motor vehicles to individuals/legal entities and their heirs/assignees. It defines the method of obtaining compensation, regulates the mechanism for submitting and reviewing applications for such compensation, and determines the sources of funding for such compensation.
A special commission will decide whether compensation for the damaged car will be provided. She will need to provide a list of supporting documents. The application can be submitted through Diia, a notary, or an ASC. If a citizen proves the authenticity of the loss of a car due to hostilities, he or she will be paid compensation in cash. The amount will be calculated in accordance with national standards, methodologies, and other regulations establishing mechanisms for the valuation of motor vehicles. After the owner receives compensation, he or she ceases to own the car.
The MPs hope to receive the funds for compensation from future reparations from the Russian Federation. Therefore, the former car owner who will receive compensation will sign “an agreement on the assignment to the state/territorial community of the right to claim against the Russian Federation for compensation for damaged/destroyed motor vehicles caused by hostilities, terrorist acts, sabotage caused by the armed aggression of the Russian Federation against Ukraine, in the amount of compensation received in accordance with the procedure established by the Cabinet of Ministers of Ukraine.”
However, it is highly doubtful whether this draft law will come into force, as the Ukrainian budget does not currently have the necessary funds for compensation of this kind. In addition, a similar bill was already registered in February 2024.
