Kyiv, March 19 (Interfax-Ukraine) – The adoption of a procedure to monitor the operation of insurance companies by the general meeting of members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) will cut dumping on the market and will increase claim payments, MTIBU President Yuriy Hryshan said at a press conference devoted to the result of 100 days of his work and the operation of the bureau presidium from December 2014 to March 2015.

He said that according to preliminary data, after monitoring the operation of insurers, eight insurers may have problems.

Hryshan said that the new system for monitoring the operation of insurers mainly differs from the current system by making the quality of settling payments and the number of claims as the top priorities.

"It is important for clients to quickly receive payments in claim, and not what assets the company has and how many premiums the company collects," he said.

He said that the MTIBU presidium recommended that the bureau directorate should not update the indicator describing insurance companies on its website by using the Traffic Lights system until a new procedure is passed.

Hryshan said that during 100 days they managed to normalize work on the market and draw up legal changes which will bring the Ukrainian OSAGO market in line with European standards by the middle of 2016.

Among the most important achievements of the MTIBU presidium is the adoption of the requirement of linking reserves, the implementation of which will cut dumping and receiving additional guarantees on future payments. The presidium also agreed amendments to the regulations on centralized funds in part of their fixing and their replenishment on the date when amendments to the law on OSAGO of November 4, 2012 took effect, which made it possible to prevent the withdrawal of companies from the market and to increase payments to clients.

MTIBU Director General Volodymyr Shevchenko added that the centralized fund management mechanism has been created in the bureau, as well as the electronic exchange of resources, and that the anti-corruption program was launched. Only the presidium under the recommendations of the investment committee of MTIBU makes the decision to place bureau funds in Ukrainian banks. The bureau also terminated cooperation with dozens of servicing stations after it was recommended to repair the vehicles of accident participants. The bureau is working on the mechanism for sending payments in claims to payment cards of clients, and a regulatory payment control mechanism has been introduced.