11:44 17.08.2015

MTIBU asks authorities to protect it from raiding schemes of influence on bureau's operation

2 min read
MTIBU asks authorities to protect it from raiding schemes of influence on bureau's operation

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) has asked the Ukrainian president, interior minister, prosecutor general and head of the National Anti-Corruption Bureau of Ukraine to urgently take measures to stop illegal actions and raiding schemes of influence on the operation of the bureau, according to a letter of the MTIBU signed by the directors of the leading insurance companies-members of the bureau.

The insurers said that MTIBU was created 21 years ago as a self-regulating organizations which fulfills the functions delegated to the bureau by the state, and the bureau ensures the fulfillment of guarantee functions on coordinating mandatory insurance of motor vehicles owners' civil liability (OSAGO). According to Ukrainian law, MTIBU members created guarantee funds of the bureau and regularly pay fees to the fund.

However, since 2010, the insurers were actually removed from the corporate management of the bureau, which entailed large financial losses and the worsening of the fulfillment of liabilities taken by insurers. The coordination council of the bureau made non-transparent and unjustifiable staff decisions.

Fulfilling the functions of the presidium, the coordination council from February 2013 to May 2014 did not hold a general meeting of bureau members which violated the requirements of Ukrainian law and did not allow insurance companies to influence the situation. From July 2012 to March 2014, a loss of UAH 300 million was caused to the market.

The insurers said that after the Revolution of Dignity the market was waiting for new positive changes.

"After the election of the new parliament, new representatives of the parliament were appointed to the coordination council, and the council continued traditions of its predecessor," the letter said.

In March 2015, the parliamentary committee for the organization of the work of the parliament responded to a request of the MTIBU on the lawfulness of the appointment of representatives from the parliament, and that under Article 85 of the Constitution of Ukraine and the law on the parliamentary committees, the head of the committee does not have the right to appoint its representatives to the coordination council. The clauses of the bureau's regulations, which permit the participation of representatives of the parliament in the coordination council, are not in line with Ukrainian law.

Despite the doubtful lawfulness of the appointed members of the coordination council, some lawmakers continue interfering in the operation of the bureau, and by using their assistants are destabilizing the situation.

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