Insurance Against War Risks: The Cabinet of Ministers Limited the Deadlines for Submitting Applications and Set a Limit of 3 Million UAH

The government has clarified the list of eligible property, updated the application submission procedure and document requirements, and revised the rules for insurance premium compensation.

The Cabinet of Ministers of Ukraine, through Resolution No. 887, has amended the Procedure for providing partial compensation for the cost of business entities' property destroyed or damaged as a result of Russia's armed aggression. The government has also updated the mechanism for compensating insurance premiums under war risk insurance contracts.

Property now eligible for the compensation programme

The government has clarified that compensation applies to property of business entities as defined by specific categories within the Procedure. Compensation issues are separately regulated for:

• Buildings and structures (production, administrative, warehouse, etc.)

• Individual premises within buildings — offices, workshops

•  Production equipment

• Engineering networks and communications

The document also clarifies the concept of "machines," specifically excluding vehicles subject to state registration, such as cars, buses, trailers, semi-trailers, mopeds, as well as tractors, agricultural, road-construction, and other equipment subject to departmental registration.

The government has separately defined "insured property" as property owned by the business entity.

Updated list of documents and compensation rules

The government has also presented a new version of the list of documents on the basis of which the Export Credit Agency will make decisions on compensation payments.

To receive a compensation payment, applicants must submit the following documents:

•  Compensation application

• Documents confirming ownership rights to the property

• Certificate of no tax debt or an extract from the State Tax Service information system on budget settlements

• Photos of damaged or destroyed property (if available)

• Commission or technical inspection report and technical condition report — in cases of damage or destruction of buildings, structures, or individual

  premises

• Documents confirming the fact of damage or destruction of property (DSNS acts, National Police certificates, or extract from the Unified Register of Pre-trial Investigations)

• For production equipment and engineering networks — documents specified in paragraph 19-1 of the Procedure

• Property appraisal report, valuation act, or expert court opinion determining the amount of direct (actual) damage

• Documents confirming the authority of the person who signed the application (if necessary)

• Copies of the passport and taxpayer registration number card of the applicant's signatory

The Agency also reserves the right to independently obtain some of the necessary documents and information from the Register of Damaged and Destroyed Property. This includes documents regarding ownership rights, property photographs, damage confirmation, and other information necessary for decision-making.

A business entity may appeal a decision to pay compensation or a refusal of compensation in court.

Responsibility for the accuracy of information and documents submitted under the programme lies with the applicant. The maximum insurance premium compensation for one business entity will be 3 million UAH per calendar year.

Compensation cannot exceed the probable loss amount stated by the enterprise in its application for programme participation or in its application for including additional property. If the business has already received compensation from third parties, including insurance payments, the compensation amount will be reduced by the amount of such reimbursement.

The enterprise must notify the Agency of receiving other payments within three calendar days.

If, after receiving compensation from the state and other payments, the total amount exceeds the actual loss, the enterprise must return the excess funds. This must be done within 15 calendar days of receiving reimbursement from third parties.

The deadlines for submitting documents have also changed: previously, they were calculated from the date of contract conclusion or insurance payment; now, the application must be submitted within 30 calendar days after the expiration of the insurance contract.

In particular, the Agency may refuse to include a business entity in the compensation programme or return the paid contribution if the property is located in high-risk areas, is not owned by the enterprise, or does not correspond to the categories of property defined by the Procedure.

In the case of such refusal, the Agency must return the paid contribution to the entrepreneur within 10 working days from the date of sending the relevant written notification. The Agency's decision to pay or refuse compensation can be appealed by the business entity in court. The entrepreneur is responsible for the accuracy of the information stated in the applications and submitted documents.

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