Determining the Amount of Insurance Compensation for the Destruction of a Vehicle after an Accident: Court's Position
The issue of determining the amount of insurance compensation in the event of total destruction of a vehicle often becomes the subject of legal disputes. In a case considered by the Chernivtsi Court of Appeal, it was precisely the incomplete evidence base and disregard of legal requirements that led to the dismissal of the claim even with proven fault of the insured. This was reported by the Chernivtsi Court of Appeal.
In 2024, in Chernivtsi on Vynnychenka Street, a road traffic accident occurred. The driver of the vehicle "Renault Arkana", turning left at an intersection of unequal roads from a secondary road, failed to yield to a "VAZ 21083" car moving on the main road, resulting in a collision.
The second participant's car sustained damage incompatible with economically feasible repair, the restoration cost of which, according to the expert's conclusion, amounted to UAH 80,614, while the market value of the car before the accident was UAH 37,858.
The civil liability of the "Renault Arkana" driver was insured.
The owner of the damaged vehicle applied to the insurance company PJSC "USC 'Kniazha Vienna Insurance Group'" for compensation but was refused. Then he filed a lawsuit demanding full market value compensation of the destroyed car – UAH 37,858, as well as court and expert costs.
The court of first instance fully satisfied the claim. However, the Chernivtsi Court of Appeal overturned this decision and dismissed the claim.
The panel of judges did not question the fact of the insurance event. However, the reason for cancellation was the incorrect application of substantive law norms in determining the compensation amount.
According to paragraph 30.2 of Article 30 of the Law of Ukraine "On Compulsory Insurance of Civil Liability of Owners of Land Vehicles" (in force at the time of the accident), if a vehicle is recognized as physically destroyed, its owner is compensated not the full market value before the accident, but the difference between the vehicle's value before and after the accident, as well as the costs of evacuating the vehicle from the accident site.
Thus, the damaged vehicle, even if destroyed, has residual value, which is deducted from the compensation amount.
The plaintiff did not determine this indicator and provided no evidence of the vehicle's value after the accident to either the court of first instance or the appellate court. Without this information, the court had no grounds to establish the actual amount of damages and make a lawful decision in favor of the plaintiff.
Therefore, even with proven fault of the insured and confirmed insurance event, the outcome of the trial directly depends on the completeness of the evidence base and the correct determination of the claim amount. The expert's conclusion in the case of total destruction of a vehicle must include not only the market value of the vehicle before the accident but also the value of its remains after the accident.
"Due to the absence of information on the value of the damaged vehicle after the accident, necessary to determine the amount of compensation under Article 30 of the Law of Ukraine 'On Compulsory Insurance of Civil Liability of Owners of Land Vehicles,' it is impossible to conclude on the reasonableness or unreasonableness of the amount of property damage stated in the claim and to make a lawful and reasoned decision," summarized the Chernivtsi Court of Appeal in the case dated June 16, 2026, No. 725/11788/25 (proceeding No. 22-ts/822/750/26).
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