Direct Loss Settlement


What is the direct claims settlement system?

Direct Loss Settlement (DLS) is a system in which the insurer that has insured the civil liability of the injured party, in terms of compensation for damage related to damage or physical destruction of the injured party's vehicle, acts as the insurer that has insured the civil liability of the person responsible for the road traffic accident. This system does not require the insured to enter into additional insurance contracts, except for the contract of compulsory motor third party liability insurance (CMTPL) concluded with an insurer participating in the DLS system.


Advantages of the Direct Loss Settlement system 

For vehicle owners:

In the event of a road traffic accident, the victim has the option of applying for compensation to "his" insurance company to receive compensation. In this way, the policyholder can choose an insurance company that will not only compensate for the losses for which the policyholder is responsible, but also compensate for the losses incurred by the policyholder in an accident caused by the driver of another vehicle. In this case, the insured will not have to "participate in the lottery" by applying for compensation to the insurer of the responsible party.  

For insurance companies:

The insurer is interested in attracting loyal customers by providing quality services. In addition, by participating in the direct claims system, insurance companies have the opportunity to increase the efficiency of their claims work many times over.


When can I use the Direct Loss Settlement system?

1. The accident involved only two land vehicles and caused damage exclusively in the form of damage or physical destruction of the vehicle.

2. Both vehicles are insured at the time of the accident, or the victim has an MTPL insurance contract concluded under the terms of Law 3720-IX, and the culprit is uninsured.

3. The information available to the Insurer of the Insured regarding the policies of the parties to the accident is not contradictory in terms of the data on the basis of which the insured vehicle is identified (make, type, state registration number plate) and the availability of insurance coverage as of the date of the accident and the amount of insurance amounts are determined.


Some peculiarities of Direct Loss Settlement

Compensation for damage to property

In a direct settlement, only damage to property is compensated for

Compensation for damage to life and health 

For compensation for damage to life and health, the victim should contact the insurance company of the person responsible for the accident 

The procedure for registration of an accident

The accident can be recorded by the National Police or a EAR can be drawn up (there is no difference with the procedure of the usual system of loss settlement under MTPL insurance contracts)  


IMPORTANT! The Policyholder who is injured in a road traffic accident and has first applied for insurance indemnity to ‘his’ Insurer shall lose the right to apply for the same event to the Insurer of the person responsible. The Policyholder who is injured in a road traffic accident and has first applied for insurance indemnity to the Insurer of the person responsible for the road traffic accident shall lose the right to apply to ‘his’ Insurer for the same event.