Insurance against military risks: who can provide it and what are the costs involved?

The onset of the war in eastern Ukraine in 2014, followed by Russia's full-scale invasion in 2022, has compelled the domestic insurance market to adapt to a new reality. A variety of market participants now offer insurance against military risks, covering movable and immovable property, life and health, as well as production and business.

To find out how much you can insure against war and under what circumstances compensation may be denied, read the article on RBK-Ukraine.

What is military risk insurance

This type of insurance is known worldwide as PVI (Political Violence Insurance) – covering risks of war, terrorism, and civil unrest. Given that such risks can lead to extraordinary damages, this form of insurance is typically provided by international reinsurance companies specializing in protecting insurers from significant losses.

In Ukraine, following the onset of Russia's invasion of Donbas in 2014, some companies began offering insurance against military risks for various types of property and assets. Military personnel participating in the Anti-Terrorist Operation (ATO) were also insured. However, after February 24, 2022, such policies started to be offered by a larger number of insurers.

In our country, it is possible to insure life and health against injuries or death resulting from armed conflict. There are also policies for movable and immovable property that should compensate for damages caused by military equipment and shelling.

How to obtain military risk insurance

Choose an insurance company and the type of insurance, such as home or life insurance. This can be done either at the company’s office or online by filling out the necessary form and consulting with an expert over the phone.

Next, if you wish to insure a vehicle or property, a company representative will conduct an inspection and appraisal of the asset. When insuring life and health, a questionnaire must be filled out with information regarding health status, medical history, and personal habits. In some cases, a medical examination by a doctor designated by the insurance company is required.

Some insurance companies allow coverage for damages from falling missiles, debris, and bomb explosions, including windows, balconies, loggias, furniture, and appliances. Incidents resulting from military actions include hits from shells, mines, bullets, building collapses, fire consequences, and landmining, among others.

For example, to insure a house or apartment, the property must be operational and have completed repairs. Additionally, the property must not be pledged to a bank or any other financial institution.

Then, the amount that you are obligated to cover yourself before receiving compensation from the insurance company is calculated. The deductible for damage is typically around 5%, although some companies offer services without it.

After signing the contract, you will receive a policy confirming your insurance coverage. However, the insurance takes effect not immediately but at the specified date in the contract. Sometimes this date may occur one or two weeks after signing the document. That is, if an event occurs at least a minute before the activation of the contract, which comes into effect at 00:00 hours the following day, compensation will not be paid. An exception exists for the continuation of the policy into the following year; in this case, there is no deferral.

How to report an insured event

In the event of an insured incident, meaning property damage, depending on the terms of the contract, you must notify the insurance company within a maximum of two days. This can be done via telephone or in written form on the insurer's website.

Also, call the police and the State Emergency Service (SES) to document the military crime. Documents confirming the insured event include a list of damaged property and documents from competent authorities.

Photo: Vitaliy Nosach / RBK-Ukraine

Among the necessary documents, you should have:

• a claim for compensation;
• a certificate (policy);
• notification of the insured event;
• tax identification number of the claimant;
• passport;
• founding documents for the property;
• technical passport of the real estate.

A specialist must inspect the damages within 1-2 days, after which you can begin cleaning and restoring the damaged or destroyed property. The cost of repairs is calculated within 2-3 days. The actual insurance payout is made within 10-15 days.

Housing insurance

The insurance terms and maximum compensation amounts are determined individually by each insurer. Currently, most companies offer property insurance against war-related damages within certain limits, not covering the full value of the property. However, there is an option for insurance with full damage coverage, though this significantly affects the cost.

For instance, the insurance company Universalna offers a policy that compensates for damages from missile strikes and drones of any type and their debris, as well as air defense and other munitions. Damages from grenades, mines, firearms, and even nuclear weapons are not covered.

Additionally, the insurance company limits the compensation amount in the event of an insured incident to 100 million UAH per object. An unconditional deductible is set in the range of 0% to 30% of the total loss amount.

The insurance policy from "INGO" provides annual coverage from 125,000 to 2 million UAH. The insurance premium is set between 1,049 UAH and 9,160 UAH per year. Interestingly, the insurance policy can be arranged by both the property owner and any other authorized person, including tenants.

When insuring real estate, causes of damage recognized as an insured event include hits from shells, missiles, drones, and their debris, as well as mines, bullets, and explosion consequences – shattered windows and other damages to real property.

When insuring an apartment or house, the insurance coverage extends to both movable and immovable property (finishing, repairs, engineering and other communications, furniture, household and other appliances, etc.), as well as liability towards neighbors (or other parties).

Life and health insurance

You can insure life and health against military risks. This service is offered by several companies. For example, NASC "Oranta" provides insurance for a term of one month to one year against accidents caused by war, covering from 10,000 to 200,000 UAH per person.

It is noted that the full insured amount will be paid to the heirs in the event of the insured person's death. If the insured sustains an injury due to an accident, the insurance payout amount is calculated separately.

The insurer also guarantees payment for psychological or psychotherapeutic services up to 2,000 UAH for clients who have suffered injuries due to military actions, as well as rehabilitation procedures for the insured person on the doctor's referral. This may include consultations with a rehabilitation specialist, therapeutic exercise, and massage. The insurer covers these services up to 5,000 UAH and provides 10 rehabilitation sessions or procedures.

Another company providing similar services is ARX, which insures individuals against military risks for terms ranging from one month to one year, covering amounts from 100,000 to 300,000 UAH. The insurance premium ranges from 125 to 4,500 UAH, with no deductible payment.

ARX also pays relatives 100% of the amount in the event of death of the insured due to war. Compensation for injuries will be determined separately. Additionally, a consultation with a doctor must occur no later than 18 hours after the event, if possible. The reason for any delay or inability to inform must be documented.

Photo: Vitaliy Nosach / RBK-Ukraine

Both insurance companies provide their services exclusively to civilians. However, TAS Life began insuring actual participants of the ATO and future military personnel even before the full-scale invasion. Since last spring, they have started offering insurance services to servicemen currently serving in the defense forces.

The coverage of insurance risks depends on whether the serviceman is in a high-risk zone at the time of the insured event. The insurance company covers all insurance risks arising from accidents or death, up to 100,000 UAH.

Vehicle insurance

Auto insurance can only be ordered under CASCO policies, as the OSAGO contract does not cover such losses. For example, the insurance company "VUSO" has three insurance packages covering losses due to military actions:

"Minimum" costing 8,500 UAH, with an insured amount of 400,000 UAH.
"Medium" costing 16,500 UAH, with an insured amount of 800,000 UAH.
"Maximum" costing 25,000 UAH, with an insured amount of 1,200,000 UAH.

Vehicles up to 14 years old can be insured. Additionally, there is no need to inspect the vehicle or establish its market value