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The article is devoted to studying the compensation for loss of life or damage to health suffered by employees in case of an employer's bankruptcy. The authors reviewed and analyzed the procedure of dissolution and liquidation of a legal entity, and the procedure of capitalizing the payments to meet all of the obligations the bankrupt employerhas before its employees. Particular attention is paid to the problem of determining the order of priority of workers’ claims for damage compensation in case of the employer's bankruptcy. Separate attention is paid to the fact that bankruptcy — that is the debtor's incapability to resume its solvency through the procedures of rehabilitation and the settlement and to satisfy established monetary claims of creditors in accordance with the procedure set by the Law of Ukraine "On the restoration of the debtor's solvency or recognition of its bankruptcy" which leads to the use of the liquidation (dissolution) procedure. The articleis analyzed of  legal acts concerning the capitalization of payments and compensation to victims.According to Part 2 of Art. 1205 of the Civil Code of Ukraine, in the event of the liquidation of a legal entity, payments due to the victim or persons entitled to such reimbursement as a result of the death of the breadwinner must be capitalized for payment to their victim or specified persons.At the same time according to the Article 6 of the Law № 1105 the subjects of the insurance against accidents are the insurants and in separate cases (when thevictim is dead) — their family members and other persons, beneficiaries, and theinsurer. Insurant is the person entitled to the benefit of the insurance. Insurats arethe employers and in some cases – the persons specially named as the insured. Theinsurer is the Social Insurance against industrial accidents and occupationaldiseases Fund of Ukraine. Thus the article concludes that the insurant is bound by legislature to conduct capitalization of insurance payments in any case of liquidation (not only through declaring the employer bankrupt but also in other cases provided by law).

CAPITALIZATION OF PAYMENTS AS A WAY TO COMPENSATE THE DAMAGE TO LIFE AND HEALTH OF AN INDIVIDUAL IN CASEOF A LEGAL ENTITY’S BANKRUPTCY