Insurance

 

On 3 November 2011 Government adopted Resolution No. 916 approving Regulations on Mandatory Insurance of the Owner of a Hazardous Facility against Civil Liability for Harm Caused by an Accident at the Hazardous Facility.

The Resolution is issued pursuant to Federal Law No. 225-FZ “On Mandatory Insurance of the Owner of a Hazardous Facility against Civil Liability for Harm Caused by an Accident at the Hazardous Facility” as of 27 July 2010. The Law obliges owners of hazardous facilities to insure, at their own expense, their civil liability for any harm caused to injured parties by accidents at hazardous facilities for the entire period of the use of such facilities.

Pursuant to the Law, the range of insurance coverage varies from RUB 10 million (about US$320,000) to 6,5 billion (about US$210,000,000) depending on the type of the hazardous facility and the number of injured parties. The range of insurance payments varies from RUB 25,000 (about USD$800) to two million (about US$64,000).

The Regulations provide for a list of mandatory actions of the insurer and the owner of a hazardous facility in case of accident at a hazardous facility and rules for determining the amount of insurance compensation. Also the Regulations set down compulsory rules for a mandatory insurance agreement. The agreement is public and is to be concluded for each hazardous facility for a period of at least one year. The mandatory insurance agreement may be terminated early in case of certain events listed in the Regulations.

The mandatory insurance agreement must specify the following circumstances that affect the insurance premium: (a) the maximum possible number of the injured in case of accident, (b) increase/ reduction of possible harm in case of accident, and (c) other circumstances that may change the insured risk.

Insurance compensation is paid to injured parties in case of harm caused to their life, health, or property due to an accident at a hazardous facility. The Regulations specify events not covered by insurance. Russian law shall apply to all disputes arising from the mandatory insurance agreement.

The Resolution will enter into force on 1 January 2012, save for provisions determining the amount of and procedure for, insurance payments in case of harm caused to health, which will enter into force on 1 January 2013.

dowload the article in PDF

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

Share/Save