Certain types of compulsory insurance in accordance with the Russian Federation legislation
In accordance with the Federal Law “On industrial safety of hazardous production facilities”, property interests of organizations operating hazardous production facilities associated with the risk of harm to life, health or property of third parties and the environment shall be subject to insurance. In other words, an organization that operates a hazardous production facility is required to insure liability for damage to life, health or property of other persons and the environment in case of accidents at the hazardous production facility.
In Russia the concept of hazardous production facility has a specific definition, prescribed by federal law, according to which an enterprise, its workshop, site, area or other facility on its territory, where:
- hazardous materials (flammable, oxidizing, flammable, explosive, toxic, highly toxic, hazardous substances to the environment) are received, used, processed, produced, stored, transported and disposed;
- equipment operating at pressures greater than 0.07 MPa or water heating temperature over 115 degrees Celsius is used;
- permanently installed hoists, escalators, cable cars, funiculars are used;
- melts of ferrous and non-ferrous metals and alloys based on these melts are derived;
- mining operations is underway, works on enrichment of minerals, as well as in underground conditions.
Thus, the insured parties are the owners or operators of sources of nuclear energy, hydraulic structures, pipelines, chemical, petroleum refining, iron and steel plants and other industrial facilities that use hazardous materials, hoisting machines, etc. Insurance risks are: the accident at hazardous production facilities, explosion, fire, leakage, release of hazardous substances.
The insurance rate (the price of insurance) is determined on individual basis for each company, depending on the type of hazardous production facilities, the risk and duration of the contract.
Liability insurance during construction and installation works
For the organization that conducts construction and installation works, at least a confirmation from the insurance company about the presence of an appropriate set a good example for other industries – they tend to unite into self-regulatory organizations whose membership includes the acquisition of complex insurance of construction risks and responsibilities for carrying out construction works. In Moscow and several other regions, as well as in the case of self-regulatory organizations, comprehensive insurance of construction risks is required for construction companies.
The owners and the management of small and medium-sized enterprises of the insurance industry should be aware that in reality insurance of construction risks is one way for an investor who spends sufficient funds on new facilities or renovation of existing facilities to protect themselves from financial losses.
The objects of insurance are:
• materials, equipment and contract works, starting with the preparation of the site and to the signing of the acceptance of the object on the guarantee period;
• construction part, including the zero cycle, the erection of walls, installation of floors, etc.;
• installation of all systems, utility systems, decoration, installation of equipment;
• temporary buildings and facilities;
• construction machinery and equipment of the construction site.
According to the law № 2487-1 “On private detective and security activity in the Russian Federation”, the employer is obliged to insure employees in the event of injury to their life or health in connection to the detective or security operations. Since 2010, staff of the Russian Interior Ministry’s licensing system should exercise control and licensing functions to meet the requirements set out in Art. 19 of the mentioned law. In this connection, in addition to the compulsory insurance of employees (contributions to the Social Insurance Fund), they require managers of private security companies to have additional insurance contracts with insurance companies.
Insurance rates are on average 0.6-2.0% of the sum insured. Unfortunately, the approach of the heads of private security companies is rather formal and insurance sums on such contracts are rather small. Although accident insurance is very important for workers who are constantly exposed to increased risk.
Since 2007, according to the amendments to the law “On tourist activities in the Russian Federation” the operators of inbound and outbound tourism for conducting their activities need to purchase professional liability insurance policy. Licensing has been replaced by liability insurance. In the same year, All-Russian Union of Insurers approved standard insurance rules tour operators
Under federal law, the financial guarantee cannot be less than:
- 500 thousand rubles for tour operators operating in the field of domestic tourism;
- 10 million rubles for tour operators operating in the field of inbound tourism;
- 30 million rubles for or tour operators operating in the field of outbound tourism, if the funds they received from the sale of the tourist product are not more than 100 million rubles according to the annual financial statements, as well as for tour operators operating in this area and using the simplified system of taxation;
- 60 million rubles for tour operators operating in the field of outbound tourism, if the funds they received from the sale of the tourist product are not more than 300 million rubles according to the annual financial statements;
- 100 million rubles for tour operators operating in the field of outbound tourism, if the funds they received from the sale of the tourist are more than 300 million rubles according to the annual financial statements.
For legal persons who intend to tour conduct operator activities in the field of outbound travel and who have not previously carried out this activity, the financial guarantee shall not be less than 30 million rubles.
For insurance companies this kind of insurance from year to year, despite the insurance accidents occurred, is not too detrimental. And with the rate of 4% of the insured sum in 2007, in 2009, insurers have reduced tariffs on the international tourism to 1% on average. It is expected that in the future the rate will decline, but it should be understood that in terms of money, insurance will cost more.
Since 2009, as well as for tourism companies, licensing replaced by liability insurance for the participants of water transportation and postal operators.
According to the document, the operators are exempt from need to license their activities.
Obtaining a license for professional activity requires the purchase of liability insurance for arbitration managers, realtors, notaries, lawyers, appraisers.
Entrepreneurs often become clients of leasing companies
Insurance under the leasing transactions is specific. Insurance in the leasing business is conducted on the basis of both the insurance legislation and the Federal Law “On the financial lease (leasing)” dated October 29, 1998 № 164-FZ, allowing liability insurance for the lessee to the lessor. According to the Law “On Leasing”, “insuring business (financial) risks is agreed by the parties of the lease agreement and is optional”, however, leasing insurance is a commonplace – on different estimates 95% of transactions are insured.
The policyholder may be as lessee and lessor. The question is who will insure the leased property is determined by agreement of the parties. In practice, 40% of the insured objects of lease are insured by a leasing company, and 60% – by the lessee.
Beneficiary: Bank and / or the lessor in the amount owed on the loan and / or lease payments and the lessee in the amount of the remaining part of the insurance claim.
The object of insurance:
- property interests of the insured associated with its loss in the supply of property on lease;
- property interests associated with its loss during leasing operations.
Insured accident: property can be insured in the event of death (loss) or damage as a result of the cases listed in the insurance policy.
The sum insured is usually equal to the costof the property leased.
Insurance rate: 0,15-0,6% of the insured amount if the leased assets are equipment, agricultural equipment and vehicles, registered in State Technical Regulation Service, and 5-12% of the insured amount if the vehicles, that are registered in the traffic police, are leased .