Moscow law office "Kovalev Tugushi & partners"


The Bank of Russia published the draft of Bank of Russia Ordinance “On insurance tariff rates and their limit (maximum and minimum) values, structure of insurance tariffs, including limit values of insurance payments for financing compensation payments, the procedure for application of insurance tariffs by insurers when determining insurance premium payable under agreement on the compulsory insurance of the civil liability of hazard industrial facilities owners for causing injury in an accident at a hazard industrial facility” (hereinafter referred to as “the Draft”).

The Draft replaces similar Bank of Russia Ordinance No. 5052 dated January 09, 2019 which currently provides for insurance tariff rates on hazard industrial facilities (hereinafter referred to as “HIF”).

The owner of HIF shall insure property interests related with the liability to compensate the damages incurred to the aggrieved parties during the HIF whole service life under para.1, 2 art. 4 of the Federal Law No 225-FZ “On the compulsory insurance of the civil liability of a hazard industrial facility owner for causing injury in an accident at a HIF” dated July 27, 2010. Such type of insurance is compulsory, therefore, the rules on insurance of the civil liability of hazard industrial facilities owner were adopted by Bank of Russia Regulation No 574-P dated December 28, 2016.

A HIF owner shall mean a legal entity or a sole proprietor having right of ownership, right of economic or operative management of HIF or lawfully possess HIF and operate it (subpara. 4 para. 1 art. 2 of FZ dated July 27, 2010 No 225-FZ). Thus, if the owner of HIF decides to transfer HIF to a lessee who possesses a license issued by Rostekhnadzor, the owner is not obliged to insure its liability.

If the Draft is adopted, the minimum insurance tariff rates of 12 HIF types will decrease by 25 % whereas maximum insurance tariff rates will stay the same. Minimum rates of 75 % of the current rates will be introduced on 278 HIF types, meanwhile current rates shall be considered maximum rates. Referring to hydraulic constructions (2 types of objects), the Bank of Russia decided not to reduce its insurance rates. As a result, a “tariff corridor” in the form of minimum and maximum tariff rates for 280 HIF types will be introduced. The latter would allow for a flexible approach to determination of insurance premiums by insurers.

An insurer will have to conduct the analysis of HIF technical and constructive сharacteristics and determine insurance tariff on the basis of minimum and maximum possible insurance rates stipulated in the Draft. Moreover, an insurer will have to prepare a hard copy of document containing the grounds for determination of basic insurance rate (para. 4 of the Draft).

The HIF operation without an agreement on the compulsory insurance of the civil liability of HIF owners entails administrative fine (art. 9.19 of Code of administrative Offences) in the amount:

  • from 15 to 20 thousand rubles for officials,
  • from 300 to 500 thousand rubles for legal entities.

Absence of an insurance agreement at the date of Rostekhnadzor audit will entail administrative liability of HIF owner (Ruling of Ural Region Commercial Court No A50-10175/2019 dated October 21, 2019, Ruling of Moscow Region Commercial Court No A40-74544/2019 dated December 24, 2019).

The Draft is scheduled to enter into legal force within 10 days upon its official publication. The Bank of Russia accepts proposals and comments on the Draft until February 5, 2020.

Therefore, after the adoption of the Draft by the Bank of Russia the costs for the insurance of liability will be reduced due to the reduction of insurance premiums. Insurance companies will have greater flexibility in determining insurance premiums owing to the introduction of “tariff corridor”.

Ksenia Stepanischeva, Counsel
Ksenia Stepanischeva 2020 Insurance Legal support for business