“The National Depository Center” (Closed Joint Stock Company) (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, and “Ingosstrakh Joint Stock Insurance Company Ltd.” (Ingosstrakh) announced today the signing of NDC's new insurance policy covering criminal and professional liability. The policy liability limit was set at US$50 million for any single claim for the duration of the policy and for all claims during the period. Including internal funds allocated for the purpose, the total amount of insurance coverage for NDC liabilities is now over USD83 million. The re-insurers behind the policy include Lloyd’s syndicates (UK), as well as several major German re-insurers.
The following activities, carried out in accordance with NDC’s securities market licenses, its charter and client contracts, are covered by the new policy: clearing and depository activity; activity on depository related services; and activity relating to the safekeeping of securities but not connected with depository activity.
Under the contract, an insured event is considered a situation in which damage is inflicted upon the policy-holder and third parties (including, but not limited to NDC's clients), as a result of improper activity by third parties or employees of the policy-holder, including electronic and computer crimes, operations with forged documents, securities and monetary funds, as well as damage as a result of unintentional mistakes and errors, made by the policy-holder’s employees and executives while carrying out their professional duties.
In accordance with the insurance policy and the legislation of the Russian Federation, an insured event is a fact determining the policy-holder’s liability to compensate for third parties’ losses emerging from the policy-holder’s managers’ or employees’ operations, mistakes, negligence or omission while implementing insured activities.
Insurance coverage applies to insured events which occur during the period of the insurance policy’s duration. The insurance policy covers losses first discovered to have been incurred by the policy-holder in connection with events which occurred after 1 Sept., 2002.
“Ingosstrakh Joint Stock Insurance Company Ltd.” (www.ingos.ru) has operated in the domestic and international market since 1947. The company is the leader among Russian insurers in terms of the size of insurance premiums in voluntary insurance, other than life insurance.
Ingosstrakh holds ratings from Standard & Poor’s (BBB-, Negative Outlook, and ruAA+ National Scale), and Expert RA (A++).
Ingosstrakh is authorized to render all types of insurance services (with a view to underwriting specialization) provided in Clause 32.9 of the Law "On Insurance in the Russian Federation," and reinsurance services. The Company operates in 220 Russian cities. Six representative offices and nine subsidiary companies of Ingosstrakh operate in the CIS and other countries.
"The National Depository Center" (Closed Joint Stock Company) is the largest settlement depository in Russia, servicing the full range of debt and equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
Among NDC’s shareholders are MICEX (50,1727% of shares), Bank of Russia (42,2997% of shares) as well as GPB (OJSC) (Gazprombank), Evrofinance Mosnarbank, ROSBANK (OJSC JSCB), JSC VTB Bank, Bank of Moscow, JSC Rossiyskiy Kredit Bank, Vnesheconombank, ING Bank (Eurasia) ZAO, JP Morgan Bank International LLC, ZAO UniCredit Bank, Deutsche Bank, and Sberbank. NDC has stakes in Depository Clearing Company CJSC (37.29%), in Settlement Depository Company CJSC (28.54%) and in Bank "National Clearing Centre" CJSC (0.27%).
For further information about NDC: www.ndc.ru, or NDC Public Affairs Division: +7 495 232 0910,