MOSCOW - National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, announced today its signing with leading insurer Ingosstrakh a new insurance policy covering criminal and professional liability. The policy liability limit was doubled to USD50 million for all claims for the duration of the policy (from Sept. 1, 2007 to Aug. 31, 2008), and potentially for any single claim during the period. This is one of the highest insured liability limits among Russian financial institutions. Including internal funds allocated for the purposes, the total amount of insurance coverage for NDC liabilities is now over USD96 million. The re-insurers behind the policy include Lloyd’s syndicates (UK), as well as several large 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 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, an insured event is a fact determining the policy-holder’s liability to compensate for Third Parties’ losses emerging fromj 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.
About Ingosstrakh
Ingosstrakh Open Joint-Stock Insurance Company (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 (BB+, Stable Outlook, and ruAA+ National Scale), Moody's Investors Service (Ba2, Positive Outlook), Moody's Interfax Rating Agency (Aa2.ru and RUS-1 National Scale) and Expert RA (A++).
Ingosstrakh is authorized to render all types of insurance services (with a view to underwriting specialization) provided in Article 32.9 of the RF Law on Insurance in the Russian Federation, and reinsurance services. The Company operates in 182 Russian cities. More than 15 representative offices and branches of Ingosstrakh operate in the CIS and other countries.
About NDC
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property are 46,7% and 39,3% respectively, and in the votes 50,2% and 42,3% respectively). Members include Gazprombank, Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, International Moscow Bank, Deutsche Bank, and Sberbank of Russia. The Partnership also has a stake in Depositary Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).
For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910, .