Procedure for compensation to equity construction participants: regulator’s clarifications
The Bank of Russia has provided its clarifications on the procedure for paying compensations to individuals — equity construction participants under developer public liability insurance contracts.
In compliance with amendments to laws, developer public liability insurance contracts terminated ahead of schedule from 27 June 2019.
According to the Bank of Russia information letter, an individual should apply to the developer in order to receive the compensation, if the developer was declared bankrupt before 27 June 2019 and the insurance compensation claim was submitted to the insurer prior to the above date. After 27 June 2019, developers’ obligations are secured by the Fund for the Protection of the Rights of Individual Shared-equity Construction Participants.
The Bank of Russia recommends to apply to the Fund for the Protection of the Rights of Individual Shared-equity Construction Participants, if you need more details on how to receive insurance compensation.