Bank of Russia recalculates rates for compulsory third party liability insurance for owners of hazardous facilities
The Bank of Russia has estimated insurance rates for the compulsory third party liability insurance for the owners of hazardous production facilities for inflicting damage as a result of accidents at such facilities. Insurance rates depend on the type of hazardous facility and on the factors determining the extent of risk.
The analysis conducted shows that insurance rates shall be adjusted for all types of hazardous facilities. Insurance rates may be reduced by up to 25% for the majority of types of such facilities. In view of the above, the Bank of Russia has prepared a draft ordinance regulating insurance rates for compulsory third party liability insurance for owners of hazardous facilities.
This document also stipulates the introduction of rate corridors for all types of hazardous facilities. Practice in other types of insurance, such as OSAGO and compulsory insurance of freight carriers’ liability, suggests that rate corridors enable the more flexible application of rates, thereby supporting the development of competition in the market.