Updated list of developer insurers posted

Pursuant to Article 15.2 of Federal Law No. 214-FZ, dated 30 December 2004 ‘On Participation in Shared Construction of Apartment Houses and Other Real Estate and Amendments to Several Legal Acts of the Russian Federation’, the Bank of Russia has updated and posted on its website the list of insurers. The listed insurers are qualified, under the aforementioned Article, to conclude insurance contracts covering developers’ civil liability as are made to insure against non-execution or improper execution of a developer’s contractual obligations to transfer residential property to co-funded construction investors (shared construction participants).

The following insurance companies have been found in incompliance with requirements for an insurer’s financial soundness:

• International Trade Union Insurance Company MESCO, Limited Liability Company
• National Insurance Company TATARSTAN, Open Joint-stock Company
• Construction Insurance Group, Limited Liability Company.

On 26 May 2016, the above-mentioned organisations have been struck off the insurers’ list.

The Bank of Russia makes a note that the previous insurance agreements entered into by the above insurance companies remain in force and subject to execution by the parties in keeping with terms and conditions of a respective contract and insurance rules.

To enable protection of rights, legitimate interests and property of shared construction participants, developers shall be obliged to re-enter into insurance contracts with the insurers in the updated list which will cover shared construction participants with ROSREESTR- unregistered shared construction contracts. The latter fact makes such insurance contracts in breach of law as of the date of this information notice.

The reference to the Press Service is mandatory if you intend to use this material.

26.05.2016 00.00.00