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Third party liability insurance of hazardous facility owners: new rates

19 December 2024
News

The lower bound of the rate range for compulsory third party liability insurance of hazardous facility owners will be reduced by 25–75% for most of the facility types, as stipulated in the draft Bank of Russia ordinance. The regulator has prepared its proposals taking into account the analysis of the accumulated data on accidents at the facilities and changes in the amount of compensation paid to the victims.

For the facilities with pressure equipment and coal mines, the bound of the rate range will stay the same. However, it will be lowered by 25% for hydraulic structures as well as petrochemical and mining enterprises. A more significant reduction of 75% is proposed for certain types of power plants as well as facilities used to store by-products of mining operations (tailings dams) and mine construction sites. According to the draft ordinance, the lower bound of the rate range for all other types of hazardous facilities will be decreased by 50%, while the upper bound will remain unchanged.

The document provides that the adjusted rates will become effective from 31 July 2025.

Preview photo: Kodda / Shutterstock / Fotodom