Third party liability insurance of hazardous facility owners: rate range expanded
The Bank of Russia has set new rates in compulsory insurance of a hazardous facility owner’s third party liability, which will apply from 1 November 2026.
The new rates reflect the level of accident risk more accurately and factor in the dynamics of premiums collected and payments made over recent years.
The lower bound of the rate range has been reduced by 25% for production facilities using pressure equipment, petrochemical and mining enterprises, as well as hydraulic structures and mines; and by 50% for oil and gas production companies, metals companies, explosives-related facilities, and cranes. For the remaining types of hazardous facilities, it has been reduced more significantly – by 75%.
The upper bound of the rate range has been changed only for certain hazardous facilities using pressure equipment: specifically, it has been increased by 25%.