National Settlement Depository (NSD), Russia’s central securities depository, and Ingosstrakh Insurance Company, one of Russia’s leading insurers, have concluded a one-year complex insurance agreement. The policy liability limit has been set at US$65 million for all claims for the duration of the policy. Given the insurance cover scale, the main re-insurers behind the policy include Lloyd’s syndicates (UK) specialized in re-insurance of such risks.
The policy covers the company’s operations within the framework of NSD’s licenses of a professional securities market participant, including clearing and depository operations along with the banking license.
The insurance policy covers damage inflicted upon the policy-holder and third parties (including but not limited to NSD’s clients) as a result of the third parties’ wilful activity, as well as a result of unintentional mistakes and errors made by the policy-holder’s employees and executives while carrying out their professional duties. In addition to this, the insurance policy covers damage inflicted by the company as a result of electronic and computer crimes, technical errors, computer or telecommunications failures led to the partial or full loss of information related to the clients’ accounts.
NSD and Ingosstrakh Insurance Company have been cooperating on different types of insurance for more than 13 years.