National Settlement Depository (NSD) of Russia and Ingosstrakh Insurance Company, one of Russia’s leading insurers, have concluded an agreement for complex insurance covering criminal and professional liability of NSD.
The policy liability limit was fixed at $50 million for all claims for the duration of the policy, and potentially for any single claim during the period. Including internal funds allocated for the purposes, the total amount of liability cover is more than $303 million (as of Dec. 1, 2010). The reinsurers behind the policy include Lloyds syndicates (UK).
The new policy covers activities carried out in accordance with NSDs securities market and bank operations licenses, and also the company’s charter and client contracts.
According to an NSD statement, under the contract, an insured event is considered a situation, in which damage is inflicted upon the policyholder and third parties (including, but not limited to NSDs clients), as a result of improper activity by third parties or employees of the policyholder. It includes electronic and computer crimes, operations with forged documents, securities and monetary funds, as well as damage as a result of unintentional mistakes and errors made by the policyholders employees and executives while carrying out their professional duties.