Property and Engineering Treaty

Property and engineering risks portfolio of Kapital Re is protected by the Excess of Loss Reinsurance Treaty with capacity of USD 60,000,000 any one risk with a priority of USD 3,000,000.

In respect of risks where the share of Kapital Re is 70% or more the treaty capacity equals to USD 100,000,000.

Business covered may be based on full sum insured, loss limits or partial value (Probable Maximum Loss (PML) basis) on terms as original and may include first loss policies.

  • PML is the highest loss amount that can be anticipated for one insured disastrous event, in which the initial accident is so large that all installed safety systems are destroyed or non-functional and cannot stop the escalation of losses. This amount is estimated as maximum with reasonably high probability. PML to be calculated either by Kapital engineering team, Kapital Group Committee of Underwriters or by any professional surveyor.

PERIOD:

Losses occurring during the period 12 months at 00.01 hours on 1st April 2012 Local Standard Time until 00.01 hours on 1st April 2013, local standard time at the location of the loss.

PROGRAMME LEADER:

SCOR Reinsurance (Moscow, Russia), a 100%subsidiary of SCOR Global P&C, France

  • SCOR Reinsurance has 'A' long-term insurer financial strength ratings assigned by Standard and Poor’s Ratings Services

TERRITORY:

Risks situated in Russia and/or territories of the former Union of Soviet Socialist Republics (USSR) and Russian interests and/or interests of former USSR territories abroad ceded by CIS and Georgian cedants. Risks located in the United States and Canada are excluded.

CLASS OF BUSINESS:

All limits are in respect of CJSC Kapital Re net retained line:

  1. Property Account
  1. Property All Risks or Named Perils, subject to the following:

Vehicles in the Open sub-limited to USD 15,000,000.

Fine Arts sub-limited to USD 10,000,000.

Event limit of USD 50,000,000for pipelines.

  1. Business Interruption due to damage to the Property covered on Named Perils or All Risk Basis.

Contingent Business Interruption subject to named suppliers and/or customers and sub-limited to USD 20,000,000

Service Interruption and Denial of Access sub-limited to USD 15,000,000

  1. Livestock, bloodstock and poultry covered on named perils basis (Fire, Lightning, Explosion, Aircraft (FLEXA), natural perils and malicious damage) sublimited to USD 20,000,000.
  1. Deterioration of Stock in Cold Storage Insurance sublimited to USD 5,000,000.
  1. Warehouse operator liability on sudden, unforeseen and accidental physical loss up to USD 10,000,000.
  1. Strikes, Riots and Civil Commotions (SRCC) are covered sublimited to USD 30,000,000.
  1. Engineering Account

1.Construction and Erection All Risks

Maintenance periods of up to 36 months with MR004 clause and/or MR003 clauses.

DE5 (Design Improvement Exclusion wording) or LEG 3 (“Improvement” Defects Wording) is sub limited to USD 25,000,000.

TPL not exceeding 25% of material damage sum insured but subject to a maximum USD 10,000,000

Advanced Loss of Profit (ALOP) and Delay in Start-Up (DSU) is sub-limited to USD 15,000,000.

Wet risks are sub-limited to USD 25,000,000(limit applies to the sum insured for the part of the construction project accounted for wet risk).

Comprehensive Project Insurance is sub-limited to USD 15,000,000 in respect of Marine Cargo

2.Contractor’s Plant and Machinery, Contractor’s Plant and Equipment

3.Electronic Equipment and Business Interruption following thereon

4.Machinery Breakdown and Business Interruption following thereon

5.Strikes, Riots and Civil Commotions (SRCC) are covered sublimited to USD 30,000,000

REINSURER`S RATINGS

(exposure as percentage of the total programme indemnity):

1