OREANDA-NEWS. December 24, 2007. OJSC Transsiberian reinsurance corporation paid 2,9 MIO RUR of reinsurance indemnity under the grain crop reinsurance treaty on the fact of damage caused by drought disaster. The risks were reinsured on the base of Proportional facultative reinsurance treaty with the LLC Volgogradskaya Insurance Company ASCO.

Amount of coverage under the contract of winter wheat crop reinsurance was estimated as 18,5 MIO RUR. The treaty was settled with agricultural producer of Volgograd’s region in September, 2006. Reinsurance contract covered all risks that are traditional for that kind of business and the region.

Shortfall of the crop is the insurance event that was acknowledged in consequence of drought-stricken. Sowings originated in the period of May to July, 2007. In September 2007 yield index appeared to be twice less then average yield rate of the previous five-year plan mentioned in the insurance contract.

Taking onto account the issue of pretty high unconditional franchise the aggregate loss sum amounted up to 5,3 MIO RUR. Summing-up the reinsurance event packet JSC Transsib Re adopted the indemnifiable sum of 2,9 MIO RUR with its share of 54% of the aggregate damage amount.