OREANDA-NEWS. December 9, 2008. The Tender Board of North-West Telecom summed up the tender for liability insurance services for North-West Telecom directors and officers (Report No. 01-54/16ОК (3) of 05.12.08)*.

JSC SOGAZ was announced as the winner.

Therefore, in accordance with the tender terms and with the Company’s Charter, North-West Telecom will provide liability insurance of the Board of Directors’ members, Executive Board’ members, and the Chief Executive officer of the Company against lawsuits (claims) by stake-holders such as shareholders, employees, governmental authorities, and customers.

The liability insurance will ensure recovery of damage to the Company or its directors in case of civil (property) liability, and of legal costs in case of criminal or administrative liability. 

The main terms of insurance are:

Risks covered: liability insurance of directors and officers (non-refundable damage); Company liability insurance under claims initially presented to the Company’s directors and officers (refundable damage); and Company securities liability insurance.

Amount of coverage: Ruble equivalent of USD 30 million.

Coverage area: Worldwide, including the United States and Canada.

Period of cover: 1 year.

Noted Venera Khusnutdinova, Chief Financial officer of JSC North-West Telecom, “Today, directors and officers liability insurance is a prerequisite for companies with advanced corporate governance and huge interests of foreign investors. Furthermore, the directors’ insurance policy is not only an instrument of protection for the directors, but also an efficient tool of risk management enabling transfer of some expectable costs to the insurer.”