OREANDA-NEWS. March 20, 2009. European Bureau branch of OJSC Transsiberian Reinsurance Corporation paid insurance company “Group Renaissance Insurance” USD 250 ths for the fire in OJSC Kazanorgsintez affiliated high-preassure polyethylene processing plant. Risk was accepted under obligatory property reinsurance contract.

The Kazanorgsintez accident took place on 18 July, 2006. The depressurization in one of high-preassure polyethylene processing train owing to emergency valve failure resulted in the explosion followed by combustion of polyethylene. As a result of the fire, polyethylene processing buildings, equipment and shop constructions were damaged.

According to the report of Cunningham Lindsey Russia surveying and adjusting company the loss was due to unintended misuse of the machines. Thus the event was admitted assured. The total amount of loss made up more than USD 4.5 mln.

After receipt of full loss portfolio Transsiberian Re decided to pay the reinsurance indemnity of USD 250 ths. This amount is stated without the contract reinstatement premium.