OREANDA-NEWS. April 07, 2010. Due to the growing subrogation debt of certain insurance companies, Ingosstrakh OJSIC is compelled to turn to the Russian Association of Motor Insurers and the Federal Supervision Service for Insurance with regular complaints, as well as make relevant announcements in the mass media. Such complaints and publication of press releases concerning debts are related to major violations by certain insurers of the CMPTL laws manifested in the failure to make claim payments in due time or principal decision of an insurer to reject insurance compensation without reasons. 

Ingosstrakh has repeatedly informed the Federal Supervision Service for Insurance and the Russian Association of Motor Insurers on persistent debt growth on subrogation claims of such companies as General Reserve Insurance Company LLC, Korona Insurance Group LLC, Konda CJSIC, City Insurance Company LLC, General Insurance Alliance LLC, etc. At present the insurance licenses of the said insurers have been revoked.

Therefore, the default to pay claims because of subrogation is one of the indicators of financial instability of the insurers which typically results in license revocation.

Below you can see the information on the debt growth dynamics of the defaulting insurance companies presently having a valid insurance license.

Insurance companies with revoked licenses having the largest debts to Ingosstrakh OJSIC

Debt growth dynamics

1st quarter, 2009

2nd quarter, 2009

3rd quarter, 2009

4th quarter, 2009

1st quarter, 2010

MAKS CJSC

44,820,347

54,422,327

54,956,812

62,597,765

84,199,113

Spasskiye Vorota Insurance Group CJSC

17,644,455

32,010,952

38,806,571

46,509,803

62,171,260

INNOGARANT Insurance Company LLC

2,418,655

5,043,199

9,208,914

14,971,873

31,568,601

Rossiya OJSIC

8,121,963

12,983,580

14,408,379

20,270,681

25,938,513

Megaruss-D Insurance Company CJSC

16,720,803

22,397,576

26,889,844

31,135,642

24,725,449

Rosstrakh OJSC

5,102,085

7,189,072

 7,869,439

10,964,829

16,387,438

First Insurance Company LLC

3,237,458

4,889,931

6,434,570

9,010,233

13,541,678

Ariadna Insurance Company CJSC

5,639,368

7,924,192

8,423,666

9,988,915

13,202,276

Russian Insurance Traditions Insurance Company CJSC

1,021,809

1,982,637

3,157,548

5,072,634

9,956,864

Inform-Strakh Stock Insurance Company CJSC

3,160,642

4,491,587

5,118,241

5,666,083

6,562,198

Companion Insurance Group LLC

6,484,372

5,334,864

4,670,106

4,927,813

6,320,328

Intersectoral Insurance Center OJSC

1,440,996

3,111,343

3,502,286

4,071,745

5,078,080

Borovitskoye Insurance Company OJSC

2,393,347

2,823,110

3,043,598

3,332,791

3,136,278

North Treasury Insurance Company LLC

1,519,840

3,078,978

2,370,528

2,542,115

2,940,220

ASOL Insurance Company CJSC

2,950,833

4,889,871

5,200,923

5,063,328

2,947,889

GARMED Insurance Company LLC

1,049,879

896,577

1,210,456

1,376,261

2,786,830

RK-Garant Insurance Company CJSC

972,807

1,433,391

1,779,141

2,007,549

2,684,876

Region OJSIC

3,079,523

3,493,237

2,929,143

1,789,902

2,179,660

REGIONGARANT Insurance Company OJSC

990,333

2,033,541

1,906,104

1,479,292

1,177,955

We are sure that debt monitoring helps to early reveal the insurers’ financial instability.