OREANDA-NEWS. December 24, 2010. Ingosstrakh continues to deal with the insured events related to the damage caused to the cargo port of Sochi by the storm of December 14, 2009.

Transstroy Engineering Corporation (CJSC) received 290 million rubles under a coinsurance contract for construction and erection risks. The share of Ingosstrakh in this coverage is 50% (145 million rubles). The indemnity was paid in the form of several tranches in autumn 2010. This policy insures the port facilities constructed at the expense of federal funds (federal property) at the first stage of the construction project. The final settlement of this loss is planned in the nearest term.

It is noteworthy that in March 2010 Ingosstrakh provided the first tranche to Transstroy Engineering Corporation in the amount of 50 million rubles. This payment was made by the insurer under the insurance policy for construction and erection risks related to the part of port facilities, which will be financed by extrabudgetary (invested) funds at the second stage of the construction project. The amount of the final insurance payment is being considered now and this loss will be settled in full after it is determined.

As stated earlier, the insurance property under the executed contracts is a cargo port, including hydraulic structures, port buildings and structures. The facility is intended for acceptance, short-term storage and loading of floating cargoes on motor transport for clearance. Two project stages were insured against all construction risks.

The first stage is named “Establishment of a cargo district in the Sochi port with a coast infrastructure in the estuary of the Mzymta river to be redesigned as yachting infrastructure. Federal property”. The work was performed at the expense of budgetary funds and the total insured amount was about 2.36 billion rubles. The limit of indemnity for one event is 480 million rubles. The liability of Ingosstrakh is reinsured under an obligatory contract for reinsurance of technical risks dated 2008.

The second stage of the project regarding work at the facilities financed by extrabudgetary (invested) funds, was insured by Ingosstrakh in spring 2009 under an insurance contract for construction and erection risks and third-party liability insurance. The insured amount is 4.33 billion rubles. The limit of indemnity for one event is not determined. The liability of Ingosstrakh is reinsured under an obligatory contract for reinsurance of technical risks dated 2009.

The cargo district of the Sochi seaport will be located in the interfluve of the rivers Mzymta and Psou of the Adler district of Sochi on the open Black Sea cost.  On the night of December 14, 2009, at the construction site of the cargo port in the mouth of the Mzymta, grade 8-9 waves washed off part of moorage pilework, construction machinery, piles and sheet piles prepared for installation.