OREANDA-NEWS. August 5, 2011. "VSK"  Insurance Company has effected the final installment in connection with the fire in the production building for semi-finished products of "Concordia" factory, Kaliningrad, the affiliate of Miratorg- the biggest Agribusiness Holding of Russia.

By way of  losses settlement in connection with  production interruption within the period January through May , "VSK" Company paid off insurance indemnity in the amount of RUR  448,2 million. Earlier the company paid out RUR 1001, 8 million to the insured party for the building, commodity stocks located in it, furniture, inventory and office appliances, as well as for client’s losses, connected with economic activity interruption within the period of June through September. And another RUR 1 billion  was paid for destroyed production equipment and losses connected with economic activity interruption within the period of October through December. Thus, total out payments effected  by Insurance JSC "VSK" made up RUR 2,45 billion, which is the all-time record in the history of the national agricultural insurance.

Production complex "Concordia LLC", located in Kaliningrad region is the biggest in Russia manufacturer of the finished and semi-finished products. It was commissioned end of 2008. The factory had no counterparts in Russia as far as level of production processes arrangement is concerned, as well as standards of sanitary security and technologies applied.  5 modern production lines were launched at the factory to produce more than 100 types of products from different meat types. Apart from meat semi-finished products under trademarks of  Willma and GurMama,  the whole volume of nuggets and half of burgers volume  for all restaurants of "McDonalds" network in Russia and CIS countries was manufactured there.

In June 11, 2010, along 21:30, fire out brake took place in production building. The fire was brought under control in June 12, and its aftereffects were eliminated only in June 17.

As the result of the fire, the production building was totally burnt together with equipment, raw materials and products located in it, being owned by "Concordia LLC". The reason for fire outbreak appeared to be emergency operation on the site of power line.

Asset properties as well as losses in connection with  operational activities interruption for the period of 12 months were insured by Insurance JSC "VSK" to the total sum of RUR 3 billion.

For investigation of accident and damage incurred  ascertaining, surveyor "Cunningham Lindsey Russia", famous on Western insurance market, was invited by "VSK". In the course of insurance event investigation, the most elaborated technical and economical expertise was carried out.

In view of the results of investigation of fire circumstances, the accident was acknowledged to be the insurance event. Loss settlement was carried out in full direct contact with insured party representatives.

The substantial sum of insurance out payments was successfully accumulated on the operational basis and  transferred to the insured party thanks to the reinsurance risks placement among the biggest worldwide reinsurance companies.

Sergey Tsikalyuk, Chairman of the Board of Managers of Insurance JSC "VSK" pointed it out: "This example should be the model of civilized relationship between the insurer and his client. "Miratorg", being a competent insured party, envisaged not only property losses, but the losses due to production interruption as well, and thanks to it they retained the skilled personnel. I would like to wish "Miratorg" the soonest production recovery and new business  successes".

Alexander  Linnik, Chairman of Board of Directors of Miratorg Agribusiness Holding, in his turn declared: "Recovery  on the scheduled date of "Concordia" factory  is one of the strategic objectives of Holding, for this reason final settlement of insurance event with our partner, "VSK" Company is the key milestone in the process of this project implementation. For the moment, recovery works go at full drive, which enables us to say for certain that it will be put into operation in the first half of 2012".