Management’s responsibility the “Discovery” was insured in “Ingosstrakh”. Payment may be largest ever
The liability of the members of the Supervisory Board and Executive bodies of the Bank “FC Opening” in 2017, are insured in “Ingosstrakh”, reports RBC. Payment under this agreement could become the largest in history.
Deputy Director General for external relations of “Ingosstrakh” Ilya Solomatin has confirmed that the company is the insurer of the Bank “FC Opening”, but did not disclose the limit of insurance coverage.
In “Ingosstrah” also said that the introduction of temporary administration of the Central Bank in the Bank is insured. “At the moment, there are no grounds for recognition of the insured event, because the policy describes additional risks”, – said the representative of the company refused to specify, about which the risks in question.
The D&O policy (directors & оfficers) is intended for persons who make the administrative decisions (Directors, heads, chief accountants) or have a power of attorney for management decisions, explained RBC Deputy Director of the Department of insurance, financial lines insurance “Alliance” Vadim Mikhnevich. Normally, one policy covers several insured persons.
The insurance covers the liability of past, present and future Directors and officers.
In practice, this means that even in the case of abandonment by an official of the post policy will cover his wrong actions in that position as policy, and the company continues each year to renew it. Policies of D&O, tend to have large Russian companies, the insurance amount to several billion rubles.
According to the head of financial risk insurance “AlfaStrakhovanie” Andrew Mackenzie, more than half of the banks from top-50 have insurance coverage for D&O. In Russia, banks usually acquire insurance coverage in limits of $ 100 million.
One of the main criteria of the insured event, D&O – court complaint and / or investigation of the actions of the insured. Therefore, rehabilitation may be insured, if it will be presented a claim to the insured.
Central Bank announced on reorganization of “Opening” on August 29. The Bank became the first undergoing financial rehabilitation under the new scheme – with the participation of the Fund the consolidation of the banking sector. While the Central Bank becomes the main shareholder, the mechanism of bail-in (the conversion of funds of lenders in the Bank’s shares) does not apply, the moratorium on satisfaction of requirements of creditors is entered.
September 24, the interim administration “FC Opening” blocked funds from the personal accounts of top managers of the Bank, branch managers and accountants and regional managers. Funds should go to the recapitalization of the Bank.
Earlier, the head of the Central Bank Elvira Nabiullina promised to appeal the payment of dividends to the shareholders of the reorganized Bank “Opening” in the first half. According to her, it can be regarded as the withdrawal of assets from the Bank. The displeasure of the regulator caused by the fact that the leaders of “Discovery” has written himself annual bonuses at the level of previous years, despite the plight of the Bank.
Bank “Opening” in the first half of 2017, ranked seventh in terms of assets in ranking “Interfax-100″.