ALROSA Increases Insurance Cover for the Group; Includes New Heads in the Policy

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ALROSA Increases Insurance Cover for the Group; Includes New Heads in the Policy

ALROSA recently entered into a new one-year insurance contract with the SOGAZ Group. The new insurance cover for ALROSA and its eight subsidiary companies amounts to RUB 674.8 billion – a figure which is “significantly higher” than in previous years, the Company pointed out.

The property insurance policy which was specifically drawn up for the ALROSA Group covers “movable and immovable property of any kind including underground capital developments, permanent underground shafts, tailings and tailings dams”, ALROSA said. It also covers all kinds of underground machinery, installations and equipment – including improvements made to the property during the cover period. The amount for the property cover has been pegged at RUB 612.3 billion.

“The insurance also covers diamond production,” ALROSA said. “The insurance programme includes all risks.”

Also, the Company noted, that the limit of indemnity for one insurance event for PJSC ALROSA and PJSC Severalmaz is more than twice that in the previous year under the current contract — RUB 24 billion instead of RUB 10.5 billion.

Insurance for machinery and equipment is a new addition in the policy taken this year. “Another important new inclusion is Business Interruption (BI) coverage,” ALROSA said. “This insurance type is widely accepted around the world for indemnification of fixed expenses and loss of profits in case of production halt or accident. The BI coverage sum for the Group totals RUB 62.5 billion.”

Head of ALROSA Insurance Department Akil Zubir commented: “We incorporated the experience of Russian and foreign experts to create this insurance programme. In March of this year the risk engineers from the leading mining industry insurance companies audited Mirny, Aikhal, and Udachny Mining and Processing Divisions. Following the results of the audit, the experts defined possible losses scenarios and recommendations for risk mitigation. These steps led to overall optimisation of the insurance programme.”

Zubir added that reinsurance of the main risks will be done optionally with leading international reinsurance companies such as AIG, Swiss Re, Lloyds, Zurich, Munich Re. He noted that that this approach will guarantee “high reliability of the insurance coverage”.

Apart from the property of PJSC ALROSA the insurance will cover PJSC Severalmaz, JSC Almazy Anabara, PJSC ALROSA-Nyurba, JSC ALROSA-Gas, JSC Vilyuiskaya HPP-3, ALROSA Air Company Limited, JSC NPP Bourevestnik and Heat and Water Supply Enterprise (CSEP).

News Source : gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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