Commerce & Finance

EXTRACT FROM THE RULES OF VOLUNTARY INSURANCE OF COMMERCIAL AND FINANCIAL RISKS

OBJECT OF INSURANCE

The object of insurance is:

Property interests of the Insurer related to the failure to fulfill the contractual obligations of one of the parties, which caused losses to the other party - the person who concluded the insurance contract;

Property interest of the Insurer associated with the occurrence of losses of the Lender as a result of non-fulfillment of obligations by the Insured (borrower) to the Lender under a loan (credit) agreement;

INSURANCE RISKS, INSURANCE EVENT AND VOLUME OF INSURER’S OBLIGATIONS

Insurance risk is an expected event, which is insured in case of occurrence.

An event considered as insurance risks must have signs of probability and randomness of its occurrence.

The risks of the insured persons arising from the bankruptcy of their debtors or the inability (other than insolvency) of their debtors to pay their debts within the terms agreed by the parties:

Risks of losses by the insured persons associated with interruptions in the course of their activities or a decrease in the volume of their business activity:

Risks of losses by the insured persons associated with the occurrence of unforeseen costs.

Deposit risks – the possibility of non-payment of a bank deposit (deposit).

Investment risks – risks of devaluation of investments as a result of actions of management bodies and government authorities.

Banking risks:

damage from deliberate acts committed by any employees of the bank, either alone or in collusion with other persons, with the aim of causing damage to the bank or acquiring illegal financial gain for themselves; losses from damage (death, disappearance), breakage in the premises of the bank of valuable property belonging to the bank or its client; losses from lost of valuable property during transportation; losses from forgery or deliberate alteration of documents; damage incurred by the bank as a result of operations (work) with securities; damage from acceptance by a bank as a means of payment of a counterfeit banknote or coin of any country in the world, provided that the standard currency authenticity detectors used by the bank could not detect a fake and that banknotes (coins) have not gone out of circulation; losses resulting from illegal actions of third parties.

Risks of borrowers - non-fulfillment by the Insured of obligations under the loan (credit) agreement.

An insurance event is an event that has taken place, provided for by the insurance contract, upon the occurrence of which the Insurer's obligation arises to make an insurance payment to the Policyholder.

For this type of insurance, the insurance event is:

Losses of the Insurer (full or partial loss of income, additional expenses) caused by non-fulfillment (improper fulfillment) of contractual obligations by the counterparty of the Insured in the manner and terms stipulated by the contract (agreement) between them (non-payment for goods, work or services; non-delivery of goods or products; non-performance of work, etc.);

Losses of the Creditor of the Insured as a result of:

Nonredemption (non-payment) by the Insured the amount of the missing down payment of the loan (credit);

Non-fulfillment by the Insured of obligations under the loan agreement within the time period established by the repayment schedule.

Liability of the Insurer under clause 4.3.1 of these Rules occurs if the insurance event occurred as a result of:

Bankruptcy of a debtor - legal entity confirmed by a decision of an economic court or an official declaration of bankruptcy by the debtor upon its voluntary liquidation.

Non-fulfillment (improper fulfillment) by the debtor of its obligations to the Insured within the period and volume established by the contract (agreement) for reasons beyond the debtor's control and in the absence of deliberate actions on his part aimed at non-fulfillment of obligations, as well as negligence in the actions of its personnel (force majeure circumstances, other events not classified by these Rules and the current legislation of the Republic of Tajikistan to events to which insurance protection does not apply) that occurred during and at the place where the debtor fulfilled obligations to the Insurer.

Suspension of production (activity) of the debtor for a long period (more than one month) due to an accident, fire, explosion, natural disasters, which did not allow him to fulfill his obligations under the contract (agreement) on time and properly.

Death of the debtor - an individual, occurring during the validity period of the insurance contract for any reason, except for the cases listed in subparagraphs 3.6.1 - 3.6.4 of paragraph 3.6 of these Rules.

а) for goods: 

violation of the terms of delivery of goods; non-delivery or short delivery of goods; non-compliance of the actual quality of the goods with the quality certificate agreed in the contract, state standards or other documents confirming the quality of the goods; refusal to pay for the goods under the concluded contract; violation of the terms of payment for goods under the concluded contract.

b) to invest in securities:

untimely (more than two months overdue) payment of dividends (interest from the nominal value) on the acquired securities;  refusal to pay dividends without legal grounds (if there is no confirmation by the minutes of the meeting of shareholders of the decision on non-payment of dividends, etc.);  insolvency of the emitent of securities at the time of payment of dividends;  bankruptcy or voluntary termination of activities of the emitent of securities without compensation to the Insured for the amount of the nominal value of the purchased securities;

c) for deposits:

untimely (overdue over one month) payment of annual interest on the deposit;  refusal to pay annual interest on the deposit without legal grounds (in cases where the deposit is not arrested at the request of the authorities, the bank's activities have not been suspended, etc.);  suspension of the bank’s activities by order of the National Bank of the Republic of Tajikistan;  bankruptcy or voluntary termination of the bank’s activities without compensation to the Policyholder of the amount of the deposit. 

d) for settlements on interbank clearing:

untimely provision of clearing.

 

Liability of the Insurer under clause 4.3.2 of these Rules occurs if the insurance event occurred as a result of:

Death of the Insurer (individual or individual entrepreneur);

Establishment of disability of 1 or 2 group for the Insured (individual or individual entrepreneur);

Declaring the Insurer bankrupt on the basis of a court decision (legal entity or individual entrepreneur) that has entered into force;

Occurrence of force majeure circumstances, that is, extraordinary and unavoidable circumstances under the given conditions caused by natural disasters: lightning strike, earthquake, hurricane (storm), flood, mudflow, landslide, rock collapse, flood, groundwater outflow;
For this risk, a waiting period of 15 (fifteen) calendar days is established from the date of the non-fulfillment by the Insured of obligations under the loan agreement.

Insurer’s inability to meet its obligations due to losses incurred due to the loss/complete destruction of property that is the subject of pledge, as a result of fire, explosion, lightning strike, fall of manned aircraft or their parts, natural disasters, illegal actions of third parties.

Total destruction of property means the destruction of property, in which an independent expert with the appropriate license will establish the inappropriateness of restoration repairs, and the cost of restoration repairs will exceed 80% of the actual value of the property as of the date of the occurrence of insurance event.

The property in the Contract means the property specified in the pledge agreement concluded by the Insured with the Beneficiary. The contract may provide for both of those specified in clause 4.3.2. of these Insured Event Rules, and each of them separately.

Under the insurance contract, upon the occurrence of an insured event, the Insurer shall also indemnify:

Income not received by the Insurer (full or partial compensation for loss) as a result of non-fulfillment (improper fulfillment) of contractual obligations by the counterparties of the Insured for the reasons provided for by these Rules;

Additional expenses for reducing losses caused by an insurance event.