Insurance coverage

Insurance coverage in RusHydro Group is based on the principles of standardizing the insurance protection system, optimizing insurance coverage, unity of approaches to organizing insurance, and continuity of insurance.

Aims of organizing insurance coverage

• Providing reliable guarantees of compensation for possible losses of RusHydro and its affiliated organizations in the event of situations unfavorable for the Company (insured events) and minimization of the financial resources of the Company aimed at eliminating the consequences of such situations.
• Ensuring the social protection of employees and other persons insured by the Company through a corporate social package using personal insurance mechanisms.
• Reducing the costs of providing insurance coverage by unifying the types of risks insured, taking a unified approach to the selection of insurance companies and reducing the size of insurance premiums paid.
• Reducing the time for payment of insurance compensation upon the occurrence of insured events.
• Improving the investment attractiveness of RusHydro Group by maintaining the guaranteed size of assets through the use of insurance mechanisms.

Choice of insurance companies

The choice of insurance companies is carried out on a competitive basis, taking into account the optimal ratio of price and quality of insurance services. Requirements for insurance coverage conditions are formed on the basis of an analysis of the current risk situation of the Company and analysis of insurance market proposals, social policy and legal requirements.

Types of insurance coverage

In 2019, insurance coverage of RusHydro and its subsidiaries was carried out for the following types of insurance:

• property insurance;
• insurance of construction risks;
• civil liability insurance for damage resulting from defects in construction work, preparation of project documentation and engineering surveys;
• voluntary health insurance;
• insurance against accidents and diseases;
• compulsory third-party liability insurance of a hazardous facility owner for damage resulting from an accident at the hazardous facility;
• vehicle insurance;
• cargo insurance;
• compulsory insurance of civil liability of a carrier for harm to the life, health or property of passengers;
• civil liability insurance of officers and members of the management bodies of the Company;
• general liability insurance of the Company.

The Company makes high demands regarding the insurance of its assets (property insurance against all risks and insurance of construction risks), and, in view of the limited resources of the insurance market in the Russian Federation, it puts forward additional requirements and monitors the reinsurance of its risks. RusHydro Group pursues a policy of openness towards representatives of the foreign insurance community: it annually conducts insurance engineering surveys of the Company's facilities, road shows and negotiations, and fulfills the recommendations of reinsurers.

The reliability of insurance coverage conditions, experience in insurance settlement and accumulated extensive friendly contacts with the global and Russian insurance markets help the Company successfully implement financial and risk management activities.