Since 2007, RusHydro has provided liability insurance for the members of the Board of Directors and the Management Board, as well as for the persons in the capacity of sole executive bodies at the Company’s subsidiaries and branches and for those managing the Company’s units and subsidiaries. In a tender to select a provider of directors and officers (D&O) civil liability insurance for 2018, JSC SOGAZ was chosen based on its ability to provide the most reliable and comprehensive coverage when it comes to this type of insurance. The insurer selection process complied with the requirements of the Company’s by-laws and Federal Law of the Russian Federation No. 223-FZ On Procurement of Goods, Works, Services by Certain Types of Legal Entities dated July 18, 2011.
The amount of coverage is RUB 10,604,715,160 (USD 178,100,000 at the rate of the Bank of Russia as at July 31, 2017). In addition, the independent directors’ liability is insured for RUB 136,950,280 (USD 2,300,000 at the rate of the Bank of Russia as at July 31, 2017). The insurance premium amounted to RUB 13,552,825.97 (USD 227,611.80 at the rate of the Bank of Russia as at July 31, 2017).
The insurance policy covers:
- property interests of the insured related to other persons’ claims for damages arising from the insured person’s claimed (alleged, supposed) wrongdoing (error, omission, improper performance, etc.);
- property interests of the Company and/or any subsidiary related to any claims made by other persons that were initially brought against the insured;
- property interests of the Company and/or any subsidiary related to any claims in respect of securities brought against the Company and/or any subsidiary.