Ingosstrakh’s premium for boats and yachts insurance amounted approx. $1 mln during 8 months of 2006. Taking into account the existing reserves, claims may amount $250,000-300,000 by the end of the year.

In 2006, Ingosstrakh has continued the active development of boats and yachts insurance. In particular, sub-department for river ships and yachts insurance under the P&I department was created. Its specialist had elaborated the special rules for yachts insurance. The rules were adopted for the particular target audience – yachts owners. Secondly, they help to elaborate the most optimal package, tailored for client’s needs, proceeding from the list of possible risks. For non-professionals marine insurance was always very hard terminologically and technologically. Had thought over and simplified the rules, used to insure commercial ships of corporate clients, Ingosstrakh made the procedure for small ships insurance more simple and comprehensible for private client. The rules describe the range of procedures, such as acceptance of ship for insurance, claim investigation, actions of policyholder at the insurance loss. Rules also include thorough description of risks covered and exceptions.

Today, Ingosstrakh is the only company, which can offer boats and yachts insurance of such level. The thing is that our company is the most experienced Russian marine insurer and the unique organization in Russia and CIS, possessing almost 60-years experience in marine insurance.

By the words of Nikita Minin, Ingosstrakh Chief of sub-department for river ships and yachts insurance, “during the elaboration of the yacht insurance technology, we used the best from the foreign experience and practice of the classical ship insurance in Ingosstrakh. We considered the practice of such countries as England, Switzerland, and Germany.”

Company had elaborated and offers the complex program of boats and yachts insurance, including coverage of risks, such as loss and damages to the ship during its operation and storage, yacht owner third-party liability (in result of crashes/navals, environment pollution, damages to third parties’ life/health, etc). Moreover, yachts can be insured for the period of transportation and construction. The insurance cover can be provided worldwide, if necessary.

Company had also launched a unique program for insurance of hydro cycles (scooters) in Russia in summer 2006. It is well known that more and more scooters are operated in Russia from year to year. They are quite simple to operate and are popular as the means of private marine transport. Till recent time the scooters insurance was not provided by any of the Russian insurers due to the specifics of objects and the character of their operation.

Moreover, Ingosstrakh launched the yacht-clubs liability cover program for stored yachts. The largest yacht-clubs in Moscow, St. Petersburg and other Russian cities, in particular, Crocus City, Vodnik, Aurora, MRP, New Shore have shown their interest in the program.

This year, Ingosstrakh has advanced its cooperation with dealers and construction docks, in particular with Concept-Marine (famous brands’ dealer), Royale Marine (Doral dealer), Bavaria Yachts (official distributor of Germany-based Bavaria Yachbau) and construction dock Lucky Verf.

Ingosstrakh extends its participation in the different yachting activities. Ingosstrakh acted as general insurance partner of the Second Moscow Yacht Festival in 2006.

Nikita Minin, Ingosstrakh Chief of sub-department for river ships and yachts insurance, declared that “by our experts’ estimations, today only 10% of Russian ship owners insure risks of their yachts. The approximate capacity of the Moscow and Moscow region market, embracing up to 80% of country’s yachting, does not exceed $10 mln, by our estimates. This year, we register the growth of demand for yacht insurance policies. Only during 1H06, Ingosstrakh collected premium, exceeding the FY05 premium in this business. There is quite a serious growth potential in this segment.”

Today, not only Ingosstrakh's financial strength and solvency, but also an experience in claim settlement are the main competitive advantages in this segment. Ingosstrakh possesses unquestionable advantages, especially in abroad claim settlement. For example, in case when yacht costing $1-2 mln can damage the pierce in the foreign port. As result of such actions, the yacht can be arrested, and yachtsman might look for lawyer’s services. Ingosstrakh appoints surveyor for damages appraisal, organizes legal support and rehabilitation works – the company can provide such services in one working day upon client’s application.

As a rule, Ingosstrakh indemnifies the losses in two ways. Company pays claim directly to the yacht owner or transfers the money to the company, which repaired the ship. If the client agrees with the independent assessment and the amount of the claim, established by surveyor, the whole procedure of claim settlement takes place in one week.

As for reinsurance, the part of accepted risks is transferred abroad under one-year automatical reinsurance treaty. The risks over the limit are shared with other largest Russian and western companies.

Ingosstrakh operates in P&I insurance for almost 60 years. Today, company provides hull and ship owners liability insurance to over 3,200 ships. Company offers hull insurance without any limitations in the insurance sum. During last years, the insurer is proactively develops yacht insurance direction, where the company occupies the leading positions in Russia. Company had elaborated the program to protect yacht and boats owners, yacht-clubs, constructors and dealers interests.

Company’s clients in marine insurance include largest shipping companies – Primorie, Novorossisk, Volga, North-Western, Lithuanian shipping companies, Fedcomshipping, Kaalbye Shipping, Midland Shipping, Volgotanker, and Priamos.

By 2005 operating results, the amount of collected premium in direct marine insurance was Rub 1.557 bln, Rub 288 mln over the 2004 indicator (23% growth). Last year, company paid Rub 605 mln of claims in marine insurance classes.

Historical background

It is interesting, that the first mention about insurance is the notes-obligations, justifying agreements between antique merchants over the mutual help in the case of pirates’ capture of their ships (boats). Sea perils (loss, capture) for large ships, which transported expensive cargos, made ship owners to envisage economical losses. Indeed, in marine business the insurance developed and became regular quicker that in any other businesses. Especially, after the America’s discovery, when the navigation become an integral part of the global economy.

OJSIC Ingosstrakh (www.ingos.ru) operates in international and domestic insurance market since 1947. The company is one of the leaders in the amount of premium from voluntary non-life insurance.

Ingosstrakh has been rated by Standard & Poor’s (ВВ+/Stable, or ruAA+ on the Russian scale), Moody’s Investors Service (Ba2/Positive), Moody’s Interfax Rating Agency (Aa2.ru and RUS-1 on the national scale), and Expert RA (A++).

Total amount of direct insurance and reinsurance premium collected by OJSIC Ingosstrakh, IC Ingosstrakh-M Ltd, and IC Ingosstrakh LMT Ltd for 2005 amounted to Rub 30.9 bln, 53.8% more than in 2004. Claims settled accounted for Rub 13.9 bln. Assets increased 30.4% and totaled Rub 33.1 bln. Equity capital – Rub 6.5 bln as of January 1, 2006.

Ingosstrakh is licensed to perform all twenty insurance classes (insurers’ specialty), stipulated by Article 32.9 of Insurance Law and reinsurance. Company has branches in 182 Russian cities, and over 15 offices and subsidiaries in neighboring and other foreign countries.