ALROSA plans for an integrated asset insurance program

ALROSA plans to implement an integrated asset insurance program. At the close of the tender, the company will sign a one-year insurance contract with the SOGAZ Group. The insurance program covers all ALROSA’s main structural subdivisions and 11 affiliates. All property will be insured for RUB 676.8 billion against all risks and at the replacement cost.

According to Akil Zubir, the Head of ALROSA Insurance Division, the insurance program corresponds to the world’s best practices in insurance and risk management. “Previously, structural subdivisions and affiliates insured separate assets and property independently, under different terms and conditions and at the residual value. Over the past two years, the company has developed a unified approach to asset insurance. During 2016-2017, a comprehensive risk assessment was carried out for all major assets and an integrated insurance program was developed to cover all assets of ALROSA and 11 affiliates of the Group. The program provides for a unified approach to insurance against all risks and assessment of damage at the replacement cost. It brings the Company’s insurance coverage to a whole new level,” says Akil Zubir.

Buildings and structures, machinery and equipment, specialized vehicles, transport facilities, inventories, and assets under construction are subject to insurance. The insurance program also covers capital mining operations, including underground mines. The property will be insured against the risk of loss and damage for various reasons. The aggregate insurance coverage is limited to RUB 676.779 billion.

Apart from the property of structural subdivisions of PJSC ALROSA, the insurance program will cover PJSC Severalmaz, JSC Almazy Anabara, JSC Nizhne-Lenskoye, PJSC ALROSA-Nyurba, JSC Geotransgaz, Urengoy Gas Company LLC, JSC ALROSA-Gaz, JSC Vilyuiskaya HPP-3, JSC Air Company ALROSA, JSC Research and Production Enterprise Bourevestnik, and LLC PTVS (Heat and Water Supply Enterprise).