⭐ Bankruptcy of insurance organizations - bankruptcy of an insurance company

1. Where to go if the victim’s insurance company is bankrupt?
2. Where to go if the at-fault party’s insurance company has closed? 2.1. How to contact the Russian Union of Insurers?

3. List of insurance companies that have been declared bankrupt for 2021

Fortunately, today, if the insurance company that insured you or the culprit under compulsory motor liability insurance closed down: it turned out to be bankrupt or its license was revoked, then you will not be left with anything. What to do and where to go if the insurance company is declared bankrupt or its license has been revoked? Do I need a special set of documents for this and how long to wait for payment? Let's answer these questions in all possible cases.

Three unpleasant things can happen to the insurance company that insured your auto liability:

she may be declared bankrupt by an arbitration court,
the insurance company's license may be revoked,
the company may be excluded from the direct indemnity agreement (DIA).

In the first two cases, the insurance company is closed. And in all these cases, the procedure for receiving payment under compulsory motor liability insurance is almost the same. Only the exclusion from the PES agreement may not bother you if, according to the law, you are not applying under the PES.

Legislative norms for regulating the insolvency of insurers

Federal Law No. 127-FZ of October 26, 2002, with subsequent amendments, regulates the procedure for conducting bankruptcy procedures. The law is called “On Insolvency” and deals with issues related to the financial insolvency of enterprises and individuals unable to pay their obligations to creditors. Insurance organizations are discussed directly in Chapter XI, which is devoted to the characteristics of certain categories of enterprises.

The grounds for initiating bankruptcy proceedings are given in Article 183.6. To initiate an insolvency case for an insurance company, one of the following reasons must exist:

debt in the amount of 100 thousand rubles or more;
the period of existence of outstanding obligations is at least 14 days;
the total amount of debts exceeds the value of the organization's assets.

Additional conditions for insurance institutions are given in Article 184.1 of the specified Federal Law:

failure to fulfill obligations to pay policyholders, untimely or improper fulfillment of their obligations;
repeated violations during the year of laws regulating the financial activities of insurers;
revocation, suspension or restriction of the license.

General rules of activity are regulated by the Law of the Russian Federation of November 27, 1992 N 4015-1 “On the organization of insurance business in the Russian Federation,” including the rules of supervision and control in this area of activity.

The insurance company of the person at fault for the accident has gone bankrupt – what to do?

The first step is to find out how you will apply for insurance compensation:

to your insurer in the order of direct compensation for losses (DLP); the conditions for the PES are specified in Article 14.1 of the Law on Compulsory Motor Liability Insurance;
to the culprit's insurer for insurance payment.

According to paragraph 2 of Article 12 of the Law on Compulsory Motor Liability Insurance (OSAGO), you will apply to the insurer that insured the liability of the tortfeasor for insurance compensation in connection with damage to life or health.

If you have not insured your liability and you do not have a compulsory motor liability insurance policy, then you are also at fault with the insurance company.

If your case falls under the second point, then you will have to contact the Russian Union of Auto Insurers (RUA) for insurance compensation.

In this case, the payment will be called “compensatory”. A complete list of those persons who are entitled to receive compensation payments, and the conditions under which it will be made, are given in Article 18 of the Federal Law on Compulsory Motor Liability Insurance.

The procedure for applying is almost no different from applying to an insurance company - the same set of documents, the same inspection of the vehicle, the same terms for payment.

At the same time, in the case of RSA, only payment is made, no repairs should be made. However, in practice it happens that RSA instructs some insurer to settle a loss on behalf of RSA and they send it for repairs, as in a regular insurance case; this is incorrect and does not comply with the law on compulsory motor liability insurance.

The procedure for resolving disputes is more understandable and pleasant for drivers - examination, pre-trial claim and lawsuit. There is no need to contact a financial ombudsman.

True, from the “pleasant bonuses” you can only get a penalty. RSA does not pay fines, financial sanctions or moral damages.

The RCA website contains a list of companies for whose obligations the Union of Auto Insurers will make compensation payments in 2021.

Can I contact my company?

If your insured event falls under the PWI, then you not only can, but are obliged to contact your insurance company exclusively.

If the conditions for the PES are not met, and the culprit's insurer has had its license revoked or is bankrupt, then your insurer will not be able to help you. You need to contact the Russian Union of Auto Insurers.

An interesting point is that if you managed to contact your insurer, and he made a partial payment, after which his license was revoked, then you have the right to contact the insurance company of the person responsible for the accident for additional payment.

There are cases when all participants in an accident have the same insurance company, which is declared bankrupt, then, of course, you must immediately contact the RSA for payment. But it is important to remember that RSA does not have a branch in every city, and you will most likely have to apply by mail to one of the representative offices in your federal district.

Classification of types of insurance

The Law on Insurance provides a classification of available types of insurance. The main distribution criterion is the type of insured object. In total, the law provides for 24 types. All of them can be grouped into the following groups:

property, i.e. protection of property of legal entities and individuals from all kinds of risks;
liability that protects the interests of third parties, for example, OSAGO;
personal (medical, pension, life and health insurance);
other risks (business, financial).

This is also important to know:
Stages of bankruptcy of an individual

In addition, insurance is divided into voluntary and compulsory.

What causes insurance companies to go bankrupt?

In most cases, insurance is a profitable and profitable business. Most often, the bankruptcy of such institutions has subjective reasons, for example:

fraudulent schemes on the part of insurers or collusion with clients;
unjustified dumping actions (reduction of insurance premiums while increasing the level of payments);
incorrect determination of the level of risks when concluding contracts due to poor training of employees or as a result of intent;
excess of the level of payments over income as a result of insufficient capital with a significant number of payments for insured events.

Sometimes bankruptcy occurs for objective reasons, for example, due to the occurrence of natural or technical disasters or other force majeure circumstances.

When can an insurance company make a recourse claim?

According to the rules of insurance under compulsory motor liability insurance, regulated by the Federal Law “On Compulsory Motor Liability Liability Liability Liability Insurance”, insurance companies have serious grounds for presenting recourse to the culprit of the accident.

We list the violations when the insurance company will assign compensation for damage to the driver who caused the accident.

Intentional infliction of harm to the life or health of the victim.
The driver was driving while intoxicated.
The driver refused to be tested for intoxication.
The driver did not have the right to drive (no license at all, did not have the required category of license, or he was deprived of his license).
The driver fled the scene of the accident.
The driver was not included in the MTPL insurance.
The accident did not occur within the period of use specified in the policy (if insurance was purchased for not a full year, i.e. with a limited period of use of the car).
The person at fault for the accident did not provide the vehicle for examination or began repairing it earlier than 15 calendar days (except for non-working holidays) after the accident.
The car has not passed inspection. Only for passenger taxis, buses, trucks for transporting people and vehicles for transporting dangerous goods.
The car did not pass inspection and the cause of the accident was a technical fault.
When concluding the MTPL agreement, false information was provided, which led to a decrease in the cost of the policy.
The culprit of the accident used a car with a trailer, and the trailer is not included in the compulsory motor liability insurance (it does not apply to trailers of citizens for passenger cars).

Thus, if the culprit of the accident committed violations from the list, the insurer has the right to demand from him compensation for the expenses that the company paid to the injured party.

Features of bankruptcy of insurance organizations

Basically, a standard bankruptcy scheme is used for all enterprises. There are certain features regarding insurance companies as financial institutions. When initiating the procedure:

a temporary administration is introduced, for which enterprises operating in the same field and having the appropriate license are attracted;
the sale of assets is carried out with the participation of appointed managers;
payments under existing contracts are terminated.

Policyholders and insurers' creditors need to know that:

all claims are accepted within a month from the date of publication of information about bankruptcy;
in case of declared bankruptcy proceedings, the period for accepting claims is 2 months;
if the company does not go bankrupt, but follows the path of recovery procedures, then claims of creditors can be presented during the recovery period;
all obligations are divided into current and registered, and current payments are made first.

Creditors need to declare their claims and find out the prospects for receiving insurance payments or the conditions for the further validity of the insurance contract.

What to do to receive payment under OSAGO

If a corresponding insured event occurs and you have to contact the insurer, but it goes bankrupt, you must proceed as follows.

If the license is revoked, then you need to contact the Russian Union of Auto Insurers for money.

To do this, you need to prepare the following package of documents:

A certificate of accident is required.
If a protocol on administrative offenses was drawn up, a copy of it must also be included in this kit.
We need a ruling on a violation case.
It is required to provide the text of the insurance contract with the previous insurer.
The incident caused damage and should have been independently assessed. The document must be provided when applying to the RSA.
A copy of the vehicle registration certificate is required.
Passport as a document that proves identity.
Driver's license required.

After submitting documents, the legislation gives 30 days to consider this issue.

Not only a positive decision can be made. If there was a refusal to pay or only part of the amount was provided, it is necessary to sue the RSA.

If a CASCO agreement was previously concluded, in this situation the most reasonable step is to go to court. It is better if this is done as quickly as possible. It is easier to receive compensation while the company that has lost its license still has money in its current account.

Initiation and stages of bankruptcy

To declare a company bankrupt, you must file a claim in court.
This can be done by a creditor of an organization, a professional association, the Bank of Russia, as well as the insurance company itself, which is subject to the requirements of the insolvency law. The arbitration court begins the process if:

a statement of claim drawn up according to the rules;
documentary applications confirming the information set out in the claim;
payment of state fees and legal costs.

This is also important to know:
Bankruptcy of individuals: step-by-step instructions, changes in the procedure and procedure in 2021

Before submitting an application to the court, an announcement is submitted to the media with a warning to creditors.

All processes related to insurance authorities are controlled by the Bank of Russia.

Insurance organizations go through the following stages:

observation for a period of up to 7 months, during which activities continue as usual, except for the free disposal of funds and profits by the owners of the enterprise;
measures to prevent bankruptcy within six months, during which a temporary administration is appointed;
bankruptcy proceedings with the appointment of a manager and determination of the order of repayment of debts to creditors for a period of 6 months to 1 year;
declaration of bankruptcy and exclusion from the register of legal entities.

The main feature is the absence of stages of financial recovery and external management in accordance with Art. 183.17 Federal Law “On Insolvency”.

Procedure for going to court

In the event of bankruptcy, it may be necessary to file a claim in court. Here is the recommended sequence of actions for such cases.

First you need to estimate the losses. This must be done by conducting an independent assessment.
After this, you need to submit documents to the insurance company.
Then you need to file a pre-trial claim.
After this, a claim is filed in court.
Next, you need to file a petition with the court, which requests the seizure of the company's money and property.
It is necessary to take all available measures to reduce the time during which the case is considered.

The latter is very important in light of the fact that the money and property of a bankrupt company can be quickly spent, since there are other debtors who want to receive the payments due to them.

Of course, the court’s verdict and the speed of the process will be decisively influenced by convincing evidence and correctly executed documents provided by the plaintiff.

Various options for going to court

You can take advantage of the opportunity to go to court not only for bankruptcy consideration. It is permissible to file a claim in a court of general jurisdiction. The basis for this may be the Consumer Protection Law.

It can be done:

at the place of registration of the plaintiff;
where the insurance company is located;
at the location of its branch.

Another way to receive money is to apply to the Arbitration Court. The subject of consideration is the compilation of a register of debtors. As a result, the bankrupt's assets will be sold, the funds received and those held in bank accounts will be paid to creditors in accordance with what is determined by law.

When applying, you must provide documents confirming that the bankrupt insurance company must make a payment. Photo: unilas.com

A decision of a court of general jurisdiction recognizing obligations can be used as a basis. If it is not there, then factual documents are provided that can serve as justification.

If the court makes a positive decision, the policyholder will be included in the register of creditors and will have the right to receive payment in the order determined by current legislation.

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Another option is that in some cases you can sue the person at fault for the accident in order to obtain compensation from him. This will not solve problems with the insurance company, but it will mitigate the consequences of non-payment of insurance. Of course, the court can make either a positive decision in this case or refuse to receive compensation from the person responsible for the accident.

Once again, you can learn about the procedure in case of bankruptcy of an insurance company from this video:

Rules for filling out a statement of claim

The basic requirements for filing a claim are no different from other organizations. Mandatory points that must be contained in the claim:

the name of the court authorized to consider this issue;
the name or title of the plaintiff, indicating the address and other contact information;
title of the document “Statement of Claim for Declaration of Bankruptcy”;
description of claims indicating the amount of financial claims;
listing of evidence and pre-trial correspondence with the organization.

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The conclusion once again indicates the claims and demands, and also lists the attached documents.

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If the statement of claim is filed by the organization itself or its controlling body, then the full amount of the debt is given, including budget payments.

Developer liability insurance. Insurance payments in case of bankruptcy of a developer

Despite the exceptional importance of timely receipt by citizens of the housing promised to them by developers, the modern process of construction of apartment buildings is accompanied by numerous risks - from the economic situation in the country, which affects the price level of goods and services necessary for construction, to bureaucratic delays in obtaining permits for putting objects into operation in level of local authorities. All this generally negatively affects the ability to provide housing for the population.

In this regard, mandatory measures are established at the legislative level to ensure that developers ensure their obligations. In particular, the Federal Law of December 30, 2004 No. 214-FZ “On participation in shared construction” (hereinafter referred to as Law No. 214-FZ) until recently provided for two mandatory ways to ensure the fulfillment of the obligation to transfer residential premises:

Pledge (recognition of the land plot provided for the construction of an apartment building, and the apartment building itself being built on it, as being pledged to shareholders).
Guarantee or insurance agreements are at the choice of the developer.

It is important that the first and second security options acted only together, and the developer could only choose from the second two methods.

On July 30, 2021, the Federal Law of July 29, 2017 No. 218-FZ “On a public law company for the protection of the rights of citizens - participants in shared construction in the event of insolvency (bankruptcy) of developers and on amendments to certain legislative acts of the Russian Federation” (hereinafter referred to as – Law No. 218-FZ), according to which, instead of insurance and guarantees, the state compensation fund, formed from mandatory contributions from developers, will guarantee the fulfillment of obligations by developers. This compensation fund will replace voluntary liability insurance for developers, which will now be in addition to mandatory contributions to the fund.

Due to the fact that, for certain reasons, the contracts for shared participation in construction concluded so far are secured precisely by insurance contracts, we will consider the most important elements of the design of such contracts, the procedure for receiving insurance compensation, as well as the main changes in the legal regulation of this issue.

Parties to the developer's liability insurance contract

An insurance contract for liability for non-fulfillment or improper fulfillment of obligations to transfer a shared construction project is concluded by the developer (the policyholder) and an insurance company that has a number of mandatory characteristics (carrying out insurance activities for at least five years, having at least one billion rubles of own funds, at least 120 million rubles of authorized capital, the absence of instructions from the Central Bank of the Russian Federation on non-compliance with requirements for ensuring financial stability and solvency, etc.), compliance with which was strictly checked by the Central Bank.

Civil liability insurance of the developer for failure to fulfill or improper fulfillment of his obligations to transfer residential premises under the contract is carried out in favor of the beneficiaries - participants in shared construction.

The beneficiaries under the insurance contract are citizens or legal entities (with the exception of credit institutions), whose funds were raised in accordance with Law No. 214-FZ for the construction of a shared construction project under an agreement providing for the transfer of residential premises. It is allowed to replace the beneficiary specified in the insurance contract with another person in the event of assignment of the right of claim under the contract with notification of this to the insurer in writing.

Insurance case

An insured event is the failure or improper fulfillment by the developer of obligations to transfer residential premises under the contract, confirmed by:

— a court decision to foreclose on the collateral in accordance with Law 214-FZ;

- a decision of the arbitration court to declare the debtor bankrupt and to open bankruptcy proceedings, as well as an extract from the register of creditors’ claims on the amount, composition and order of satisfaction of the claims.

Duration of insurance

The insurance contract is considered concluded from the date of state registration of the agreement for participation in shared construction and is valid until the deadline stipulated by such agreement for the transfer of residential premises by the developer to the participant in shared construction. In this case, the beneficiary retains the right to receive insurance compensation for an insured event that occurs within two years after the expiration of the period for transferring the residential premises provided for in the agreement for participation in shared construction.

Sum insured

The minimum insured amount under an insurance contract, within which, upon the occurrence of an insured event, the insurer will have to provide insurance compensation, is calculated based on the price of the contract and cannot be less than the amount calculated based on the total area of the residential premises to be transferred to the participant in shared construction, and the average market the cost of one square meter of housing in the constituent entities of the Russian Federation, determined by the Ministry of Regional Development of Russia on the date of conclusion of the insurance contract ( for example, in the 3rd quarter of 2021, the cost per square meter was 90,400 rubles / sq. m. in Moscow and 54,479 rubles / sq. m. . in the Moscow region).

Payment procedure

The procedure for insurance payment when insuring the developer's liability is regulated by the insurance contract and insurance rules, which are approved by the insurer and are an integral part of the insurance contract.

A participant in shared construction (beneficiary) must contact an insurance organization or a mutual insurance company (OVS) within the limitation period when foreclosure on the subject of pledge in accordance with Law 214-FZ or before the completion of bankruptcy proceedings against the developer, presenting a court decision accordingly on foreclosure of the collateral or a decision of the arbitration court declaring the debtor bankrupt.

Federal Law No. 286-FZ dated November 29, 2007 “On Mutual Insurance” stipulates that payment of insurance compensation to the beneficiary must be made within a period not exceeding thirty days from the date of submission of documents by the beneficiary, regardless of the existence and amount of the company’s debt to pay the insurance premium.

Compulsory insurance applies only to new objects, the first share participation agreement, under which was concluded after 01/01/2014. The developer is obliged to inform shareholders about the presence or absence of security for their obligations provided for by law.

Does Builders Liability Insurance Really Work?

A change in legislation that abolishes the mandatory liability insurance of developers for failure to fulfill or improper fulfillment of their obligations to transfer a shared construction project indicates the ineffectiveness of this type of protection of the interests of the parties.

In particular, among the reasons for such inefficiency, experts cite the inability to assess the real financial condition of a construction company, obtain reliable reports on the activities of the developer, and therefore adequately predict the risks assumed by the insurer. At the same time, insurance companies included in the list of the Central Bank, due to the mandatory procedure, still attract developers and collect insurance premiums, although neither at the business level nor at the government level is there confidence in the real ability to make payments for all insured events that arise. Small companies are even more theoretically unable to cope with the load. One or two insurance cases with a payout amount of several billion rubles are enough for the insurance companies that are most active in this market to cease to exist with a high degree of probability. The established mechanism worked only due to the lack of massive payments under insurance contracts: protracted legal proceedings can drag on longer than the duration of the contract, and shareholders ultimately do not receive their payments.

Another issue related to the effectiveness of the existing order is, in fact, providing shareholders with housing instead of returning their invested funds. Having received insurance compensation from the insurer (not always equal even to the invested funds), the beneficiaries become owners of a completely different amount than they invested several years ago. That is why it is always more profitable for a shareholder to wait until construction is completed and receive real estate.

In this regard, undoubtedly, the positive innovation of Law No. 218-FZ is that the task of the created Fund for the Protection of the Rights of Citizens - Participants in Shared Construction, along with paying compensation to citizens, is also to support developers to complete construction (Part 1, Article 3 Law No. 218-FZ).

How to receive insurance compensation in case of bankruptcy of a developer: step-by-step instructions

In Russia, arbitration courts annually declare many developers bankrupt. A few bankrupt developers, when concluding agreements for participation in shared construction, made contributions to the Fund for the Protection of the Rights of Participants in Shared Construction. A significant part of bankrupts insured their civil liability with insurance companies under the old legislation, which means that if such a developer goes bankrupt, shareholders can receive insurance payments.

As we noted earlier, declaring the developer bankrupt and opening bankruptcy proceedings against him is an insured event for this type of insurance. At the same time, in order to receive insurance compensation, the claims of the participant in shared construction must be included in the register.

To receive insurance compensation, you must contact the insurance company that insures the developer’s liability. The rules for such treatment are posted on the insurance company’s website (each company has its own). As a rule, you will need to fill out an application to receive compensation, as well as provide an extract from the register of claims of construction participants and other documents confirming the purchase of a shared construction project from the developer.

Is it possible to get “insurance” if the developer has not paid the shareholder a penalty for violating the transfer deadline?

No, this “insurance” does not cover the developer’s liability for paying penalties for late transfer of a shared construction project.

What to do if the insurance company refuses to pay the equity holder in case of bankruptcy of the developer?

Unfortunately, insurance practice in Russia shows that many insurers are in no hurry to fulfill their obligations after the occurrence of an insured event. It seems that the main task of the insurer when receiving a claim about the occurrence of an insured event is to find the maximum number of reasons to refuse payment. The number of non-payments can be judged not only by reviews on the Internet, but also by the number of lawsuits regarding the collection of insurance payments.

You can go to court after an application for voluntary payment if the insurer has not made the payment within the period stipulated by the contract or insurance rules. In cases of foreclosure due to the bankruptcy of a developer, the chances of winning the case are high. First of all, because the occurrence of an insured event is easy to prove: its confirmation is the decision of the arbitration court that has entered into legal force to introduce bankruptcy proceedings or to resort to foreclosure of the collateral. However, when going to court, it is important for the shareholder not only to receive the amount of the insurance payment, but also to compensate for his losses: to receive compensation for moral damage, as well as a fine in accordance with the Law on the Protection of Consumer Rights. The amount of amounts awarded to shareholders in excess of the insurance compensation largely depends on the court hearing the case (an individual shareholder can apply to the court at his place of residence). Therefore, before going to court, we recommend that you consult with experienced lawyers.

Since 01.07.2019, a mandatory pre-trial procedure for insurance disputes has been provided: before filing a claim in court against the insurance company, you must contact the financial ombudsman to resolve the dispute.

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Responsibilities of the provisional administration

On the initiative of the Bank of Russia or a professional association, after receiving the decision of the arbitration court, a temporary administration is appointed. From the moment of her appointment, the head of this administration performs all the functions of the head of the organization.

The powers of management last from 3 months to six months, but if necessary, they can be extended to 9 months by sending an application (petition) to the branch of the arbitration court in which the bankruptcy case is pending.

The main task of the administration is to improve the organization’s work and prevent possible bankruptcy. During this period, all documentation comes into the possession of the new department, an audit of the financial condition is carried out, and its results are sent to the control body.

Based on the results of the analysis, a decision is made on a more in-depth check of how managers fulfill their obligations and the development of measures that can prevent bankruptcy.

If it is not possible to correct the situation, then the temporary administration is instructed to go to court to declare the insurance company bankrupt.

The insurance company has been declared bankrupt - what does this mean by law?

To answer this question, let us turn to a special legal act, namely the Federal Law on Bankruptcy.

The definition from this law reads:

Insolvency is the inability of the debtor, recognized by the arbitration court, to fully satisfy the claims of creditors for monetary obligations, for the payment of severance pay and (or) for the payment of wages to persons working or who worked under an employment contract, and (or) to fulfill the obligation to make obligatory payments.

In simple words, the insurance company simply does not have the money to pay salaries to employees, repay debts to creditors, and, among other things, pay insurance compensation.

List of bankrupts under compulsory motor liability insurance in 2021

There is no separate list of bankrupts in the field of compulsory motor liability insurance, and therefore you will have to do a little searching for information about a specific insurance company. Please note that we are talking specifically about insolvent organizations, and not about those whose licenses have been revoked.

If there is information that an insurer is recognized as such, then the appropriate information about this can be found in two sources:

Unified Federal Register of Bankruptcy Information,
Bulletin of the Bank of Russia.

On these two resources you will have to use the search, but it is simple and finding the necessary information will not be difficult.

For example, let’s look for the recently bankrupt insurance companies NASCO and ANGARA:

In the Unified Federal Register, the search result for NASCO JSC looks like this:

And SK Angara LLC is like this:

In the Bulletin of the Bank of Russia, the search is performed using keywords in the text, so a link is given to the number of the newsletter in which information about a particular company was published. Thus, it is possible to track on what date a temporary administration was appointed in the company, and when the decision to declare bankruptcy was made. For example, the same ones or NASCO JSC.

Current information on existing insurance companies is presented in the Unified State Register of Insurance Business Entities. Here you can also view all official information about any insurer, including an email address, for sending a statement (pre-trial claim) of a consumer of financial services about the existence of disagreements regarding the insurer’s fulfillment of its obligations under the insurance contract, sent to the financial institution in electronic form.

Bankruptcy prevention stage

During the work of the temporary administration, the necessary steps are taken to restore the normal activities of the organization, eliminate debt and move on to timely repayment of payments and the conclusion of new contracts.

This is also important to know:
Vicarious liability in bankruptcy

The following precautions are used:

financial investments from owners, attracted persons or Bank of Russia;
change in the size of the authorized capital;
organization of property auctions;
reorganization of a company, its merger into another organization through a merger or acquisition;
restructuring of accounts payable, review of the composition of assets and liabilities.

The measures taken are controlled by Bank Russia at the planning and implementation stage.

The stage of financial recovery and its alternative

First of all, it is necessary to consider an innovation that acts as an alternative to financial recovery. This is a warning against bankruptcy of the insurer.

When the management or founders of an insurance company identify a deterioration in their financial performance, the appearance of a negative balance, etc., the inability to fulfill their financial obligations, representatives of the debtor company themselves can take measures designed to prevent the bankruptcy of the insurance company. Such measures include:

additional financial injection (from the management or founders of the company or third parties);
restructuring of the company's assets and liabilities;
reorganization of the company structure (merger, acquisition, etc.);
other measures permitted by the legislation of the Russian Federation.

The management of the insurance company is obliged to draw up an action plan to restore the company's solvency and submit it to the Federal Service for Financial Markets (FSFM). Unauthorized bankruptcy prevention is a violation of the law.

During the implementation of procedures to restore the solvency of the insurer, the FFMS may appoint a temporary administration.

When it comes directly to the stage of financial recovery, there is no need to notify anyone, the same measures are taken, only the process is carried out by a financial manager appointed by the court.

Stage of bankruptcy proceedings

If the bankruptcy of the insurance organization cannot be prevented, then the final stage begins - bankruptcy proceedings.

At this stage, a bankruptcy trustee is appointed, to whose jurisdiction all management powers are transferred.

The actions of the manager last from the date of appointment until the organization is excluded from the Unified State Register of Legal Entities. This period is allotted 12 months, with the possibility of a one-time extension for another 6 months.

All concluded insurance contracts and strict reporting forms confirming their conclusion (policies) are transferred to the management of the manager. The transfer work should be completed within a month.

During its activities, the bankruptcy trustee regularly sends reports on its work, as well as on financial activities, to the supervisory authority.

The actions or inaction of the manager can be appealed by the meeting of creditors of the bankrupt organization.

To repay the debt the following is assigned:

sale of property complex;
sale or transfer of insurance portfolio;
the management of the organization is held accountable;
decisions are made to terminate contracts concluded in violation of insurance legislation.

If necessary, a settlement agreement is concluded with creditors.

Methods for insurance companies to reduce payments

To reduce compensation payments, dishonest insurance companies use one of two methods:

The damaged car is sent for evaluation to an interested expert. The latter deliberately reduces the cost of restoration repairs. The dissatisfied car owner will be told that the compensation was calculated taking into account the wear and tear of the parts. As a result, he will be offered to select similar spare parts and body parts from other, cheaper manufacturers.
The second fraudulent scheme is that the car owner is informed about the presence of damage to the vehicle that appeared a long time ago from other accidents. If the client does not agree with the payment, he will have to resort to an independent examination. It can be done when car repairs have already begun.

Attention! To ensure that the independent examination does not provoke a conflict situation with the insurance company, the owner of the damaged car should arrange a repeat assessment inspection himself before the start of restoration repairs.

The order of repayment of accounts payable

Article 134 of Law No. 127-FZ provides general rules for determining the order of repayment of debts to creditors of a bankrupt enterprise.

In relation to insurance organizations, there are some features that are listed in Article 18.10 of this law.

1. So, first of all, along with regular payments, claims under life insurance contracts concluded for survival to a certain age or term are satisfied, i.e. with elderly people.

2. The second priority is wage arrears to employees, like other enterprises;

3. Special rules are established for the third stage, which provides the following order by type of agreement:

compulsory insurance;
personal insurance;
civil liability agreements;
property insurance;
other creditors.

This is also important to know:
Recognition of bankruptcy of a legal entity in 2021: diagram of the main stages, features and consequences

4. Lastly, penalties and financial sanctions on loans are repaid.

Regardless of the order of priority, creditors must submit an application within a month from the date of initiation of bankruptcy proceedings. Only after this the applicant is included in the register of creditors and receives the right to participate in the work of the meeting (committee) of creditors.

After the announcement of bankruptcy proceedings, applications are additionally accepted for two months.

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After the expiration of the specified deadlines, documents will be accepted only if there are valid reasons.

Regulation of activities of insurance companies

Recently, there has been a trend of increasing reduction of insurance organizations in the market. This is due, first of all, to the fact that in 2012 the law “On the organization of insurance business in the Russian Federation” adopted that the authorized capital of the insurer must exceed 120 million rubles.

When this requirement came into force, a number of insurance companies went bankrupt, including even some of the top 30. Other organizations have announced mergers with larger companies, but even after this, from time to time insurers admit themselves to be financially insolvent in arbitration courts.

Results of bankruptcy of insurance companies

Upon completion of the bankruptcy procedure, the insurance company ceases to exist. It means that:

all contracts are automatically terminated and cease to be valid;
licenses are revoked;
employees and agents leave;
the property of the enterprise is sold to pay off debts to creditors;
the organization is excluded from the Unified State Register of Legal Entities.

If financial assets or unrealized property remain after liquidation, everything is distributed among the founders in proportion to their participation in the authorized capital.

What happens to the license

Legal activities of insurers are possible only with permits. Revocation or deprivation of a license is one of the ways to control the work of insurance organizations.

The grounds for revocation of a license may include:

non-compliance with insurance legislation requirements;
conducting illegal activities and repeated violations;
customer complaints about unfair work;
initiative of the Bank of Russia in case of failure of an insurance organization to comply with mandatory requirements.

Bankruptcy of an insurance company is one of the reasons for revocation of a current license.

Violations are recorded in inspection reports and referred to the Arbitration Court or the Antimonopoly Committee. Based on the decision of these organizations, the license may be suspended until the shortcomings are corrected or completely revoked.

After deprivation of a license, an insurance organization does not have the right to continue operating or enter into new contracts, but is obliged to make payments on previously concluded obligations within 6 months.

Who pays the insurance amounts?

After an insurance company goes out of business due to bankruptcy or deprivation of its license, the policyholder needs to know where to go to get their funds.

Owners of compulsory MTPL policies have priority rights. If the company with which the insurance contract is concluded is liquidated, then its functions are assumed by the Union of Auto Insurers. This organization pays insurance amounts according to the contract upon the occurrence of an insured event. Repairs to the vehicle of a participant in an accident are compensated upon completion of an application and mandatory documents in accordance with established rules.

This is also important to know:
How to file for bankruptcy of a debtor - a legal entity

Debt for other types of insurance can be collected while the company is in bankruptcy and has not yet been liquidated. To do this, you must timely submit an application to the bankruptcy trustee or the Arbitration Court.

The debt is assigned a priority. As property is sold, debts to creditors are repaid.

Who pays bankruptcy insurance?

It is possible to receive insurance amounts if:

the contract as part of the insurance portfolio was sold to another organization, i.e. reinsurance occurs;
the insurance company was liquidated by merging into another organization with full transfer of assets and liabilities.

The Federal Insurance Supervision Service may order a forced transfer of the insurance portfolio in order to stabilize the position of the insurance company and protect the interests of policyholders.

Information about reinsurance is mandatory published on the websites of both companies. During 2021, 10 insurance companies posted information about the transfer of their insurance portfolio.

Contracts not transferred to other companies are considered terminated. The policyholder has the right to demand the return of the insurance premium paid by him for the period from termination of the contract to the expiration date specified in the document. In bankruptcy, such claims are satisfied in order of priority depending on the type of agreement.

When does bankruptcy occur?

Signs of bankruptcy of an insurance company, in essence, boil down to the fact that the organization cannot fulfill its financial obligations to creditors.

According to the provisions of the Insolvency Law of 2002, an insurance company can be declared bankrupt in the following cases:

If the total claims of creditors amount to more than 100 thousand rubles, and obligations to them are not fulfilled for more than 14 days.
When obligations to creditors are not fulfilled within 14 days, according to a court decision, regardless of the amount of debt.

List of bankrupts

In the insurance industry, company bankruptcy is a common occurrence. During 2021, Bank Russia made 12 decisions on the appointment of temporary administrations and about 50 decisions on the revocation or termination of licenses to carry out insurance activities.

Information about existing insurance organizations, as well as those that have been declared bankrupt or do not have a license, is regularly updated on the Internet.

Before deciding on insurance, you need to collect all the information about the company, find out its rating and read reviews from other clients.

List of insurance companies declared bankrupt for 2021

The list of insurance companies that have been declared bankrupt today includes about 120 organizations. Among them, you may be familiar with such companies as:

LLC SK "Moscovia",
LLC IC "VTB Insurance",
JSC SK Podmoskovye,
JSC SK Regiongarant,
CJSC "Joint-Stock Insurance"
LLC "SO "ASTO Garantiya"
LLC "RussoBalt"
LLC "Insurance Group "Corona",
Gorstrakh LLC,
OJSC "Rosstrakh"
CJSC SK NIKA Plus,
LLC "SG "Admiral"
OSJSC "Russia"
JSC "ZHASO"
JSC SK Alliance.

View the full list of bankrupt insurers for 2021. You can also view the current list on the RSA website.