Can an insurance company be declared bankrupt?

What to do if an insurance company goes bankrupt?

Insurance company bankruptcy is a common occurrence in the market . Many of these companies were not insurers, but only issued imaginary insurance, but did not fulfill the main responsibilities for insurance.

Does this mean that policyholders are left without protection if the insurer goes bankrupt?

To receive insurance compensation, the victim will have to make efforts.

Let's consider a fairly common problem: what to do if an insurance company goes bankrupt, how to get an insurance payment in 2019?

Termination of the insurer's activities

Several unpleasant things can happen to an insurer that insures a driver’s auto liability:

the court may declare him bankrupt;
the company’s license may be revoked;
the insurer may be excluded from the direct indemnity agreement.

In the first two cases, the insurer is closed, and the algorithm of actions for receiving the required compensation under compulsory motor liability insurance is practically no different.

A license is revoked or the decision to issue it is canceled in the following cases:

the applicant did not take measures to obtain a license within two months from the date of notification of its issuance;
Before the license is issued, the fact that the applicant provided false information was established.

As soon as the decision of the insurance supervisory authority to revoke the license comes into force, the insurer will not be able to enter into insurance contracts or make changes to the contracts.

No later than the next business day after the decision to revoke the license comes into force, the insurer must notify clients of the revocation of the license and the date of early termination of the contracts.

About the bankruptcy procedure

Bankruptcy is the inability of an economic entity to be liable for its property and financial obligations, i.e. the legal entity is unable to pay off its debts. The bankruptcy of the insurer is regulated by the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”.

Can an insurance company be declared bankrupt, and in what cases is such an outcome possible?

The insurer is declared bankrupt if it cannot satisfy the demands of creditors on financial obligations, make obligatory payments, and also for the following reasons (Article 183.16):

The amount of creditors' claims is at least 100,000 rubles. The insurer does not pay them within 14 days from the date of execution.
The value of the organization’s property is insufficient to fulfill obligations to creditors and the obligation to make mandatory payments.
The insurer's solvency was not restored during the period of the provisional administration.

The bankruptcy case of an insurer is considered by an arbitration court . An application to declare the insurer bankrupt is accepted by the arbitration court if there is at least one of the signs of bankruptcy.

Bankruptcy is a last resort in the process of liquidating an insurance company. To prevent such consequences, Law No. 127-FZ of October 26, 2002 provides for a certain procedure.

The time frame for carrying out procedures to restore solvency does not exceed six months from the moment the grounds for such measures arise. There must also be grounds for taking measures to prevent bankruptcy.

The control body makes a decision on the appointment of a temporary administration within thirty days (working days are taken into account). An on-site inspection is carried out, based on the results of which an application is submitted to declare the insurer bankrupt if there are signs of bankruptcy.

If it is possible to prevent bankruptcy, the provisional administration must take a number of appropriate actions. The purpose of its creation is to restore the solvency of the insurer.

The maximum period of its activity should not exceed 9 months. The main period is 3-6 months. The provisional administration must conduct an analysis of the financial condition of the applicant for recognition as bankrupt.

The result is submitted within a specified period to the control body, which makes one or the other decision:

or the temporary administration applies to the arbitration court, submits an application with a request to declare the insurer bankrupt;
or the control body instructs the temporary administration to ensure the fulfillment of the obligations of the insurer and to prepare measures to prevent its bankruptcy if the control body receives documents on ensuring the fulfillment of obligations by the participants.

If it is impossible to restore the insurer's solvency, the bankruptcy procedure is irreversible. But what should policyholders do? How to get payment if the insurance company goes bankrupt?

If an insurance company goes bankrupt, what is required by law?

Law No. 127-FZ provides that among the claims of the insurer’s creditors there is a priority point in which the demands of the policyholders to make payment to them for damages must be satisfied.

The guarantees of policyholders include the fact that all insurance contracts concluded by a bankrupt insurer, under which an insured event did not occur, are terminated.

If an insured event occurs before a court ruling on the company's bankruptcy, the policyholders have the right to demand payment of compensation.

Article 184.5: if the company is declared bankrupt and the court has opened bankruptcy proceedings for the insured, the insured has the right to a portion of the insurance premium paid to the insurance organization in proportion to the difference between the period for which the contract was concluded and the period during which it was in force, or payment of the redemption amount.

If the insured event does not occur, the insurance contracts are considered terminated.

If the policyholder has received a compensation payment under an agreement, the terms of which provide for the right to receive it at the expense of professional associations, such citizens may demand from the debtor a payment in an amount that exceeds the amount of the compensation payment received.

Consequences of bankruptcy proceedings for the policyholder:

Meeting requirements. The policyholder will receive his payment calculated at the time of the insured event or the debtor is declared bankrupt (the outcome depends on the terms of the contract).
Partial satisfaction of requirements.
Refusal to satisfy claims due to lack of funds.

During bankruptcy proceedings, the insurer's property complex is sold off . It includes all types of property, as well as the insurance portfolio, and these are insurance contracts with an unexpired validity period, assets accepted to cover insurance reserves.

What's in practice?

Let us answer a question that interests many people: who pays compensation to the victim of an accident in the event of bankruptcy of the insurance company.

In many cases, persons who entered into a CASCO insurance contract with a bankrupt insurance company are unable to receive compensation.

But, despite the disappointing forecasts, you need to write an application with a request to pay the insurance, attach the necessary documents indicating the occurrence of an insured event (certificates from the traffic police, calculation of the cost of restoration repairs or documents that confirm the actual costs).

The victim’s application is accepted and included in the insurance register of debtors . If there are sufficient funds when selling assets upon liquidation of the company, the payment is made.

But most often, by the time the company goes bankrupt, most of the assets have already been sold, since they first settle accounts with the organization’s employees (pay wage arrears), then pay tax debts, and only then begin to pay insurance if there is money left.

What to do as soon as information appears about the bankruptcy of an insurer? Advice: re-insure with another insurer, and in the future choose the place of insurance more carefully.

The situation with CASCO is more complicated than the situation with OSAGO . To save time, the client can immediately contact lawyers and file a lawsuit in order to receive at least part of the payments.

The following situation is possible - the company’s license has simply been revoked, but it has not yet been declared bankrupt, then the insurer was not exempt from compensation for damage.

If the list of creditors has not been closed, the client must act quickly - urgently get in line in the register of creditors. Perhaps he will receive compensation payments after the assets of the collapsed company are sold. But not everyone is lucky.

Russian Union of Motor Insurers

The OSAGO Law 40-FZ dated April 25, 2002 regulates that compensation for damage caused to the victim’s property is made if insurance compensation under OSAGO is impossible for the following reasons:

the arbitration court decided to declare the insurer bankrupt, and it was also decided to open bankruptcy proceedings in accordance with the legislation that was considered earlier;
The insurer's license was revoked.

Motorists are often confused and do not know where to turn if the insurance company goes bankrupt. Compensation payments are made by RSA . The policyholder may submit a claim for compensation for damage within three years.

Typically, PCA enters into an agreement with an existing insurance company that handles all customer claims.

Amount of compensation payments:

no more than 160 thousand rubles for compensation for harm caused to the life or health of the victim;
no more than 160 thousand for damage to the property of several victims;
no more than 120 thousand for damage to the property of one victim.

RSA makes payments to compensate for damage to life and health in the following cases:

the insurance company of the person responsible for the accident is bankrupt;
the at-fault party’s insurance company lost its license;
the culprit of the accident could not be identified;
the culprit does not have an insurance policy.

RSA makes payments to compensate for damage to property in cases where clients are unable to receive payment for the following reasons:

the insurance company of the person responsible for the accident is bankrupt;
The culprit's insurance company lost its license.

How to receive due insurance payments from RSA? The victim contacts the Union (or the insurer in the direction of RSA) with the following documents:

statement;
certificate of accident;
a copy of the resolution in the case of an offense, or a ruling on the refusal to initiate a case of an administrative offense;
documents that confirm the client’s right of ownership of the damaged vehicle (vehicle registration certificate) or the right to insurance payment in case of damage to property owned by another person;
insurance;
conclusion of an independent examination on the nature of the damage caused;
documents confirming payment for independent examination services;
documents that confirm the provision and payment of tow truck services, if the applicant requires reimbursement of these expenses (expenses for evacuation from the scene of the accident to the place of repair work or storage are reimbursed);
other documents that the applicant can present to justify the right to receive compensation for damage caused to his property (estimates, checks, invoices).

If the Union of Auto Insurers denies compensation (and this is not an uncommon result), the victim should sue. Quite often, RSA explains its refusal by the fact that the failed insurer did not transfer the registers of sold insurance under MTPL. This is illegal.

If the insurer goes bankrupt and starts feeding the client “breakfast” that compensation will soon be paid, if the deadline for payment has been exceeded, if the company refuses, citing implausible grounds, you need to go to the RSA or straight to court.

You also cannot trust people who claim that for a small fee they will help you claim due compensation from the company. These are scammers.

Video: What to do if an insurance company goes bankrupt?

What to do if an insurance company goes bankrupt and how to get compensation

Every year thousands of organizations are liquidated in Russia. One of the reasons for the termination of activities is the financial insolvency of the company. This situation entails troubles both for legal entities themselves and their clients. Especially when it comes to the bankruptcy of an insurance company. What to do in this case? Who should policyholders ask for compensation for losses?

Concept and legal regulation of bankruptcy of the insurance company

The definition of “bankruptcy” means the inability of a legal entity to fulfill financial obligations: to employees, clients, lessors, etc. A more precise interpretation of the term, the essence and description of the process of declaring the insolvency of an organization are described in a special legislative act - Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy)”. It is the liquidation of insurance companies that is given a separate chapter, number 9.

It is important to note that the insolvency of a company must be expressed by certain criteria. Thus, according to paragraph 183.16, it is permissible to begin the bankruptcy recognition procedure only if one of the specified reasons is met:

Having a debt to creditors in the amount of 100 thousand rubles and not paying it off on time, more than 14 days from the date of their execution.
Failure to comply within two weeks with the court’s demand to collect money from the insurer, regardless of the amount declared by the creditor.
The value of the company's property does not allow it to pay off all existing debts and obligatory payments.
The solvency of the insurance company was not established during the work of the interim administration.

Important! The compliance of the situation with one of the above options must be confirmed by the court. This means that declaring bankruptcy is permissible only after appropriate proceedings.

The essence and consequences of bankruptcy of the insurance company

The procedure for declaring an insurance organization financially insolvent requires a lot of effort and time. This process begins with the appointment of a temporary administration. If at this step it is confirmed that the company is unable to fulfill its obligations to creditors, they proceed to the following stages: observation, financial recovery, external management, bankruptcy proceedings.

Important! The main distinguishing feature of the bankruptcy procedure for an insurance company from the recognition of financial insolvency of firms in other areas is the presence of the first additional stage with the appointment of a temporary administration.

Here, it is the representatives of the special committee, based on the control measures carried out, who make the decision to initiate bankruptcy. In the case of legal entities operating in other industries, such a decision is made at a meeting of founders.

What should insurer clients do?

The actions of policyholders in the event of bankruptcy of an insurance company and revocation of its license depend on several factors: the type of policy, its purpose, and the occurrence of an insured event. First of all, the liquidated organization tries to make payments to persons who have taken out policies regarding their life and health. Next, attention is paid to other types of insurance: MTPL, CASCO, mortgage, real estate, etc.

Important! Declaration of financial insolvency deprives the insurance company of the opportunity to enter into new contracts. But in order to avoid unpleasant situations, it is still recommended to first familiarize yourself with the ratings and reliability of insurers. Detailed instructions on how to do this are given here.

It would also be appropriate for policyholders to request information about the transfer of the client base with concluded contracts to a new insurance company. Although this rarely happens in practice, such a sale of a portfolio by a liquidated organization allows solving several problems at once. Firstly, to at least to some extent compensate for the losses; secondly, do not leave clients without help and support.

If such a transfer of rights and obligations under contracts for the provision of services has been made, then previously received insurance will be valid until their expiration. Otherwise, compensation for the underused document is not provided.

What to do if an insured event occurs? Where to go if the insurance contracts have not been transferred to the new company? The outcome of events depends on the type of policy and its purpose. Detailed information for each individual case is provided below.

OSAGO policy

Since compulsory motor liability insurance is a mandatory document, there are no problems with compensation for losses in the event of an insured event. This is achieved by transferring obligations for settlements with clients of a bankrupt company to the Russian Union of Auto Insurers.

To receive a compensation payment from this organization, you will need to complete several steps:

notify RSA employees about the traffic accident;
contact appraisers to obtain an opinion on the amount of damage caused;
collect the entire list of necessary documentation and submit them to the Union.

Most often, car owners do not have problems receiving proper payments. If, however, disagreements do occur, the surest way is to go to the courts.

CASCO policy

CASCO is a voluntary type of insurance, so the state did not provide easy compensation for losses under this type of policy. But there is a possibility of getting your money back. To do this, it is recommended to perform the following manipulations:

Notify the insurance company about the incident. Even if the company has already been declared bankrupt, its offices have ceased to function, it is imperative to send a package of papers with notification of the accident.
After the established period for consideration of applications has expired, contact the insurer with a pre-trial claim.
You still haven't received a response letter? It is recommended to write a statement of claim to the court. In this case, you should indicate the company's bankruptcy in the document and request to seize existing assets.

It is recommended to do all this immediately. After all, until all the bankrupt’s assets are spent, the victim will have the opportunity to receive proper compensation.

Mortgage insurance

Often, when obtaining a loan to purchase real estate, an insurance policy is required. It is understood here that the following are protected from all risks and unforeseen situations: the living space itself, the life and health of the borrower, the title (ownership of the purchased object).

This means that the solution to the problem of compensation for losses will depend on the problem that has arisen: the borrower, his residential premises have suffered, or he has lost the right to own an apartment/house. Each of the possible options is discussed below.

Life and health

As indicated, when an organization is liquidated due to bankruptcy, they first try to distribute existing assets among clients who have taken out a life and health insurance policy. This means that it should not be difficult to obtain compensation for losses in this case. But you should hurry: payments will be made in the order of priority of citizens who applied.

If property is insured

An unpleasant situation occurred with real estate? Then it is recommended to follow the advice described in the CASCO subsection. Namely: notify the Investigative Committee in writing about what happened, and if there is no response within a certain period of time, send a pre-trial claim. The final step in resolving such an issue: filing a claim in court. Yes, this does not provide a 100% guarantee of receiving a compensation payment, but it still gives at least a small chance to compensate for losses.

Where to apply for a refund

It was mentioned above that if a bankrupt insurance company transferred its clients to a new company, then all questions and problems should be addressed to the latter. For example, to continue the validity of an insurance document, to compensate for losses in the event of an insured event, etc.

Has the new “owner” shown up for existing clients? Then the outcome of events depends on several factors:

Were there any road traffic accidents? You should conclude a new insurance contract with a reliable company - you will not be able to return the premium on the old policy.
Has there been a road accident? Then it is possible to receive payment in several ways: by contacting the liquidated insurance company, the Russian Union of Auto Insurers, or the insurer of the person responsible for the accident.
Has there been an insured event of a different nature? The only way to receive compensation is to contact the bankrupt company directly.

Important! Often only holders of compulsory motor liability insurance can recover losses under an insurance document. The explanation for this is the mandatory nature of the document. But in any case, it is recommended to go to court: perhaps they will help find ways to restore justice.

Application deadlines

When contacting a liquidated insurance company to compensate for damages due to an insured event, it is recommended to act immediately. After all, the bankrupt’s assets will be distributed in order of priority: this means that clients who submitted applications for payment in advance will have a better chance of receiving funds.

List of required documents

Before contacting a company (it doesn’t matter - a bankrupt insurer, RSA, or an insurance company for a traffic violator), you should prepare the following package of documents:

passport of a citizen of the Russian Federation;
if the interests of the applicant are represented by a third party - a corresponding power of attorney;
documents certifying the occurrence of an insured event (certificates from the clinic, traffic police, etc.);
the insurance document itself;
details of the current account into which the payment is expected to be received upon satisfaction of the application.

This is not a definitive list of documentation requested by insurers. At their discretion and depending on the situation, they may be required to supplement/change the list of submitted papers.

How realistic is it to get compensation in bankruptcy?

In practice, policyholders rarely receive compensation payments for optional types of policies - life and health, mortgage, CASCO, etc. However, despite the negative statistics, it is recommended to send an application requesting compensation for losses due to an accident; not forgetting to attach the entire list of required documentation.

After registering such an application from the client, the injured person is included in the register of debtors of the insurance company. Then, if the bankrupt has a sufficient number of assets, compensation to the policyholder is guaranteed. But often the money does not reach the insured persons: the company, according to the legislation of the Russian Federation, initially pays for labor, then covers tax debts. Only after making all obligatory payments do they proceed to compensation for losses according to insurance documents.

What to do if the insurance company goes bankrupt? Rather, go to court with a statement of claim! How to protect yourself from unreliable insurers? Choose companies with good ratings and extensive experience!

Summarizing the above material, we can draw several key conclusions:

Declaration of bankruptcy of an insurance company occurs only through the court. This means that the company cannot avoid making payments, citing only a lack of money - there must be evidence in the form of a corresponding act.
Guaranteed compensation for losses is only permissible under compulsory motor liability insurance; in other cases, it is possible to receive payment only if the bankrupt insurance company has a sufficient number of assets.
You cannot get a refund for underused policies. The only way to extend the policy is to switch to a new insurer. However, this is only possible when transferring the insurance portfolio to a new company.

If you have any questions or would like to get legal advice on this issue, please contact our specialists using the form on the website! And also don’t forget to like and repost the material.

Sometimes situations arise when an insurance company’s license is revoked, but the company is not liquidated and is not bankrupt. In this case, the obligation to compensate for damage falls entirely on the “offending” company. You can read more about this situation here.

Bankruptcy of insurance organizations

Insurance is an activity that everyone deals with. Compulsory motor liability insurance, medical policy and voluntary insurance may be at risk due to the fact that the insurer has declared itself bankrupt. What can be done in this case?

Bankruptcy of legal entities and individuals is a common practice known throughout the world. The bankruptcy of an insurance company leads to significant losses for clients who entrusted them with their funds. Ordinary policyholders are often at a loss when faced with the fact that an insurance company has been declared bankrupt, and consider their money lost in advance.

Since the bankruptcy process lasts more than one day, it is advisable to know in advance the procedure for this procedure, what actions and when can be taken to return the invested funds.

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.

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).

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.

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.

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.

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”.

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.

We will answer your question in 5 minutes!

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

Where to go if the insurance company is declared bankrupt?

If the insurance company is bankrupt

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,
a company may be excluded from a 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.

Where to go if the victim’s insurance company is bankrupt?

According to the Federal Law “On Compulsory Motor Liability Insurance” of 2019, a victim in an accident must contact his insurance company (he cannot, but must only contact his own) if 2 conditions are met simultaneously:

all participants have a valid MTPL policy,
damage as a result of an accident is caused only to property (and not to the health and life of people).

Until September 25, 2017, there was also a condition that no more than two vehicles should have been involved in an accident, but amendments to Federal Law No. 49 were made, and now any number of cars can be involved in an incident to contact your insurance company.

What to do and where to go if your insurance company is declared bankrupt? The answer to this question is simple - according to the recommendations of the Russian Union of Auto Insurers, claims for payment must be submitted to the insurance company of the culprit. Part 9 of Article 14.1 of the Federal Law “On Compulsory Motor Liability Insurance” tells us the same thing:

9. A victim who, in accordance with this Federal Law, has the right to submit a claim for compensation for damage caused to his property directly to the insurer who insured the civil liability of the victim, if the arbitration court makes a decision to declare such an insurer bankrupt and to open bankruptcy proceedings in accordance with the legislation on insolvency (bankruptcy) or in the event of revocation of his license to carry out insurance activities, makes a claim for insurance compensation to the insurer who insured the civil liability of the person who caused the harm .

Only if both insurance companies (both the victim and the culprit) have closed, then you need to apply for payment directly to the RSA.

Just indicate in the application when applying that you are contacting the company that insured the liability of the culprit due to the closure of the insurance of the victim and, as a result, the impossibility of receiving insurance compensation from the latter. The application allows such an indication, since it is written in free form.

Where to go if the at-fault party’s insurance company has closed?

Quite a lot of questions arose from drivers who found themselves victims of traffic violations by other road users and who were forced by law to contact the Moscovia insurance company, which closed in mid-2017.

If for one reason or another you must contact the insurance company of the person responsible for the accident, but a bankruptcy or license revocation procedure has been initiated against it, then in this case you need to apply for payment to the Russian Union of Auto Insurers or to any insurance company that is a member of the RSA. Part 1 of Article 19 of the Federal Law “On Compulsory Motor Liability Insurance” tells us this:

1. Compensation payments are made by a professional association of insurers, operating on the basis of the charter and in accordance with this Federal Law, according to the requirements of persons entitled to receive them.

Insurers acting at the expense of a professional association of insurers on the basis of agreements concluded with it can consider claims for compensation payments, make compensation payments and exercise the right of claim provided for in Article 20 of this Federal Law .

However, we recommend contacting RSA. The fact is that ordinary insurance companies carry out an examination of the car in the same way as your company would, and there is a considerable risk of the traditional underestimation of the cost of compensation. RSA pays compensation based on the results of an independent examination (and the cost of the examination itself is also reimbursed) in the amount of 100% of the cost based on the results of this examination.

How to contact the Russian Union of Insurers?

It is better to go to RSA on your own. The organization is located in Moscow, and it has representative offices in the regions, but not in every city. Therefore, you can send documents by registered letter with acknowledgment of delivery.

What is bankruptcy of insurance companies: stages, features of the procedure

Insurance company bankruptcy is a fairly common occurrence these days. This always has a big impact on their clients who lose money and have to look for some way to get it back. What to do if an insurance company goes bankrupt? Of course, follow the procedure established by law.

What legislation governs the issue of insurance insolvency?

Bankruptcy is financial insolvency, that is, the inability to meet one’s claims to creditors within the time period specified by the legislation of the Russian Federation. This procedure is regulated by Federal Law No. 127 of November 26, 2002.

Bankruptcy of an insurance company is a procedure regulated at the legislative level. It is he who establishes the grounds on which a company can be declared bankrupt, according to Article 183.16 of Federal Law No. 127:

the amount of the creditors' claim is at least 100 thousand rubles;
within 2 weeks the company is not able to cover them;
the value of all existing property of the company is insufficient to pay off its debts;
its solvency was not restored during the period of the provisional administration.

Another legislative act that regulates this area is the Federal Law “On the organization of insurance business in the Russian Federation.” It establishes certain requirements for the insurance companies themselves, in contrast to Federal Law No. 127, which deals with bankruptcy issues of basically any company.

Types of insurance

After the collapse of the Soviet Union, the first classification of types of insurance on the territory of the Russian Federation was the one approved by Rosstrakhnadzor in 1994. But before we talk about types of insurance, let’s define the term itself. This is insurance of individual objects in a certain volume and at established rates.

There are several types of insurance, each of which has its own characteristics. The classification criterion for such types is the object of insurance and the insured risks. Here are the types that stand out:

property insurance (individuals and legal entities can enter into contracts in order to provide protection against any risks to their property. This includes insurance of real estate of all types, vehicles, cargo, etc.);
liability insurance (the object is the property interests of third parties. This includes compulsory motor liability insurance, liability insurance of the manufacturer, directors and officers, employer, Green Card, etc.);
personal (this includes all types of insurance related to any events in the life of an individual citizen that are related to his health, pension, ability to work, etc.);
insurance of specific and financial risks (failure to fulfill financial obligations, political risks, etc.).

Of course, due to changes in the insurance market, which are simply inevitable, various additional types and subtypes appear. So, since 2012, such a type of insurance as public insurance has been allocated. This is the provision of insurance to the owner of a dangerous object for damage in the event of an accident involving this object.

Names of all types are formally assigned, by order of the Ministry of Finance of the Russian Federation, and are used by the Central Bank of the Russian Federation, the Federal Social Insurance Fund, etc.

The main reasons for the bankruptcy of insurance companies

Bankruptcy of insurance organizations can occur for various reasons. Such situations may arise due to the following circumstances:

dishonest actions of the company's employees or its clients;
dumping pricing policy (low insurance payments and high payments for them are assigned);
underestimation of economic risks when executing certain contracts;
low qualifications of the company's top managers and its management;
lack of capital in the company;
occurrence of insured events in large numbers.

Features of bankruptcy

The features of bankruptcy of insurance companies include the following features, which are specific only to this type of business activity:

the sale of property is not carried out on a generally accepted basis (for this, external management is introduced, and only a company that has the appropriate license to carry out insurance activities can acquire it);
all obligations under existing contracts are immediately terminated (in practice, this means that it is almost impossible to receive your payments under such contracts);

The bankruptcy process of an insurance company has its own characteristics.

obligations to creditors are divided into two types: current and registered (first of all, payments on current debts come, and creditors have the right to present their claims during the period of recovery procedures);
when a message about the bankruptcy of a company was published, creditors can present their claims within a month (when bankruptcy proceedings open, they can be filed within two months).

Features of process initiation

Both the debtor company and its creditors have the right to declare bankruptcy. If the application is drawn up correctly, the necessary documentation is attached to it and legal costs are paid, the arbitration court will proceed with the case.

Bankruptcy of insurance organizations includes the following stages:

observation;
financial recovery;
external management;
bankruptcy proceedings.

According to changes in legislation in 2010, another stage is provided - bankruptcy prevention, considered as an alternative to financial recovery.

Sample application for bankruptcy of an insurance company

The control body indicates in the document:

The name of the court in which it is filed.
Insurance company name, address, identifying information. The latter include the number of the state registration record in the status of a legal entity, TIN.
Name of the control structure and its address.
The volume of claims for monetary obligations, the amount of debt for contributions to the budget, the value of assets (property) or other information relevant to the proceedings of the case.
Full name of the arbitration manager, name and address of the self-regulatory structure in which he is a member, or the name of the organization from whose members he must be approved, its address.
List of applications.

The statement of the provisional administration contains almost similar information, with the exception of a number of points:

Instead of the name of the control body, the full name of the head of the temporary administration, the address to which correspondence will be sent to him, and details of the document confirming the approval of the person in this position are indicated.
The name of the self-regulatory structure and its address are indicated if the head of the administration is an arbitration manager.
Information about the candidacy of the bankruptcy trustee, if, in accordance with Federal Law No. 127, it is not the Deposit Insurance Agency.

Activities of the provisional administration

If the application to declare an insurance company bankrupt is accepted by the arbitration court, a temporary administration is appointed, to which, in fact, management of the company passes.