KIAP, Attorneys at Law, successfully settled a reinsurance case in the amount of more than 100 million rubles in pre-trial procedure
The dispute between two major participants of the Russian insurance market (parties of the contract of optional reinsurance) arose in connection with the improper performance by the Reinsurer of its obligations to pay reinsurance indemnity. The reinsurer, who made the insurance payment under the original commodity producer liability insurance contract, did not receive a proportional compensation from the Reinsurer, who accepted part of the risk for reinsurance, within the terms established by the reinsurance contract.
The specific nature of this situation was given by the fact that voluntary liability insurance contracts for commodity producers are not widespread on the Russian insurance market, therefore disputes over them often find their resolution in court, as a result of which the parties incur additional legal costs.
The considered case was an exception to the current practice. Based on the results of the case study, submitted by the Reinsured, KIAP lawyers prepared the legal position set forth in the statement of claim, which was sent to the Reinsurer before applying to the arbitration court. After receiving the claim and inspecting its arguments, the Reinsurer immediately and on voluntary basis made to the Reinsurer the payment of reinsurance indemnity in the amount stipulated by the reinsurance contract.
The interests of the Reinsurer in resolving a potential dispute were represented by KIAP Partner Dmitry Shnaydman.