OREANDA-NEWS. August 07, 2008. Under the auspices of the Russian national project, ROSNO has held conferences for the construction industry professionals in Yekaterinburg and Tyumen on insurance of construction, assembly and commissioning works, reported the press-centre of ROSNO.

Among the conferences’ participants were the leading investors and contractors of the construction markets of Yekaterinburg and Tyumen. Along with ROSNO’s representatives, the speech during the Yekaterinburg event was made by Mr. Sergey Rozhkov, First Deputy of the Head of the State Construction Supervision Department by the Yekaterinburg Regional Administration.

During the open debates, the participants discussed the pressing issues related to cancellation of licensing of construction organizations and their shift towards self-regulation, formation of the building materials quality control system, and introduction of financial liability of the construction market participants to the service consumers.

In his speech, Mr. Sergey Rozhkov noted that the year 2009 will represent a turning point in terms of search for the alternative methods of market regulation. It is worth noting that the majority of the discussion participants shared a view that the only way to move forward is to introduce an obligatory insurance coverage of the construction companies’ liability to third parties. To support this idea, the speaker mentioned an example of the Western Europe countries, where civil legislation stipulates liability for the damage inflicted not only to the constructed object, but to the property and health of third parties, and not only during the construction process, but upon its completion as well.

In his report, Mr. Roman Kapshitar, head of ROSNO’s Corporate Sales Management Centre, provided examples of losses incurred in course of performance of the construction and assembly works. He also told about the financial costs arising in the construction process, and about methods of minimizing such costs when insuring construction risks. Among the major competitive advantages of ROSNO’s program for insurance of construction and assembly works, Mr. Roman Kapshitar named the extensive risk package protecting the construction process against all the risks (umbrella coverage), unlike other insurers, who offer only contracts with directly mentioned risks.

A separate conference section was dedicated to the procedure for loss settlement in insurance of construction and assembly works, and evaluation of risks and damage. These issues were covered by Mr. Sergey Vasilenko, representative of the specialized international loss settlement agency Cunningham Lindsey.

Overall, these conferences have been attended by over fifty developers of the Yekaterinburg and Tyumen Regions. The reports made by the speakers aroused great interest among the participants who asked questions related to the legislation applicable to the construction and assembly works and to the rules applicable to preparation of insurance contracts and settlement of losses.