OREANDA-NEWS. On 02 March 2009 was announced, that IJSC Ingosstrakh had made one of the most notable one-time insurance compensation payments under an insurance policy covering the legal liability of a bank card issuer. The size of the compensation paid to one of Russia’s major banks amounts to RUR 1.5 mln.  The reason that caused the bank card issuer’s losses was the unauthorized debiting of the bank clients accounts by unknown persons.

According to the Head of the Financial Institutions Insurance Section of IJSC Ingosstrakh Dmitry Shaposhnikov, Ingosstrakh has operated as the insurer of bank card issuer risks for more than ten years. The company has accumulated experience in appraising the risks inherent to this type of insurance and in settling relevant claims. In 2008 Ingosstrakh settled almost RUR3mln in claims. According to statistics, the number and size of losses per card grow in a steadfast manner. Last year, the size of damages through fraudulent activities with credit cards was USD 1-2k per each case on average; however, it has increased to USD 3-5k from the beginning of the year.  The aggregate size of damages of a credit institution is primarily dependent on the total number of credit cards it issues.

A standard bankcard service agreement usually binds the credit institution to compensate the losses to its clients, should such losses be caused by fraudulent activities of a third party. As Mr. Shaposhnikov noted, the insurance policy that covers the risks of bankcard issuers helps banks to restitute their own losses and ensure additional protection of interests of its client-holders of bank cards.