OREANDA-NEWS. October 7, 2009. “The National Depository Center” (Closed Joint Stock Company) (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, and “Ingosstrakh Joint Stock Insurance Company Ltd.” (Ingosstrakh) announced today the signing of NDC's new insurance policy covering criminal and professional liability. The policy liability limit was set at USD 50 million for any single claim for the duration of the policy and for all claims during the period. Including internal funds allocated for the purpose, the total amount of insurance coverage for NDC liabilities is now over USD83 million. The re-insurers behind the policy include Lloyd’s syndicates (UK), as well as several major German re-insurers.

The following activities, carried out in accordance with NDC’s securities market licenses, its charter and client contracts, are covered by the new policy: clearing and depository activity; activity on depository related services; and activity relating to the safekeeping of securities but not connected with depository activity.

Under the contract, an insured event is considered a situation in which damage is inflicted upon the policy-holder and third parties (including, but not limited to NDC's clients), as a result of improper activity by third parties or employees of the policy-holder, including electronic and computer crimes, operations with forged documents, securities and monetary funds, as well as damage as a result of unintentional mistakes and errors, made by the policy-holder’s employees and executives while carrying out their professional duties.

In accordance with the insurance policy and the legislation of the Russian Federation, an insured event is a fact determining the policy-holder’s liability to compensate for third parties’ losses emerging from the policy-holder’s managers’ or employees’ operations, mistakes, negligence or omission while implementing insured activities.

Insurance coverage applies to insured events which occur during the period of the insurance policy’s duration. The insurance policy covers losses first discovered to have been incurred by the policy-holder in connection with events which occurred after 1 Sept., 2002.