OREANDA-NEWS. April 03, 2012. In 2011, insurance compensations paid by IC Allianz (ROSNO trademark) under mortgage insurance and borrowers’ life and working ability insurance contracts exceeded 145 mln. roubles, which is 43% higher than the similar figure for the year 2010. Despite the fact that legislation requires borrowers to insure only pledged property1, the absolute majority of mortgage insurance compensations paid by IC Allianz within the last two years was connected to loss of working ability due to accidents and clients’ diseases, reported the press-centre of ROSNO.

In 2011, the total quantity of insured accidents tripled (in 2011, the company settled 1,031 insured accident, while in 2010 only 331). At the same time, 143,202 thousand roubles of insurance compensations were paid under borrowers’ life and working ability insurance contracts, which is 62% higher than in 2010.

The largest payment in 2011 was made in Moscow under the comprehensive mortgage insurance contract. After the insurant was assigned 1st disability group due to oncological disease, the insured beneficiary (bank where the insurant took mortgage loan) was paid an insurance compensation in the amount of loan debt — 6,940,710.53 roubles.

"In 2011, we noted a significant growth in the number of insured accidents and large increase in the volume of insurance compensations (by 43%). Primarily, this trend was observed in the borrowers’ life and working ability insurance segment, which, in the first place, can be attributed to the growth of the company’s loan insurance portfolio. Among other factors we may note better awareness of our clients about the terms and rules of insurance coverage and possibilities for the use of insurance coverage to settle loan obligations in unforeseen situations. More and more often, our mortgage insurance clients conclude comprehensive insurance contracts, which is more advantageous than purchasing separate policies under each type of insurance, and are fully aware that entering into long-term loan relations with a bank should be accompanies with protection against the entire range of potential risks", comments on the year 2011 results Mr. Arsen Shiroyan, head of the Mortgage Insurance Department of OJSC IC Allianz.

IC Allianz has been providing mortgage insurance since the launch of the federal target program "Housing" in 2002. Among the undisputable advantages of Allianz mortgage insurance are: convenient and high-quality service, customer focus, and prompt decision-making — both at the contract signing stage and during loss settlement. Notably, the company is accredited with the absolute majority of the Russian banks.

1In Russia, when insuring his or her mortgage loan, a borrower may either conclude a comprehensive mortgage insurance contract, including life and working ability insurance, coverage of the real estate itself, and coverage of the loss of ownership title to the pledged property (title insurance), or acquire policy for each separate insurance type. In this respect, under the effective legislation, only mortgaged item (pledged property) insurance is mandatory. Therefore, borrowers have full discretion to choose whether to insure their life, working ability and title, or procure only mandatory pledge insurance.