OREANDA-NEWS. Ingosstrakh Insurance Company paid more than RUB 7.4 bn in connection with the total loss of Express AM4R a spacecraft during the launch of Proton-M carrier vehicle in May 2014.

Express AM4R Spacecraft was insured by Ingosstrakh Insurance Company and SPUTNIK Insurance Center for the period of its launch and 1 year of its on-orbit operation. The share of Ingosstrakh Insurance Company in the insurance was 95% of the sum insured. The insurant was Russian Satellite Communications Company.

On May 16, 2014, Proton-M launch vehicle with Breeze-M booster, carrying Express AM4R spacecraft, was launched from Baikonur cosmodrome (Kazakhstan). At the 546th second of the flight, an emergency situation with the Proton-M launch vehicle occurred, resulting in the total loss of Express AM4R spacecraft.

Ingosstrakh Insurance Company and Sputnik IC recognized the case as an insured event and paid compensation to the policy holder in the amount of RUB 7.8 bn. This has been the largest compensation payment in the history of the Russian insurance so far.

Ingosstrakh Insurance Company is a leader in the space insurance sector, having been a space risks insurer for as long as several decades. The company has also provided insurance coverage to Russian Satellite Communications Company since 1999. During the period of this cooperation, Ingosstrakh Insurance Company insured the following spacecrafts: Horizon 45, Express-A1, Express-A2, Express-A3, Express-AM1, Express-AM2, Express-AM3, Express-AM4, Express-AM11, Express-AM22, Express-AM33, Express-AM44, Express-MD1, Express-MD2, Express-AM5, Express-AM6, Express-AT1, Express-AT2, Express-AM8, and Express-AM7.

Ingosstrakh Insurance Company has a great experience not only in insurance, but also in the settlement of losses on the risks associated with spacecrafts launch and their operation in orbit. One of the largest payments was the one for the loss of Coupon the spacecraft, owned by the Central Bank of the Russian Federation, with the compensation amounting to more than USD 80 m in 1998.

In 2009, Ingosstrakh Insurance Company paid RUB 1.071 bn to Russian Satellite Communications Company. The payment was made in connection with the partial loss of Express-AM2 spacecraft due to the abnormal work of the pivot mechanism of solar panels. In 2006, the insurance company has paid out more than USD 1.5 m in respect of the failure of correction engines on the Express-A1P spacecraft. And in 2000, Ingosstrakh Insurance Company paid damages in the amount of USD 12.5 m in connection with the total loss of Express-A1 spacecraft because of the accident with Proton carrier vehicle.

In late August 2011, Express-AM4 spacecraft, which was insured by Ingosstrakh Insurance Company, was lost due to its going on a wild trajectory. The insurance payment was RUB 7.5 bn. In December 2012, Ingosstrakh Insurance Company paid RUB 1.177 bn due to the total loss of Express-MD2 spacecraft, which did not go into the proper orbit after its launch in August 2012. The emergency situation was caused by Briz-M booster malfunctioning. In 2014, Ingosstrakh Insurance Company paid RUB 857 m in connection with the total loss of Express-MD1 spacecraft, which occurred in July 2013.