OREANDA-NEWS. Ingosstrakh Insurance Company concluded a liability insurance contract of Directors and Officers (D&O) with TransContainer, Russia's largest rail container operator. The coverage limit under the policy is 100 million dollars. The effective term of the contract is one year. The insurance coverage is effective in all countries of the world.

98% of the liability limit under the contract is reinsured by TURNER Group broker in international companies with high security ratings.

The decision on the liability insurance of Transcontainer PJSC D&O was adopted at the extraordinary meeting of shareholders of the company.

D&O insurance contract provides for compensation of the expenses that company executives may incur in respect of the claims made against them in connection with their erroneous or negligent acts, or breach of duty. The grounds for such claims can be reckless public statements, unintentional misconduct in office, incomplete disclosure of information, inadequate management or supervision over the activities of the employees, labour disputes and other cases.

The insurance payment compensates for the amount to be payable under a court order or established as due as a result of the extrajudicial settlement procedure, as well as the court costs and and lawyers' fees within the limit of liability stipulated for in the D&O policy.

Personal responsibility of managers for the decisions they make is established by the Civil Code of the Russian Federation and the Law on Joint Stock Companies. Claims and action in respect of D&O are most often submitted by the shareholders and employees, including ex-shareholders and ex-employees, customers, government authorities, previous owners or owners of acquired companies, creditors, groups of public activists.

TransContainer PJSC was founded in 2006. Today it is Russia's leading intermodal container transportation operator. In 2013, the company provided 47 % of container transportation by rail and 24 % of container processing on railway terminals in Russia. In 2013, container transportation by the rolling stock of TransContainer PJSC amounted to 1,454,000 million TEU. The amount of container processing in the company's terminals located within Russian Railways network totaled 1,319,000 TEU.