Sogaz insures Russia's nuclear power plants

29 April 2014

Russian insurance group Sogaz has again won the annual tender to provide property insurance to all of the country's nuclear power plants. It is also to insure the construction of Russia's first floating nuclear power plant.

Smolensk 250 (Rosenergoatom)
Smolensk (Image: Rosenergoatom)

Sogaz won the tender to provide insurance cover for buildings, structures, production equipment and other assets at ten nuclear power plants operated by Rosenergoatom. The ten plants - Balakova, Beloyarsk, Bilibino, Kalinin, Kola, Kursk, Leningrad, Novovoronezh, Rostov and Smolensk - are home to all 33 of Russia's operating reactors.

The insurance policy, which is valid for one year, will cover the properties against risks including fire, flooding and explosions. The total sum insured under the policy is RUB1.2 trillion ($33.7 billion).

The reinsurance of risks under the policy will be carried out among the members of the Russian Nuclear Insurance Pool (RNIP), international nuclear insurance pools and Russian reinsurers.

Coverage for civil liability for nuclear damage from Rosenergoatom's plants has been provided by the Russian Nuclear Insurance Pool (RNIP) since 1998.

Floating plant

Last week, Sogaz announced that it had won the tender to again provide insurance cover for Russia's first floating nuclear power plant, the Akademik Lomonosov.

The plant is currently under construction at the Baltiysky Zavod shipyard in Saint Petersburg. It will be deployed near the port of Pevek on Russia's Chukotka peninsula on the East Siberian Sea and is scheduled to be delivered in September 2016.

The insurance provided by Sogaz will cover loss or damage suffered by Rosenergoatom, the shipyard, subcontractors and suppliers during the construction of the Akademik Lomonosov. The insurance contract also covers the risk of public liability in the event of injury to third parties.

The total sum insured for the floating plant under the insurance contract with Rosenergoatom will be more than RUB22.6 billion ($634 million). The contract will expire in January 2016.

Sogaz is traditionally focused on corporate sector insurance covering companies and corporations in industries such as fuel and energy, transport, chemistry, metallurgy, machine building, aerospace and banking. It has provided insurance cover for nuclear power plants since 2008.

Researched and written
by World Nuclear News