Russia: Marsh Warns of New Russian Liability Law
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Friday, 13 January 2012 |
Insurance broking and risk management firm Marsh has warned that a new law on the management and of plants dealing in hazardous materials will have significant implications for companies trading in the Russian Federation. The law, which came into force on January 1, will have violation penalties applying from April 1, and stipulates that owners of plants that handle hazardous materials must have liability insurance for bodily injury to workers, along with nearby inhabitants and their property.
Marsh argues that the new law, introduced following a 2009 disaster which killed dozens of workers at a Sayano-Shushenskaya plant, could lead to substantial fines and higher insurance costs if plants are found in breach of the law. The insurance mandated by the law can only be provided by members of the Russian Federation’s National Union of Liability Insurers.
“The Sayano-Shushenskaya incident prompted much debate around the safety and accountability of plants operating within Russia, both by domestic organisations and foreign firms. The new law seeks to act as a deterrent for future negligence and ensure victims receive appropriate compensation,” notes Marsh Risk Consulting’s Liability Consulting Leader for Europe, the Middle East and Africa, Jeroen Spanbroek (pictured). “In order to avoid costly fines, companies must ensure that they have properly assessed their level of risk and have adequate insurance in place. Failure to do so may face result in them being subject to sizeable fines.”
PetrolWorld 13012012
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