The Company uses the system of property risk insurance quite effectively on a par with the risk management tools introduced within the RMS framework. Insurance is an instrument of managing risks, allowing to fully or partially transfer financial losses from materialisation of risks to insurance companies and thus indemnify for losses.
The main principles of building the property risk insurance system, as well as insurance application and insurance types used for trunk pipeline transportation of crude oil and petroleum products are set out in the Regulations on Property Risk Insurance of Transneft and its subsidiaries.
All types of immovable and movable assets (with the exception of land) insured against the loss (demise) or damage caused by fire, explosion, lightning stroke, flood, natural disaster, third-party wrongdoing etc., are subject to property insurance contracts. Transneft subsidiaries also buy damage liability insurance policies.
Transneft subsidiaries also buy freight and construction and assembly risk insurance policies as and when necessary.