When insurance payment guarantees matter

An insurance contract is a promise to pay in the future. If an insurance company leaves the market, the client asks: who is now liable under the policy? In Russia, insurers' licences are issued and revoked by the Bank of Russia, and for certain types of insurance the law has created mechanisms that protect victims and insured persons even if the insurer goes bankrupt.

What happens when a licence is revoked

The procedure for winding down an insurer's business is set out in Article 32.8 of Russian Federation Law No. 4015-1 "On the Organisation of Insurance Business in the Russian Federation". Once its licence is revoked, the company may not conclude new contracts and must, within the period set by law:

  • meet its obligations for insured events that have already occurred;
  • transfer its insurance portfolio to another licensed insurer, or terminate contracts early and refund part of the premium.

If the money is insufficient, bankruptcy proceedings begin and clients' claims are entered in the register of creditors. That is why separate guarantees exist for mass-market and socially important types of insurance.

OSAGO: RSA compensation payments

For OSAGO (compulsory motor third-party liability insurance), the guarantor is the Russian Union of Motor Insurers (RSA). The grounds for a compensation payment are listed in Article 18 of Federal Law No. 40-FZ "On Compulsory Insurance of Civil Liability of Vehicle Owners".

Damage to property, life and health

  • bankruptcy proceedings have been opened against the insurer;
  • the insurer's licence has been revoked.

Harm to life and health only

  • the person at fault is unknown (for example, fled the scene);
  • the person at fault has no OSAGO policy.

The compensation payment is calculated under the same rules and within the same limits as OSAGO indemnity: up to RUB 400,000 for property damage and up to RUB 500,000 for harm to life and health. Having paid compensation, the RSA may recover the amount from the person at fault (a recourse claim).

More on the OSAGO rules, including direct settlement through your own insurer, is in the OSAGO section.

Life insurance: the guarantee scheme run by the DIA

In December 2024 a federal law on guaranteeing rights under life insurance contracts was signed. The scheme is operated by the Deposit Insurance Agency (DIA, ASV in Russian), which already guarantees individuals' bank deposits. The key parameters reported by the Bank of Russia and the Ministry of Finance are:

  • the guarantee event is revocation of the insurer's licence for voluntary life insurance (except revocation at the company's own request);
  • payments are made from a separate fund built from the guarantee contributions of life insurers;
  • the maximum is up to RUB 2.8 million for most payments and up to RUB 10 million for the death of the insured person, in aggregate for all contracts with one insurer;
  • the guarantees cover voluntary life insurance contracts, including those with guaranteed and projected returns, and apply from 1 January 2027 — to both new and existing contracts.

The exact list of protected contracts and the payment procedure are set by the law and by DIA and Bank of Russia regulations. If you hold a large savings life policy, it is sensible not to exceed the guarantee limit with one insurer.

Other types of insurance

For KASKO (motor own-damage insurance), property insurance, voluntary health insurance (DMS), accident insurance and most business contracts there is no separate guarantee fund. If the insurer goes bankrupt, clients' claims are satisfied within the bankruptcy procedure. So the main protection here is choosing a financially sound company. What to look at is explained in how to read insurance company ratings and in our catalogue of insurance companies.

What to do if your insurer's licence is revoked

  1. Check the company's status in the directory of financial market participants on the Bank of Russia website.
  2. If an insured event has already occurred, submit a claim to the insurer or its temporary administration, and keep copies of documents and proof of sending.
  3. For OSAGO, if the insurer is bankrupt or has lost its licence, apply to the RSA for a compensation payment through its representatives.
  4. If the portfolio has been transferred to another company, ask the new insurer how your contract will be serviced.
  5. For property insurance, take out a new policy with another company so you are not left without cover, and claim a refund of part of the premium under the old contract.

Polis Re specialists will help you replace a terminated policy — send a request.