A notary does far more than sign and stamp. They check documents and the parties' authority, establish the identity and legal capacity of those involved in a transaction, and explain the consequences of the notarial act. A mistake here may cost a client an apartment, an inheritance or a business. That is why the law requires notaries in private practice to insure their civil liability.
Legal basis
The requirements are set by the Fundamentals of Legislation of the Russian Federation on Notaries of 11 February 1993 No. 4462-1: Article 17 covers a notary's liability, Article 18 covers insurance, and Article 18.1 covers the compensation fund of the Federal Notary Chamber.
Who insures and with whom
A notary in private practice must conclude a civil liability insurance contract. Without it, they may not perform notarial acts. The insurer may be an insurance company, a foreign insurance company or a mutual insurance society accredited by the Federal Notary Chamber. Additional requirements for the contract are set by the Federal Notary Chamber, and compliance is monitored by the notary chambers of the constituent entities of the Russian Federation.
Object of insurance and insured event
The object of insurance is the property interests related to the risk of a notary's liability for pecuniary damage caused to a citizen or legal entity in the course of notarial activity.
The insured event is the fact, established by a court or acknowledged by the insurer, that such damage was caused by the notary's actions (or omissions), including:
- performing a notarial act contrary to the law;
- unlawfully refusing to perform a notarial act, confirmed by the notary's ruling;
- disclosing information about notarial acts performed.
Minimum sums insured
| Category | Minimum sum insured |
|---|---|
| Notary with an office in an urban settlement | RUB 2,000,000 |
| Notary with an office in a rural settlement | RUB 1,500,000 |
| Notary certifying mortgage agreements and real estate transactions | RUB 5,000,000 |
| Collective contract of a regional notary chamber — per notary | RUB 500,000 |
Compensation is paid in the amount of the actual damage suffered, but not exceeding the sum insured.
Contract term and premium
The contract is concluded for at least one year and takes effect when the first premium is paid, unless the contract or the law provides otherwise. Damage caused while the contract is in force is compensated within the limitation period established for property insurance. The insurer sets the rate according to the risk, including the notary's experience and any past cases of compensating damage.
Order of compensation
Article 17 of the Fundamentals sets up multi-level protection for the client. Damage caused through the fault of a notary in private practice is compensated:
- from the insurance payout under the notary's individual insurance contract;
- if that is insufficient, under the collective insurance contract concluded by the notary chamber;
- then from the notary's personal property;
- and finally from the compensation fund of the Federal Notary Chamber.
The state is not liable for damage caused by a notary in private practice. If a transaction was certified by several notaries, their liability for its invalidity is, as a rule, joint and several.
What a notary should consider when choosing a policy
- The insurer must be accredited by the Federal Notary Chamber.
- The sum insured should match the nature of the notarial acts: if you certify real estate transactions, the minimum is RUB 5,000,000, but for large transactions it is sensible to choose a higher amount.
- Check the exclusions, the procedure for notifying the insurer and the retroactive period terms.
- Keep cover continuous — notarial acts may not be performed without a valid policy.
Notary liability insurance is a form of professional liability insurance — learn more in the Professional liability section. Similar protection for another profession is covered in Auditor liability insurance. Law reviews are in the Laws section; to request a quote, use the request form.