Aviation insurance is being cut in Russia, due to sanctions. They refuse to insure air crashes caused by “bad repair of aircraft”

Author:
Oleksiy Yarmolenko
Date:

The Russian reinsurance company RNRC (a subsidiary of the Central Bank) ceased to consider events related to poor maintenance or repair of aircraft as insured events. This company refuses to cover the risks due to the fact that the international aircraft manufacturers Boeing and Airbus stopped supplying spare parts to Russia and servicing its planes.

"Kommersant" writes about it.

At the beginning of the war in Ukraine, European insurance companies refused to work with Russian aviation, and all their insurance contracts were taken over by RNRC. Then it did not change the terms of the contracts in any way.

However, now many carriers have expired insurance contracts and are starting to conclude new ones with the RNRC, but some insurance cases began to "disappear" in the documents. For example, the company no longer wants to insure carriers in case of seizure or confiscation of aircraft. Subsequently, RNRC began to exclude from its insurance contracts any accidents caused by poor repair or maintenance of aircraft.

The publication notes that now plane crashes can lead to lengthy legal disputes between the carrier, passengers and the insurance company, which will drag on for years. This will seriously affect the possibility of payments to injured passengers. Some Russian carriers turn to other insurance companies in order to conclude contracts on "individual terms", but on what exactly — they do not announce.