It should be noted that the bill provided for an amendment to the Federal Law “On the Organization of the Insurance Business in the Russian Federation,” exempting the insurer from paying insurance compensation under a voluntary insurance contract in which the subject of insurance is the property interests of legal entities or individual entrepreneurs, if the insured event occurred as a result of gross negligence on the part of the policyholder or the beneficiary, including in connection with failure to comply with mandatory requirements, unless the contract provides otherwise.

Currently, such an exemption generally applies only if the insured event occurred as a result of the intent of the policyholder, the beneficiary, or the insured person.

We previously reviewed the proposed changes in detail and noted that the bill requires further refinement.

On April 23, the Presidential Council for the Codification and Improvement of Civil Legislation (“the Council”) issued a negative opinion on the bill, which likely led to its withdrawal by the sponsors.

The Council’s opinion highlights a number of conceptual shortcomings in the bill, some of which we also pointed out in our review.

We will prepare an analysis of the Council’s arguments in the near future.

Stay tuned for updates!