Asirom VIG insures up to EUR 40 million directors and members of the management of the electricity distribution company owned by Electrica against management errors that cause damage to third parties (eg shareholders, company, employees, business partners, authorities). etc). The bottom line is that Asyrom has also been sued and has money to collect from the company he just insured.

In particular, Asirom will provide professional indemnity insurance services for the administrators, CEO and executive directors of Distribuție Energie Electrică Romania (DEER), a company in which Electrica SA has more than 99.9% of shares.

The 12-month insurance contract is worth almost 2 million lei and was signed at the end of last month, according to an announcement published on October 17 in the Electronic System for Public Procurement (SEAP).

Insurance broker Fast Brokers also applied for the auction, but the winner was Asirom VIG.

What damages and injuries are covered by a liability insurance policy

The tender specification states that the insurance policy must cover the civil liability of the insured persons for damages/injuries caused by them through the fault of third parties (for example: shareholders; company, employees; business partners; authorities, etc.), on the occasion of or in connection with performance of managerial functions/authorities.

The insurance policy advances defense costs and expenses (including attorneys’ fees) arising out of the investigation and defense of a claim against the insured.

The policy also covers any legal costs or expenses awarded to the insured in favor of the claimant (as a result of a judgment or other final judgment).

Damages are paid by the insurer to the claimant on behalf of the insured/insureds responsible for causing the damage.

The insured person is any natural person who was, is or will become during the insurance period:

– member of the board of directors,

– CEO,

– executive director with the mandate of DEER SA

The policy also covers culpable acts committed by authorized persons.

The authorized person means a person whom the company directly required to replace (assume his duties, responsibilities and powers in a timely manner) one of the insured persons while he is unavailable (the owners are absent from the company – delegation of powers, holidays, vacations, medical leaves, etc. or in any other situation resulting from internal documents that regulate the delegation of authority).

The maximum liability limit of Asirom will be 40 million euros

The document also shows that the liability limit will be 40 million euros for all insured persons. The limit per event per insured person is a maximum of 10 million euros. This is practically the amount of money Asirom VIG will pay if any of the events specified in the contract occur.

This compensation limit covers the following events:

• Incorrect practice employer, claims directed against insured persons: within the limit of liability under the policy.
• Fines and civil sanctions: within the limit of liability under the policy (according to point e above).
• Article “Involuntary manslaughter”. – covers the costs of the defense in connection with any criminal proceedings brought against the Insured by or on behalf of any Insured in respect of any claim relating to any manslaughter caused by the Insured by persons in connection with the performance of management functions or in connection with them. . Within the limit of liability under the policy (according to clause e above).
• Item “Previously insured persons” – The insurer shall pay to previously insured persons or on their behalf any losses caused by claims for damages first brought against the insured persons after the date of expiry of the period of insurance, but not later than 36 months, during the culpable act committed before the person has ceased to hold a managerial position, provided that the policy is not extended or replaced by any other policy that covers the civil liability of managers.

Former Insured Person means an Insured Person who has ceased to hold a managerial position during the Policy Period solely due to age, health or restructuring, provided that no merger or acquisition has taken place and the Company is not insolvent/bankrupt.

The retroactive period is calculated from January 1, 2021.

A surprise from the company’s list of controversies: even Asirom has money

The tender documents also contain a request from participants interested in this contract who would like to know a list of ongoing disputes that may affect the activation of the liability of the administrators, CEO and executive directors (including details related to the disputes).

• SEE HERE WHAT COMPETITIONS THE ASIROM INSURED COMPANY HAS

DEER published these details, which show that there are disputes in which tens of millions of lei are claimed, but also the chances of winning.

• The surprise is that such lawsuits are even with Asirom VIG.

It is about a regressive action the insurer

Asirom VIG is demanding payment of more than 2.8 million lei, an amount which represents the compensation paid by Asirom to the company it insured, namely SC Ciocorom SRL, which suffered losses following the fire on July 7, 2013.

The statement said DEER was responsible for the power surge after the power outage that allegedly caused the fire.

The case is pending in the Bihor Court, with a 50% chance of success and at first instance the Court dismissed the suit filed by Asirom VIG on June 21, 2022. The insurer may file an appeal within 30 days.

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