A community that always insures homogeneous objects is called a mutual insurance company (OIC). And the activities of society are non-commercial in nature. In the Russian Federation, the society of developers began to work in January 2014.
What exactly does the community insure? The consumer society of mutual liability insurance of developers guarantees to everyone who invested money in the construction of the house that, upon completion of construction, they will definitely receive their apartments.
What is OVS?
Any mutual insurance company is a non-governmental institution where a group of persons, legal or physical, insure each other on certain contractual terms. To create a consumer society of mutual insurance of developers, it is necessary for at least 30 developers with decent experience and good reputation to decide on the establishment of this organization.
Each participant can get insurance assistance in the joint venture. But at the same time, all participants also bear subsidiary responsibility, in case of lack of funds to fulfill obligations. OVS can be created in one of 2 forms prescribed by law:
• non-profit partnership;
• consumer cooperative.
In any case, if at least one of the entrepreneurial developers is bankrupt, the rest are responsible, in accordance with their share. And the share of each is directly proportional to the contribution. The legislation necessarily provides that none of the participants could receive income from activities.
Features of the insurance company developers
If you choose between a regular insurance company and an insurance company, then the insurance company wins. What are its features and why is the society of developers more profitable?
- This is a nonprofit organization.
- Mutual cooperation allows you to cover the risks of any participant.
- The organization is managed by a collegial body.
Since all participants are both insurers and insurers, there is essentially no “loser”.
The company of mutual insurance of civil liability of developers has the full right to insure the interests of those who are not members of the community. But it can act as an insurer only if such activity is reflected in its constituent documents.
Legislation Governing Such Organizations
Insurance relations are strictly regulated by the laws of the Russian Federation. Since the scope of business is often the scene of various swindlers. Abuse and fraud under the guise of housing is not uncommon. Therefore, control by the state in the form of licenses and standards is needed.
So, what laws govern the activities of insurers in principle?
There is a separate law No286- "On mutual insurance", approved in 2008.
Various departmental regulations of the Ministry of Finance clearly regulate licensing and rules regarding insurance reserves.
But since mutual insurance is an organizational form that is not considered state-owned and operates on the basis of mutual agreements of individuals, no restrictions on reserves are provided.
Society benefits
As an organization with a collegial management body, each society of mutual insurance of developers has a number of significant advantages:
- Flexibility in decision making.
- The services of such a company are lower in cost than the services of a commercial organization.
- The minimum entry fee is not regulated by the state.
- Insurance stocks of the company under the control of all participants in the company of developers.
- For developers, it is beneficial that the demand for housing increases at the beginning of construction, as people are not afraid of a scam and are ready to invest money initially.
- Minimum taxes.
- Possibility to choose a bank where contributions will be kept.
Another important advantage - developers can not apply for loans to the bank. When investors trust a construction company, they can invest the entire amount at once. In the interests of the consumer society, mutual insurance of civil liability of developers to maintain this trust.
Cons OVS
In addition to the obvious advantages, there are undoubted disadvantages in the entry into the society of mutual insurance of liability of developers. Consider them:
1. If there are few participants in OVS, then insurance payments will be low. After all, the insurance fund is formed precisely from the contributions of each participant.
2. Insurance claims are expected only at the end of the year.
3. No one gets any income.
4. Mutual responsibility.
The developer should also be aware that upon exiting the mutual insurance company from the consumer society, the entrepreneur will be responsible to other developers for another 2 years. For many, this condition is the main disadvantage.
How to join the society of developers?
A company that wishes to enter into a consumer society of mutual liability insurance of developers is required to provide the following set of documents:
1. Application for entry into the company.
2. Copies of the main constituent securities, notarized.
3. A certificate of the absence of litigation on the bankruptcy of a candidate for its members.
4. Certificate from the register. It is taken no later than a month before entry.
5. Documents confirming the absence of other subsidiary liability.
6. Information giving information about the place where the construction is planned.
7. Information regarding the compliance of the facilities already constructed by the builder with all construction standards.
The decision on the adoption of a new member of the company shall be made by the council of the Joint Forces Council. The council must inform about its decision within 30 days from the moment that they submitted the application for consideration. After approval of the application, the candidate is required to make the due contribution to the general "treasury". Only after that is he a full member of the community.
The consumer society of mutual insurance of civil liability of developers checks the candidate's reputation, his financial stability and experience. It is desirable that the candidate company has experience in construction for more than 3 years.
Reviews of current members
The center of the company of mutual insurance of developers is already in Moscow and soon plans to deploy branches throughout the country. In Europe, this insurance sector has long been popular, but in Russia is only just beginning to develop. Developers who are already in society do not regret their choice in favor of mutual insurance.
For the participant, the most important criterion is trust in the organization. In this regard, mutual insurance is more profitable. Perhaps, in a few years, all developers will switch to mutual insurance.