LEKS KINDLUSTUS

ANNOUNCEMENT

16.11.98

 

BANKRUPTCY PROCEDURE AGAINST A DEBTOR 

 

Yesterday Leks Kindlustuse AS filed to Tallinna Linnakohus (Tallinn City

Court) an application of announcing the bankruptcy of an oil company AS 

Õliekspress, since AS Õliekspress has not been able to pay to Leks Kindlustus

1.9 million EEK recourse, and the company shows the signs of constant insolvency.

 

In October 1997, AS Õliekspress and 7 Estonian insurance companies concluded a 

coinsurance contract, which insured the guarantee liability of AS Õliekspress to

the oil company Neste Eesti AS in the amount of up to 10 million EEK. After the 

merger with ETAS Kindlustus, Leks Kindlustuse AS carries a 25% insurance risk.

Since Õliekspress has not been able to meet its liabilities to Neste Eesti on time

and did not pay for the fuel and oil purchased on the term, Neste Eesti AS 

filed a civil case in Tallinna Linnakohus against AS Õliekspress and the main

underwriter Leks Kindlustus. In order to secure the court case, the court arrested 

the bank accounts and assets of AS Õliekspress. Leks Kindlustus has paid the 

insurance claims coming from the coinsurance contract, in total of 1.9 million EEK.

Not all of the underwriters have made a final decision yet about the payment of the 

claim.

 

In accordance with the insurance conditions, AS Õliekspress is obliged to pay to the 

underwriter the claims paid. Therefore, Leks Kindlustus and AS Õliekspress started 

the negotiations about the payback schedule of the guarantee payment immediately 

after the claims were paid. Since AS Õliekspress has not paid the determined amounts 

in accordance with the schedule, Leks Kindlustus turned to Tallinna Linnakohus

(Tallinn City Court) to file the bankruptcy of AS Õliekspress.

 

In addition to the arrest of the accounts of AS Õliekspress, Neste Eesti AS has also

tried to close one of the bank accounts of Leks Kindlustus, presenting a respective 

application to Tallinna Linnakohus. The court granted the application of Neste Eesti 

AS. However, after Leks Kindlustus explained its side, the court acknowledged the

arrest of the account to be unreasonable and annulled its ruling. Then, Neste Eesti AS 

presented an application to Tallinna Ringkonnakohus (Tallinn District Court) to 

annul the ruling of Tallinna Linnakohus. Tallinna Ringkonnakohus has annulled the 

ruling of Tallinna Linnakohus, and Leks Kindlustus intends to present a motivated 

complaint to this decision. Leks Kindlustus does not acknowledge Neste's court case,

since Leks Kindlustus has already paid the claims in accordance with the coinsurance 

contract, and therefore the request should be presented to the other underwriters.

 

Eesti Vabariigi Kindlustusinspektsioon (Insurance Inspection of the Republic of Estonia)

has given a formal opinion on the given events, and finds that in case of 

coinsurance, the underwriters share the risks in accordance with the 

coinsurance contract concluded, following the principle of partial responsibility.

Also, the Insurance Inspection finds that the arrest of the insurance companies'

accounts is completely unreasonable, since the insurance company provides the

reserves in order to secure the liabilities proceeding from the insurance activities,

as it is determined in the insurance law.

 

 

Additional information,

Rivo Saarna

Manager of Public Relations

+372 6 267 281, +37 250 65 768