Consumer mutual insurance society for developers: description, advantage and reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A community that always insures homogeneous objects is called a mutual insurance society (MUI). And the activity of the society has a non-commercial character. In the Russian Federation, the society of developers began to work in January 2014

What exactly does the community insure? The Consumer Mutual Insurance Society of Builders' Liability guarantees everyone who has invested in the construction of a house that they will definitely receive their apartments upon completion of construction.

What is OBC?

Any mutual insurance society is a non-governmental institution where a group of persons, legal or natural, insure each other on certain contractual terms. To create a consumer mutual insurance society for developers, it is necessary for at least 30 developers with decent experience and a good reputation to make a decision to establish this organization.

Geteach participant can receive insurance assistance in the OBC. But at the same time, in the event of a shortage of funds to fulfill obligations, all participants also bear subsidiary responsibility. The EIA 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. Legislation necessarily provides that none of the participants could receive income from activities.

Features of the developer insurance society

When choosing between an ordinary insurance company and an insurance company, the insurance company wins. What are its features and why is the community of developers more profitable?

1. This is a non-profit organization.
2. Mutual cooperation allows you to cover the risks of any participant.
3. The collegiate body manages the organization.

Since all participants are both policyholders and insurers, there is essentially no "loser".

The Developers' Mutual Liability Insurance Society has every right to insure the interests of those who are not part 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 business sector is oftenan arena for various swindlers. Abuse and fraud under the guise of housing construction is not uncommon. Therefore, state control is needed in the form of licenses and regulations. So, what laws regulate the activities of insurers in principle?

There is a separate law No286-FZ "On mutual insurance", approved in 2008Various 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 between individuals, there are no restrictions on reserves.

Community benefits

As an organization with a collegiate governing body, each developer mutual insurance society has a number of significant advantages:

1. Flexibility in decision making.
2. The services of such a society are lower in cost than the services of a commercial organization.
3. The minimum entry fee is not regulated by the state.
4. Insurance reserves of the company under the control of all members of the developer society.
5. For developers, it is beneficial that the demand for housing increases at the beginning of construction, as people are not afraid of scams and are ready to invest money from the very beginning.
6. Minimum taxes.
7. The ability to choose the bank where they will be storedcontributions.

Another important advantage is that developers do not have to apply for bank loans. When investors trust the construction company, they can invest the entire amount at once. It is in the interest of the consumer society mutual liability insurance of developers to maintain this trust.

Cons of OBC

Besides the obvious pluses, there are undoubted minuses in joining the mutual liability insurance society for developers. Consider them:

1. If there are few participants in the OBC, then insurance payments will be low. After all, the insurance fund is formed precisely from the contributions of each participant.

2. Payments for insured events are expected only at the end of the year.

3. Absolutely no one receives income.4. Mutual responsibility.

The developer should also be aware that when leaving the consumer mutual insurance society for developers, the entrepreneur will be responsible to other developers for another 2 years. For many, this condition is the main disadvantage.

How to join the developer society?

A company that wishes to join a consumer society of mutual liability insurance of developers must provide the following set of documents:

1. Application for membership in society.

2. Copies of the main constituent papers, certified by a notary.

3. Certificate of no bankruptcy proceedings against a candidate member.

4. Help from the Unified State Register of Legal Entities. Taken no later thanmonth before entry.

5. Documents confirming the absence of other subsidiary liability.

6. Information giving information about the place where construction is planned.7. Information regarding the compliance of objects already built by the developer with all construction standards.

The decision to accept a new member of the society is made by the Council of the Allied Council. The council must report its decision within 30 days from the moment the application was submitted for consideration. After the approval of the application, the candidate is obliged to pay the due contribution to the general "treasury". Only after that he is a valid member of the community.

Consumer Society for Mutual Liability of Developers checks the candidate's reputation, financial stability and experience. It is desirable that the candidate firm has more than 3 years of experience in construction.

Reviews from actual members

The Center for Mutual Insurance Developers already exists in Moscow and plans to place branches throughout the country soon. In Europe, this insurance sector has long been popular, but in Russia it is just beginning to develop. Developers who are already in the community have absolutely no regrets about their choice in favor of mutual insurance.

For a participant, however, the most important criterion is trust in the organization. In this regard, mutual insurance is more profitable. Possibly already inin a few years, all developers will switch to mutual insurance.