ФЗ
Adopted by the State Duma on February 13, 1998
Approved by the Council of Federation on March 12, 1998
Summary:
This federal law determines the terms and procedures for effecting the state life and health insurance for permanent, contract, conscript and reserve members of the military (all services), the staff of penitentiaries
(Interior Ministry), and members of the Federal Tax police.
The law determines the events which trigger the right to insurance. Significantly, the insurance covers a period of up to a year after the individual has performed a qualifying service. The contingencies triggering insurance benefits for service personnel and/or their families are dealt with in detail.
The law also determines who may qualify for compulsory state insurance; exhaustively defines who may benefit from the insurance in the event of the qualifying person’s death in a variety of familial and personal circumstances; determines which domestic insurance companies can provide insurance and the supervision they must accept; defines which events are insured; specifies the rates of insurance in relation to specific events; outlines the longevity and practicalities of undertaking an insurance contract; specifies the obligations of insurer and the other parties concerned; deals with the procedure of settlement and the relationship between the insurer and the insured; and outlines dispute settlement measures.
The law is a substantial attempt to address all the contingencies which may arise from military or related activities in peacetime.
The Instruction for the organization of compulsory state insurance of life and health of military persons of the Russian Federation President’s Service of Special Objects was approved by Order No. 14 of the RF President’s Main Board of Special Programs on June 29, 2001.
The Instruction for the organization of compulsory state insurance of life and health of military persons of the Federal governmental communication and information bodies and citizens called for military periodic training was approved by Order No. 15 of the FAPSI on January 31, 2000.
The Instruction for the procedure for effecting the compulsory state insurance of life and health of military persons of the staff of penitentiary facilities and bodies of the RF Ministry of Justice was approved by
Order No. 254 of the RF Ministry of Justice on August 30, 1999.
The Instruction for the organization of compulsory state insurance of life and health of military persons of the Federal security service and citizens called for military periodical training was approved by
Order No. 57 of the Federal Security Service of the Russian Federation on February 15, 1999.
The Instruction for the procedure for effecting the compulsory state insurance of life and health of the staff of internal affairs bodies, military persons, called for military periodical training was approved by Order
No. 825 of the RF Ministry of Internal Affairs on December 16, 1998.
The Instruction for the organization of compulsory state insurance of life and health of military persons and citizens called for military periodical training at the Ministry of Defense of the Russian
Federation was approved by Order No. 455 of the RF Ministry of Defense on October 10, 1998.
The Instruction for the organization of compulsory state insurance of life and health of military persons and for the procedure for paying lumpsum grants in the FPS of Russia was approved by Order No.
528 of the FPS of the Russian Federation on September 18, 1998.
The Instruction for the organization of compulsory state insurance of life and health of the staff of federal taxation police bodies was approved by Order No. 192 of the Federal Taxation Police Service of the
Russian Federation on June 7, 1999.
The present Federal Law determines the terms and procedure of effecting the compulsory state insurance of life and health of military persons, citizens called up for military periodical training, the ranks

and commanding officers of internal affairs bodies of the Russian Federation, the staff of penitentiary facilities and bodies and that of federal taxation police bodies (hereinafter referred to as the military persons and persons equated to them in compulsory state insurance).
The effecting of the compulsory state insurance of life and health of military persons and persons equated to them in compulsory state insurance (hereinafter referred to as the compulsory state insurance) in the period of mobilization, martial law, and war time shall be determined by legislative and other standard legal acts of the Russian Federation.
Article 1. Objects of compulsory state insurance
1. The objects of the compulsory state insurance are the life and health of military persons and persons equated to them in compulsory state insurance.
2. The life and health of the military persons and persons equated to them in compulsory insurance are subject to compulsory state insurance from date of the onset of military service, service in the internal affairs bodies of the Russian Federation, in penitentiary facilities and bodies, federal taxation police bodies
(hereinafter referred to as service), during military periodic training to the date of termination of military service, service, military periodical training. When the insured events laid down in the second and third paragraphs of Article 4 of the present Federal law occur, the military persons and persons equated to them in compulsory state insurance are considered to be insured within a year after the termination of military service, service, military periodic training if death or disability occurred due to an injury (wound, trauma, contusion) or a disease occurring during their military service, service, or periodic military training.
3. If the life and health of the military persons and persons equated to them in compulsory state insurance are subject, except for the grounds stipulated by the present Federal Law, to compulsory state insurance, as well as in accordance with other federal laws and standard legal acts of the Russian
Federation, the above military persons and persons equated to them in compulsory insurance or the members of their families are paid insured sums at their choice only on one ground.
Article 2.
Subjects of compulsory state insurance
1. The insurers under compulsory state insurance (hereinafter referred to as the insurers) may be insurance enterprises that have a compulsory state insurance permit (license) and have concluded compulsory state insurance contracts with insurants.
The insurers shall be elected on a competitive basis.
2. The insurants under compulsory state insurance (hereinafter referred to as the insurants) are federal executive bodies wherein military service, service, military periodical training are laid down by the legislation of the Russian Federation.
3. The insured under compulsory state insurance (hereinafter referred to as the insured persons) are military persons and persons equated to them in compulsory state insurance).
The beneficiaries under compulsory state insurance (hereinafter referred to as the beneficiaries) are the husband (a wife) of an insured person, who was married on the day of his/her death, the parents
(adoptive parents) of the insured person, the grandfather and grandmother of the insured person provided that his/her parents are absent, if they brought him/her up or kept for at least three years, the stepfather and stepmother of the insured person provided that they brought him/her up and kept for at least five years, his/her children under 18 years or those above this age if they became handicapped under the age of 18 years, as well as those who study at educational establishments irrespective of their organizational and legal entities and the form of property to the termination of their training or until they reach the age of 23 years, those under the guardianship of the insured person.
Article 3. Special procedure for licensing the activity of the insurers and additional measures to supervise their activity
1. Compulsory state insurance permits (licenses) shall be issued to the insurance enterprises by the federal insurance activity surveillance body if they meet the requirements established by the current legislation for state secret protection.
2. The insurance companies whose authorized capital has been formed without foreign investments and which have at least one-year practical experience in the field of personal insurance and financial reliability indices that have been established by the federal insurance activity surveillance body and that assure the financial provision of the insurance obligations done on their responsibility shall be permitted to be engaged in compulsory state insurance.
3. An additional control over the insurers’ activity shall be exercised by supervisory councils
(committees) that consist of the authorized representatives of insurants and insurers.
Article 4.
Insured events

Insured events under compulsory state insurance (hereinafter referred to as the insured events) shall be: death of an insured person during his/her military service, service, military periodical training or within a year after his/her discharge from military service, from service, after termination of military periodical training due to an injury (wound, trauma, contusion) or disease received during his/her military service, service, military periodical training; disability of an insured person, ascertained during his/her military service, service, military periodical training or within a year after his/her discharge from military service, from service, after termination of military periodical training due to an injury (wound, trauma, contusion) or disease received during his/her military service, service, military periodical training; a severe or mild injury received by an insured during his/her military service, service, military periodical training; pre-term discharge of a military person serving in the forces due to call-up, a citizen called-up to military training for the military post for which the military rank of up to a master sergeant (a petty officer) inclusive is stipulated by the staff list of a military unit from military service, whom are found by a military medical commission to be partially fit for military service due to an injury (wound, trauma, contusion) or a disease received during his/her military service.
Article 5. Rates of insured amounts
1. The rates of insured amounts to military persons and persons equated to them in compulsory state insurance), and, in case of their death, their beneficiaries shall be determined from the monthly upkeep salaries of these military persons and persons equated to them in compulsory state insurance, which include monthly salaries of their post and those of their military (special) rank.
At the same time the rates of insured amounts to the military persons serving in the forces by call-up shall be determined from the minimum monthly salary of their post and those on their military rank, established for the military persons serving in the forces under a contract. On calculating the insured amounts, the monthly upkeep salaries (hereinafter referred as to the salaries) determined on the day of paying out the insured amounts.
2. When the insured events take place, the insured amounts shall be paid out in the following rates: if an insured person is killed (or dies) during his/her military service, service, military periodical training or within a year after his/her discharge from military service, from service, after termination of military periodical training due to an injury (wound, trauma, contusion) or disease received during his/her military service, service, military periodical training, each beneficiary will be paid 25 salaries; if disability of an insured person is ascertained during his/her military service, service, military periodical training or within a year after his/her discharge from military service, from service, after termination of military periodical training due to an injury (wound, trauma, contusion) or disease received during his/her military service, service, military periodical training, the insured amount will be paid as follows:
75 salaries to a group I disabled person;
50 salaries to a group II disabled person;
25 salaries to a group III disabled person.
If during his/her military service, service, military periodical training or within a year after his/her discharge from military service, from service, after termination of military periodical training a disability group is increased at his/her re-examination at the state socio-medical expertise service for the insured person due to the above causes indicated in the present Clause, the insured amount will be increased by the sum that amounts to a difference between the salaries due to the newly established disability group and the number of those due to the former disability group; if an insured person receives a severe injury (wound, trauma, contusion) or a mild one (wound, trauma, contusion) during his/her military service, service, military periodical training, he/she will be paid 10 or 5 salaries, respectively; if a military person serving in the forces due to call-up, a citizen called-up to military training for the military post for which the military rank of up to a master sergeant (a petty officer) inclusive is stipulated by the staff list of a military unit from military service, who are found by a military medical commission to be partially fit for military service due to an injury (wound, trauma, contusion) or a disease received during his/her military service, he/she will be paid 5 salaries.
Article 6. Compulsory state insurance contract
1. A compulsory state insurance contract (hereinafter referred to as the insurance contract) shall be concluded between the insurant and the insurer in favor of a third party – an insured person (beneficiary).
2. The insurance contract shall be made in writing for a calendar year. The procedure for prolongation the above contract shall be specified upon its conclusion.

3. The insurance contract shall include an agreement on insured persons, on the duties and responsibility of the insurant and the insurer, a list of insured events and the ways of transfer (payment) of insured amounts to the insured person (beneficiary).
4. Legal relationships shall be between the insurant and the insurer after conclusion of the insurance contract.
Article 7.
Performance of obligations under compulsory state insurance by the insurant
1. If the insurant has failed to effect compulsory state insurance or concluded an insurance contract on the terms and conditions that deteriorate the position of an insured person (beneficiary) as compared with those determined by the present Federal Law, in case of an insured event it shall incur liability to the insured person (beneficiary) on the same terms as on those the ensued amount should be paid out under due insurance.
2. On employing or calling up for military service, service, military periodical training, the insurant is to acquaint the insured persons with the rules of compulsory state insurance contract, with the procedure of issuing the documents required to take a decision on the payment of insured amounts and with methods of their payment.
3. For timely payment of insured amounts, the military units, institutions, organizations (hereinafter referred to as the military units), military commissariats, military medical establishments, institutions, and organizations of the insurant, as well as state socio-medical expertise service facilities at the place of service
(residence) of insured persons (beneficiaries) are to render them assistance in vindicating and drawing up the documents required to take a decision on the payment of insured amounts.
The military units, military commissariats, military medical establishments, institutions, and organizations of the insurant are to report the occurrence of insured events at the inquiry of the insurer and send the latter the required information of the circumstances of occurrence of these events.
4. The commanders (heads), officials of military units who are responsible for compulsory state insurance, and the heads and officials of the insurant’s institutions and organizations that are guilty of groundless refusal to present the insured persons (beneficiaries) the documents required to take a decision on the payment of insured amounts shall bear responsibility according to the procedure established by the legislation of the Russian Federation.
Article 8.
Financing of expenses on compulsory state insurance
1. Compulsory state insurance shall be effected at the expense of the funds allocated to the insurants for these purposes from the appropriate budgets.
2. The compulsory state insurance of those sent on a mission according to the procedure established by the legislation of the Russian Federation shall be effected at the expense of the funds allocated for these purposes by the appropriate federal executive body from which the above persons have been sent on a mission.
Article 9.
Insurance premium and insurance contributions
1. The rate of cover under compulsory state insurance shall be determined by the insurer as agreed with the insurant and federal executive body that ensures the pursuance of a common state financial and budgetary policy.
2. The rate of insurance under compulsory state insurance may not exceed three percent of the upkeep fund for military persons and persons equated to in compulsory state insurance of the appropriate
Federal body of executive power.
3. The insurer’s expenses on effecting compulsory state insurance, which are to be reimbursed by the insurant, may not exceed six percent of the amount of an insurance contribution.
Article 10. Grounds for exemption of the insurer from payment of insured amount
1. The insurer shall be exempted from payment of an insured amount under compulsory state insurance if an insured event: has occurred due to the insured person’s action found socially dangerous according to the procedure established by court; is in the direct causal relation established by court to the alcoholic, narcotic, or toxic intoxication of an insured person; is a result of the legally verified damage caused deliberately by an insured person to his/her health liberate or his/her suicide.

The insurer shall not be exempted from payment of an insured amount in case of death of an insured person, if death of the latter has occurred due to his/her suicide and by this time the insured person has been serving in military service for at least two years.
2. A decision on refusal to pay an insured amount shall be taken by the insurer and informed to an insured person (beneficiary) and the insurant in writing by providing an obligatory reasoned substantiation of causes of the above refusal in the period established by the present Federal Law for payment of an insured amount.
Article 11.
Procedure and terms of payment of insured amounts
1. Insured amounts shall be paid by the insurer on the basis of documents that confirm the occurrence of an insured event. The list of documents required taking a decision on payment of the insured amount shall be established by the Government of the Russian Federation.
The severity of injuries (wounds, traumas, contusions) in insured persons shall be estimated by the medical agencies of federal executive bodies wherein the legislation of the Russian Federation provides military service, service, military periodical training. The list of injuries (wounds, traumas, contusions) documents required to take a decision on payment of the insured amount shall be established by the
Government of the Russian Federation.
2. Insured amounts shall be paid irrespective of the amounts due to insured persons under other types of insurance contracts, except for the cases established by Clause 3 of Article 1 of the present Federal
Law.
3. Payment of insured amounts to insured persons (irrespective of the place of their military service, service, military periodical training) and, in case of their death, to beneficiaries (irrespective of the place of their residence) shall be made by the insurer on the territory of the Russian Federation by transferring the due amounts in rubles by the ways stipulated by an insurance contract.
4. Payment of insured amounts shall be made by the insurer within fifteen days from the date of receipt of the documents required to take a decision on the above payment. If the insurer has delayed the payment of insured amounts without any grounds, the insurer shall pay an insured person (beneficiary) a penalty in the amount of one percent of the insured amount for each day of delay from its own funds.
Untimely payment of the insured amounts by the insurer due to the fact that the insurant has delayed to make its insurance contributions is not a reason to pay the penalty.
Article 12. Procedure of mutual settlements of the insurant and insurer
1. If there were changes in the rate of salaries in insured persons and in their number within the period of an insurance contract, the insurance contributions not received or received in excess due to the above circumstances are to be additionally paid or repaid.
By the agreement of the parties that have conclude the insurance contract the above amounts may be taken into account in determining the amounts of insurance contributions for the following period of the insurance contract.
2. The frequency of making insurance contributions by the insurant shall be laid down by the insurance contract.
Article 13. Examination of disputes
Disputes associated with compulsory state insurance shall be settled according the procedure established by the legislation of the Russian Federation.
Article 14. Entrance of the present Federal Law in force
1. The present Federal Law shall enter into force on July 1, 1998.
2. Propose the President of the Russian Federation and entrust the Government of the Russian
Federation that they shall bring their standard legal acts in line with the present Federal Law.
President of the Russian Federation
Moscow, Kremlin
March 28, 1998
No. 52ФЗ
B.Yeltsin