The Supreme Court of Ukraine has decided to launch proceedings on the basis of an appeal of Kniazha Vienna Insurance Group on the revision of a ruling of the higher business court of Ukraine of February 19, 2015 under the claim of Panama's Sabrosa Trading Company S.A. on collecting $931,243 (UAH 12.72 million) from the insurer.

According to a ruling of the Supreme Court of Ukraine of April 14, 2015, the court decided to demand for the materials of the case under the claim of Sabrosa Trading Company S.A. on the collection of the insurance indemnity, and the materials of the case under the counterclaim of the insurer asking for the voluntary cargo insurance policy to be declared as invalid.

The Supreme Court also ruled to stop executing the ruling of the business court of Kyiv of October 15, 2014.

According to the ruling, on March 30, the Supreme Court received an application from the insurer that asking for the ruling of the higher business court of Ukraine to be revised as the appeal court applied the same requirements of the substantive law in a different manner.

According to the ruling of the higher business court of Ukraine of February 19, 2015, in August 2014 Sabrosa Trading Company S.A. filed a claim against Kniazha Vienna Insurance Group asking to collect $931,243 from the insurer.

In turn, Kniazha Vienna Insurance Group filed a counterclaim against Sabrosa Trading Company S.A. asking for the voluntary cargo insurance policy of January 21, 2014 to be declared as invalid.

The primary claim was fully satisfied in favor of Sabrosa Trading Company S.A. The sum of $931,240, court fees of UAH 73,000, and lawyers' expenses of $10,000 were collected. The counterclaim of Kniazha Vienna Insurance Group against Sabrosa Trading Company S.A. was not satisfied.

The court also rejected the cassation appeal of Kniazha Vienna Insurance Group.

According to the ruling of the higher business court of Ukraine, on January 25, 2014, Kniazha Vienna Insurance Group issued the voluntary cargo insurance policy regulating the essential conditions for insuring cargo shipped by Azovxkiy Veter vessel from Kherson port to Poti port.

According to the policy, cargo was insured with an insurance wrap of $988,624, the insurance payment was $2,076, and the term for settling the insurance payment was until December 31, 2014.

On January 26, 2014 the Azovxkiy Veter vessel sailed from Kherson port across the Black Sea as part of an ice convoy with damaged ballast tanks.

On July 7, 2014 the insured party asked the insurer to compensate $939,879 minus the franchise payment, however the insurer did not agree to settle the payment, referring to the absence of information about the flag of the vessel that was to carry the insured cargo, its deterioration, bad weather and the non-application of rational safety measures during transportation.

Counterclaims were explained by the fact that the policy was signed after the insurance event and a representative of the insurer who signed the policy did not have power to sign the policy.

Kniazha Vienna Insurance Group was established in August 1997. It has 27 licenses for voluntary and compulsory insurance. The regional network covers the entire territory of Ukraine.

Since 2005, the company has been part of Vienna Insurance Group (headquartered in Vienna, Austria).