By Berry Rittenbaum
From AA&B March 1963
In August of 1962, I made my fourth trip to Russia. I was met at the airport in Moscow by an Intourist car which took me to the Leningradski Hotel. Intourist is the official Russian Travel Bureau. After checking in at the hotel, I went to an Intourist office located on the mezzanine of the hotel to arrange my city tour. I was as-signed an attractive guide by the name of Vevetilnaye Faina. All the tours she suggested I had already taken.
She then asked if there was anything special I might like to see. I jokingly asked if an interview could be arranged with the Director of Insurance. To my surprise, she stated she would try to get her Intourist office manager to arrange an interview. The next morning she pridefully informed me that an interview had been arranged at 2:30 p.m. that afternoon. At 2 p.m., we met in the lobby of the Leningradski Hotel. An Intourist car with chauffeur was waiting for us in front of the hotel.
It was about a 15 minute ride across the wide streets of downtown Moscow. The Kremlin and Red Square are in the center of Moscow, but as far as I could ascertain, there is no such thing as a business section. The Insurance Office was on the second floor of a small, old, decrepit building. There were three small offices and a larger one about eight by 10 feet, was the Head Insurance Director's office.
Present at the interview were the director, two assistants and my guide, who was to act as interpreter as they spoke no English and I speak no Russian. The director's name was Feder Guarrilovilla. He had held his position for about 18 months. His previous job had been with the Finance Department.
He explained that all insurance policies were sold through his department, but all collections went to the Finance Department. All losses, expenses and salaries were paid by the Finance Department, therefore, they did not know whether the Insurance Department made a profit or not, nor whether the rates were too high or too low. This department handles life fire, auto, and personal accident insurance. There is no health insurance. There is another department which writes marine insurance and insurance for foreigners.
The Russian government owns the insurance company, as the Communist do not believe in private enterprise. They do not encourage or publicize the purchase of insurance as they do not believe, under socialism; there is any need for it. The minimum amount of life insurance is 100 rubles. A ruble is worth a little less than a dollar. The maximum is 3,000 rubles. No medical examination is required up to 500 rubles. One ruble is paid by the applicant for the examination. As the doctor works for the government, the ruble goes to the Finance Department. Policies are in contestable regarding pre-existing conditions after they have been in force for two years.
Fire, theft and collision can be written on an automobile at a rate of 10% of the cost of the car. They do not write any liability and property damage insurance. The government pays any claims of this kind. Personal accident insurance is written on the basis of profession. The maximum amount of coverage written is 100 rubles per month. All hospitals and doctors are socialized. Teeth are pulled with no charge, but fillings or bridges must be paid for.
The most popular life insurance policies are the Five- and Ten-year Endowments. The average cost per thousand is eight rubles per month. The agent earns 6% per ruble commission if he does real well; he gets an extra 3%. Average earnings are 130 to 160 rubles per month. The maximum commission an agent can earn is 180 rubles per month.
Twenty-three percent of the Russian People carry life insurance. Most of the life insurance is sold to people between the ages of 16 and 60; however if an applicant is in good health he can be insured to age 70.
One thousand rubles is the maximum amount of fire insurance can be carried on household goods. Contents in a brick dwelling are insured at a cost of one ruble per thousand per month. Frame, 2 1/2 rubles per month.
