Compulsory insurance
Compulsory civil liability insurance for owners of hazardous facilities
An industrial accident can affect not only employees but also residents of neighbouring buildings, visitors and other people's property. Kazakhstan law requires owners of hazardous facilities to insure their liability to third parties so that victims receive compensation regardless of the company's financial position. Insurance Center will calculate the premium for your facility and compare offers from licensed insurers.
Who must be insured
Insurance is compulsory for owners of facilities that are subject to an industrial safety declaration. These are hazardous operations where hazardous substances are used, stored or processed, pressure equipment is operated, mining is carried out, or other processes with a risk of accident take place. The list of registered declarations is published by the authorised civil protection body.
The contract is concluded for a term of no more than 12 months. If the activity lasts less than a year, the contract covers the period of activity, but no less than 6 months. If a company has several facilities, each is calculated separately.
What the policy covers
Harm to life and health
- death of a victim — up to 1,000 MCI per person;
- group I disability — up to 800 MCI, group II — up to 600 MCI;
- group III disability and a child with a disability — up to 500 MCI;
- injury without disability — actual expenses, but no more than 300 MCI.
Damage to third-party property
- damage to or destruction of property of individuals and organisations as a result of an accident;
- payment within the sum insured under the contract;
- the facility owner's own property is not covered.
Sum insured
The sum insured is fixed by law and depends on the maximum possible number of victims. This figure is taken from the facility's industrial safety declaration.
| Maximum possible number of victims | Amount, MCI | Amount, ₸ (MCI 4 325 ₸) |
|---|---|---|
| over 4,000 people | 600 000 | 2 595 000 000 |
| 2,001–4,000 people | 350 000 | 1 513 750 000 |
| 1,501–2,000 people | 225 000 | 973 125 000 |
| 751–1,500 people | 115 000 | 497 375 000 |
| 301–750 people | 50 000 | 216 250 000 |
| 151–300 people | 30 000 | 129 750 000 |
| 76–150 people | 12 000 | 51 900 000 |
| 11–75 people | 5 000 | 21 625 000 |
| up to 10 people | 1 000 | 4 325 000 |
Rate and cost
The rate is agreed by the parties within a range of 0.72% to 2.02% of the sum insured, depending on the facility's hazard level. In the Insurance Center calculator you can choose the minimum level (0.72%), medium (1.37%) or maximum (2.02%). For example, for a facility with up to 10 potential victims the premium will be from 31 140 ₸ to 87 365 ₸.
Increasing factor: the facility's hazard level is determined annually by the authorised body. If it is above the industry average, the rate increases by 10% for each percentage point of excess. However, the final rate cannot exceed 2.02%.
How the premium is calculated
The calculation has two steps. First, the facility category and the corresponding sum insured from the table are determined based on the industrial safety declaration. Then the rate agreed with the insurer within the statutory range is applied. For example, for a facility with 11 to 75 potential victims the sum insured is 21 625 000 ₸, and the premium will be 155 700 ₸ at the minimum rate and 436 825 ₸ at the maximum.
The insurer assesses the hazard level taking into account the type of production, the substances and equipment used, the condition of safety systems and the accident history. If there are several facilities, each is insured according to its own category, so the total cost of the programme is the sum of premiums for the individual facilities. Comparing offers from several companies shows what rate insurers are ready to offer for your particular facility.
What to check
- the number of victims in the current industrial safety declaration;
- that the tenge amount is correct based on the MCI on the contract date;
- the justification of the rate and the application of the increasing factor;
- the premium payment deadline: by law it is paid in a lump sum within 10 days of conclusion, unless the contract provides for instalments;
- a separate policy for each hazardous facility.
How to apply
Calculation on the Insurance Center website
Enter the maximum possible number of victims and the facility's hazard level to get an indicative premium.
Comparing offers
We will request terms from several insurers and show you the differences in rates and payment procedure.
Signing and payment
You provide the declaration and information about the facility, sign the contract and pay the premium within the set deadline.
What to do in the event of an insured event
- Take measures to contain the accident and help the victims, and call the emergency services.
- Notify the insurer of the event immediately, within the period specified in the contract.
- Keep the documents issued by the authorities on the causes of the accident.
- Provide the insurer with information about the victims and the damaged property.
- Follow the processing of victims' claims until they receive their payments.
This material is for reference only; the final terms are set by the insurance rules and the contract.
How Insurance Center can help
Insurance Center is an insurance agency that compares offers from licensed insurers. We will check the facility category, help justify the rate and support claims settlement in the event of an accident. Calculate your policy online or call: +7 727 225 40-40.
