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On Compulsory Insurance of Civil Liability of Vehicle Owners

Updated Unofficial translation

The Law of the Republic of Kazakhstan dated 1 July, 2003 No. 446.

      Unofficial translation

      This Law regulates relations arising in the scope of compulsory insurance of civil liability of vehicle owners, and establishes the legal, financial and organizational grounds for its performance.

Chapter 1. General provisions

Article 1. Basic definitions used in the Law

      The following basic definitions shall be used in the Law:

      1) the estimated organization is the legal person having the license for the right of implementation of estimated activities for property assessment (except for intellectual property items, the cost of intangible assets);

      2) "bonus-malus" system - system of discounts and allowances being used in calculation of insurance premium amount being subject to payment under the compulsory insurance contract of civil liability of the vehicle owners, through the application of multiplying or decreasing rates to an insurant (insured person) depending on existence or absence of insured events due to his (her) fault with assignment of the relevant class in the system;

      3) an affected person – a person whose life, health, and (or) property is inflicted by harm as a result of the operation of vehicle, the responsibility on compensation of which is imposed on an insurant (insured person) as on the owner of vehicle according to the legislation of the Republic of Kazakhstan;

      4) a passenger – an individual that concluded the contract of carriage with a carrier in oral or written form;

      5) package contract – compulsory insurance contract of civil liability of the vehicle owners, concluded by an individual being owner of two and more units of transport vehicles mentioned in the insurance policy, and being valid in respect of only one insured individual;

      6) civil liability of the vehicle owner – the obligation of individuals and legal entities to compensate for harm caused to life, health and (or) property of third parties as a result of operation of vehicle as a source of increased danger established by the civil legislation of the Republic of Kazakhstan;

      7) operation of vehicle – use of vehicle for road travel, as well as for the travel on the territories being adjacent to them being well equipped or adapted and used for a flow of traffic;

      8) the owner of the vehicle is the natural or legal person owning the vehicle on an ownership right, the right of economic maintaining or the right of operational management or any other legal basis (the contract of property hiring, owing to the order of competent authority about transfer of the vehicle and another);

      9) traffic accident – an incident occurred in the course of operation of vehicle and with its participation, as well as of movement of parts and cargo being on the vehicle separated from it in the result of which the harm is inflicted to third parties;

      10) a beneficiary – a person that is a recipient of insurance payment in accordance with the Law;

      11) insured event – the event in occurrence of which the insurance contract provides carrying out of insurance payment;

      12) insured amount – a sum of money on which the object of insurance is insured and which represents the limiting volume of responsibility of an insurer upon occurrence of insured event;

      13) insurance premium – a sum of money that shall be paid by an insurant to an insurer for accepting the obligation by the latter to make insurance payment to the insurant (beneficiary) in amount determined by the insurance contract;

      14) insurance payment – a sum of money being paid by an insurer to an insurant (beneficiary) within the insured amount upon occurrence of the insured event;

      15) an insurer – a legal entity that obtained a license for the right to carry out insurance activity in the territory of the Republic of Kazakhstan in the manner established by the legislation of the Republic of Kazakhstan, being obliged to make insurance payment to an insurer or other person in favor of which the contract is concluded (beneficiary) upon occurrence of the insured event, within sum (insured amount) determined by the contract;

      16) an insured person – a person in respect of whom the insurance is carried out;

      17) an insurant - a person that concluded insurance contract with an insurer. An insurant is insured person at the same time, unless otherwise is provided by the insurance contract;

      18) standard contract – compulsory insurance contract of civil liability of vehicle owners concluded by an individual or legal entity being the owner of vehicle mentioned in insurance policy, and being valid in respect of one or several insured persons;

      19) direct settlement is the mechanism of settlement of an insured event at which indemnification, caused to life, health and (or) property of the victim in transport incident, the insurer with whom at the victim the contract of obligatory insurance of civil responsibility of vehicle owners within the volume of responsibility provided by the present Law is signed.

      Footnote. Article 1 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); from 29.12.2014 No. 269-V (shall be enforced from 01.01.2015); from 24.11.2015 No. 422-V (shall be enforced 01.01.2016).

Article 2. The legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of vehicle owners

      1. The legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of vehicle owners is based on the Constitution of the Republic of Kazakhstan and consists of the Civil Code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. If international treaty ratified by the Republic of Kazakhstan establishes other rules than those provided in this Law, the rules of international treaty shall be applied.

Article 3. Object of compulsory insurance of civil liability of vehicle owners

      The object of compulsory insurance of civil liability of vehicle owners (hereinafter – compulsory liability insurance of vehicle owners) shall be the property interest of the insured person, linked with its obligation established by the civil legislation of the Republic of Kazakhstan to compensate the harm inflicted to life, health and (or) property of the third parties as a result of operation of the vehicle as a source of increased danger.

Article 4. Purpose and basic principles of compulsory liability insurance of vehicle owners

      1. The purpose of compulsory liability insurance of vehicle owners shall the provision of protection of the property interests of third parties, life, health and (or) property of which the harm is inflicted as a result of exploitation of vehicles by carrying out of insurance payments.

      2. The basic principles of compulsory liability insurance of vehicle owners shall be:

      protection of property interests of the affected person in the volume and in the manner established by the Law;

      operation of the vehicle in condition of existence of insured policy on compulsory liability insurance of vehicle owners in its owner;

      ensuring of fulfilling the obligations by parties under the compulsory insurance contract of vehicle owners;

      economic interest of vehicle owners in improving road safety.

Article 5. Persons the civil liability of which shall be subject to compulsory insurance

      1. The civil responsibility of the owners as follows shall be subject to compulsory insurance:

      Note RCLI!
      Subparagraph 1) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      1) passenger cars, the trucks, buses, minibuses and vehicles constructed on their base, motor-transport and trailers (semi-trailers) to them, registered (which are subject to the state registration) in divisions of authorized body on traffic safety and also trams and trolleybuses;

      2) those entered (imported) to the territory of the Republic of Kazakhstan on a temporary basis;

      Note RCLI!
      Subparagraph 3) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      3) the vehicles mentioned in subparagraphs 1) and 2) of this paragraph being delivered on their own steam from the organizations manufacturers, repair and trade organizations, bodies of customs control to the place of registration, as well as removed from the register by subdivision of authorized bodyon traffic safety due to the change of the residence place of the owner or change of the property right.

      2. Civil liability of the vehicle owner shall be subject to insurance for each unit of the vehicle operated by him (her).

      Conclusion of voluntary insurance contract of civil liability of vehicle owners shall not release the vehicle owner from the obligation on conclusion of compulsory insurance contract of vehicle owners.

      3. Compulsory insurance contract of vehicle owners shall not be concluded in the case of entry into the territory of the Republic of Kazakhstan registered in the other state of transport vehicle, the owner of which concluded insurance liability contract of vehicle owners recognized by the Republic of Kazakhstan in accordance with the terms of an international treaty concluded between this state and the Republic of Kazakhstan.

      Note RCLI!
      aragraph 4) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      4. Compulsory insurance contract of vehicle owners shall not be concluded by owners, the vehicles of which are not subject to the state registration and accounting (except for trams and trolleybuses) in subdivisions of authorized body on traffic safety in accordance with the legislation of the Republic of Kazakhstan.

      5. Civil liability of a person operating the vehicle by virtue of performance of his (her) official or employment duties, as well as on the basis of employment or other agreement with the vehicle owner or in the presence of the owner of vehicle on the basis of his (her) will without execution of written form of transaction shall not be subject to compulsory insurance.

      Footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); From 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication).

Chapter 2. Ensuring of the functioning of the compulsory liability insurance system of vehicle owners

Article 6. State control and supervision in the field of compulsory liability insurance of vehicle owners

      1. The state supervision of activity of insurance companies shall be exercised by National Bank of the Republic of Kazakhstan (further – authorized body) in accordance withthe legislation of the Republic of Kazakhstan.

      Note RCLI!
      aragraph 2 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      2. The state control over the implementation by vehicle owners of an obligation for conclusion of compulsory insurance contract of vehicle owners established by this law shall be carried out by subdivisions of authorized body on traffic safety at registration of vehicles and implementation of other powers in the field of control of observance of traffic regulations as well as regulations of the Republic of Kazakhstan in the field of traffic safety.

      3. The state control over the implementation by vehicle owners of an obligation for conclusion of the compulsory insurance contract of vehicle owners established by this law shall be carried out at automobile check points through the Frontier of the Republic of Kazakhstan matching customs border of the Eurasian Economic Union, bodies of state revenues.

      Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 31.01.2006 No. 125; dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009); dated 06.01.2010 No. 238-IV (order of enforcement see Article 2); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2011); dated 24.01.2011 No. 399-IV (shall be enforced from 01.01.2012); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); from 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication); from 07.11.2014 No. 248-V (shall be enforced after ten calendar days after day of its first official publication); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016); from26.12.2017 No. 124-VI (shall be enforced from 01.01.2018).

Article 7. Inadmissibility of operation of vehicle without compulsory liability insurance contract of vehicle owners

      1. Operation of the vehicle in case of absence of compulsory insurance contract of vehicle owners in its owner shall not be allowed.

      Note RCLI!
      aragraph 2 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      2. A person operating the vehicle shall be obliged to have insurance policy on compulsory insurance of vehicle owners and to represent it for checking by the servants of authorized body on traffic safety and officials of the transport control bodies being authorized to do so in accordance with the legislative acts of the Republic of Kazakhstan.

      Subdivisions of authorized body on traffic safety and transport control bodies shall be obliged to demand the presentation of the insurance policy of compulsory liability insurance of vehicle owners during checking documents of a person operating the vehicle.

      Footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244; from 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication).

Article 8. Special aspects of carrying out compulsory liability insurance of owners vehicle

      1. Before obtaining a license for the right of carrying out compulsory liability insurance of vehicle owners, a legal entity registered as an insurance organization shall be obliged to:

      1) to sign the contract of participation with Fund of guaranteeing insurance payments in the order determined by the law of the Republic of Kazakhstan on creation and activity of the specified Fund;

      2) join to the board of representatives in the manner and under conditions determined by the Law and the internal regulations of an insurance ombudsman, approved by the board of representatives;

      3) excluded by the Law of the Republic of Kazakhstan from 27.04.2015 No. 311-V (shall be enforced after ten calendar days after day of its first official publication);
      4) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011).

      2. Insurer carrying out compulsory liability insurance of vehicle owners shall publish his (her) consolidated financial statements on an annual basis, and in the absence of subsidiary (affiliated) organization (organizations) - non-consolidated financial statements and the audit report in the Kazakh and Russian languages ??in not later than two periodic printed publications distributed throughout the territory of the Republic of Kazakhstan, in the manner and within the terms established by the authorized body.

      3. The activity oriented to restriction or elimination of competition, provision or receipt of unreasonable advantages on the conclusion of compulsory liability insurance contract of vehicle owners of one insurer before the others, infringement of the rights and legal interests of insurants shall not be allowed.

      4. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).
      5. Is excluded by the Law of the Republic of Kazakhstan dated 07.05.2007 No. 244.
      Footnote. Article 8 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009); dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); from 27.04.2015 No. 311-V (shall be enforced after ten calendar days after day of its first official publication).

Article 8-1. Data base

      Footnote. Article 8-1 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011).

Article 8-2. Information being provided by for creation of a data base and term of its presenting

      Footnote. Article 8-2 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011).

Article 8-3. Obligated conditions of the treaty on provision of the information and (or) receipt of the insurance reports

      Footnote. Article 8-3 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011).
      Note RCLI!
      Article 9 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

Article 9. Information exchange

      1. Internal affairs bodies shall issue one copy of the documents to participants of transport incident or their representatives as well asinsurance companies, an insurance ombudsman at their request the documents confirming the fact of a loss occurrence as well as a case of infliction of the harm of life and health of affected person by a person hiding from the place of traffic accident including the copy of the minutes on traffic offense with the scheme of the accident.

      2. Internal affairs bodies, prosecution bodies, courts, health care organizations, other state bodies and organizations having an information about the traffic accident and its consequences shall be obliged to provide this information on a gratuitous basis in writing, certified by the stamp, to the insurer, an insurance ombudsman and Guarantee Fund of insurance payments if they apply.

      3. If it is impossible to notify by an insurant (insured person), affected person or their successors about occurrence of the traffic accident, the subdivisions of authorized body on traffic safety shall carry out informing the relevant insurer about this traffic accident.

      Footnote. Article 9 in edition of the Law of the Republic of Kazakhstan from 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication).

Chapter 3: Compulsory liability insurance contract of vehicle owners

Article 10. Compulsory liability insurance contract of vehicle owners and procedure for its conclusion

      1. Compulsory liability insurance of vehicle owners shall be carried out on the basis of the contract concluded between an insurant and an insurer in accordance with the Law.

      2. Compulsory liability insurance contract of vehicle owners shall provide the carrying out of insurance payments on the obligations created due to infliction of harm to life, health and (or) property of the affected person, except for compensation for moral harm and loss of profit of the affected person, including the loss of the commodity value of the property, as well as compensation of penalty due to violation of goods delivery or performance of works (rendering of services) by the affected person, its other obligations under the contracts (agreements).

      3. Compulsory liability insurance contract of vehicle owners shall be concluded only with an insurer having a license for the right to carry out the activity for this type (class) of compulsory insurance.

      Insurant shall have free choice while choosing an insurer.

      Insurer shall not have the right to refuse the insurant in conclusion of compulsory liability insurance contract of vehicle owners.

      Under the compulsory insurance contract of vehicle owners, an insurant shall be obliged to pay the insurance premium, and an insurer shall be obliged to make an insurance payment to beneficiary upon occurrence of the insured event in amount, manner and terms established by the Law.

      4. Compulsory liability insurance contracts of vehicle owners shall be divided into the following types:

      1) standard contract;

      2) package contract.

      5. Compulsory liability insurance contract of vehicle owners shall be concluded in writing by issuing insurance policy by an insurer to an insurant (insured person).

      Insurance policy shall be issued in accordance with the requirements of regulatory legal act of the authorized body and shall contain information as well as a unique number received from the database.

      The ground for compulsory liability insurance contract of vehicle owners is a statement of an insurant. Requirements to content of the application and list of copies of documents confirming the details mentioned in the application shall be established by the regulatory legal acts of the authorized body.

      6. Besides the conditions listed in Article 826 of the Civil Code of the Republic of Kazakhstan, the insurance policy shall contain the size of the maximum volume of the insurer's liability for one insured event and an indication to the type of contract.

      Requirements on execution of insurance policy on compulsory liability insurance of vehicle owners shall be established by the legislation of the Republic of Kazakhstan on insurance and insurance activities.

      6-1. Introduction of amendments and supplements to the insurance policy shall not be allowed.

      7. In case of loss of the insurance policy, an insurer shall issue a duplicate of the insurance policy on the basis of written request of an insurant (insured person) to him (her).

      After issuing a duplicate, lost insurance policy shall be considered invalid and the insurance payment shall not be made for it.

      Expenditures of an insurer for conducting the case upon execution of a duplicate of insurance policy in case of its loss shall be reimbursed by an insurant (insured person) in the amount of 0.1 monthly calculation index established in accordance with the Law of the Republic of Kazakhstan on republican budget, on a date of submitting the relevant application.

      8. If an insurer concluded compulsory liability insurance contract of vehicle owners in conditions aggravating the situation of an insurant (insured person) or the affected person as compared to those that provided by the Law, then an insurer shall bear responsibility before an insurant (insured person) and the affected person in conditions established by the Law upon occurrence of the insured event.

      9. Payment of insurance premium under compulsory liability insurance contract of vehicle owners shall be made ??by an individual in a lump sum.

      Note RCLI!
      aragraph 10 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after the date of its first official publication).

      10. Conclusion of compulsory liability insurance contract of vehicle owners in the places of their compulsory technical inspection and registration subdivisions of authorized body on traffic safety shall be carried out only with the organization making financial services in the specified places, representing agency services of insurance companies.

      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement se Article 2); dated 24.01.2011 No. 399-IV (shall be enforced from 01.01.2012); from 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication); from 09.04.2016 No. 499-V (shall be enforced after ten calendar days after day of its first official publication).

Article 11. Standard contract

      1. According to the standard contract, civil liability of one or several vehicle owners may be insured.

      2. Standard contract shall be concluded by issuing a separate insurance policy for each unit of operated vehicle by an insurer to an insurant (insured person).

      3. Insurance policy shall contain details about an insurant (insured persons), and operated vehicles.

      4. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

      5. According to the standard contract the civil liability of an insurant (insured person) created in a result of infliction of harm to third parties by the insurant himself (herself) or in case as follows shall be considered as insured:

      1) operation of the vehicle by a person having the right to its operation in the presence of an insurant (insured person);

      2) operation of the vehicle by a person on the basis of employment or other contract with an insurant (insured person) drawn up in writing;

      3) operation of the vehicle by a person that unlawfully possessed the vehicle, if the responsibility for inflicted harm is imposed on an insurant (insured person).

      6. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).
      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 12. Package contract

      1. Civil liability of an individual being an owner of two or several units of vehicles may be insured according to the package contract.

      2. Package contract shall be concluded by issuing insurance policy for all operating vehicles by an insurer to an insurant (insured person).

      3. Insurance policy shall contain details about an insurant (insured person) – an individual and the vehicles operated by him (her).

      4. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

      5. Civil liability of an insurer (insured person) arising as a result of inflicting the harm to third parties by the insurant (insured person) himself (herself) or in the case as follows shall be considered as insured according to the package contract:

      1) operation of the vehicle by a person having the right to its operation in the presence of an insurant (insured person);

      2) operation of the vehicle by a person that unlawfully possessed the vehicle, if the responsibility for inflicted harm is imposed on an insurant (insured person).

      6. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).
      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 13. Force of compulsory liability insurance contract of the vehicle owners

      1. Compulsory liability insurance contract of vehicle owners shall be valid in respect of all the persons recognized as affected persons in accordance with the Law, including those being in the vehicle of an insurant (insured person) being guilty in causing harm, except for:

      1) a person operating this vehicle by virtue of fulfilling official or employment duties with an insurant (insured person), as well as on the basis of employment or other contract with the vehicle owner or in the presence of the insurant (insured person) on the basis of his (her) will without written form of transaction;

      2) passengers, if an insurer (insured person) is a carrier to whom the requirements of the legislative act of the Republic of Kazakhstan regulating compulsory insurance of civil liability of the carrier before passengers is applied;

      Note RCLI!
      Amendments in subparagraph 3) shall be enforced from 09.08.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV).

      3) employees of an insurant (insured person) if the insurant (insured person) as an employee is imposed by the obligation to insure the employee from accidents upon fulfilling employment (official) duties by him (her).

      2. Compulsory liability insurance contract of vehicle owners shall be enforced and become compulsory for the parties from the date established by the compulsory liability insurance contract of vehicle owners.

      Note RCLI!
      aragraph 3 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).

      3. Compulsory liability insurance contract of vehicle owners shall be concluded for a period of twelve months from the date of its enforcement.

      Compulsory liability insurance contract of vehicle owners shall be concluded from the date of creation of the individual’s or legal entity’s right to ownership of the vehicle, but not later than ten business days from the date of state registration (re-registration) of this vehicle in subdivisions of authorized body on traffic safety.

      4. Conclusion of compulsory liability insurance contract of vehicle owners shall be allowed for the term being otherwise than it is provided by paragraph 3 of the Article:

      1) upon seasonal operation of the vehicle, but not less than six months;

      2) with creditors (insurants) of forcibly liquidated insurance organization-participant of the guarantee system of insurance payments;

      3) in the cases provided by subparagraph 3) of paragraph 1 of Article 5 of the Law for the term preceding the state registration of the vehicle, but not less than five calendar days;

      4) in case of temporary entry of the vehicle into the territory of the Republic of Kazakhstan for the entire period of temporary entry, but not less than five calendar days.

      5. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

      6. Force of compulsory liability insurance contract of vehicle owners shall be limited by the territory of the Republic of Kazakhstan, unless otherwise provided by international treaty concluded by the Republic of Kazakhstan.

      Footnote. Article 13 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); From 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication).

Article 14. Termination of compulsory liability insurance contract of vehicle owners

      1. Compulsory liability insurance contract of vehicle owners shall be considered as terminated in the following cases:

      1) expiration of force of contract;

      2) early termination of contract;

      3) occurrence of the first insured event, laying an insurer under obligation to make insurance payment.

      2. Upon making insurance payment, the insurance policy shall be subject to withdrawal by an insurer. By this, the vehicle owner (if it is not destroyed) shall be obliged to conclude compulsory liability insurance contract of vehicle owners for a new period of his (her) choice with any insurer having the right for carrying out this type (class) of compulsory insurance. <*>

      Footnote. Article 14 as amended by the Law of the Republic of Kazakhstan dated 20 February, 2006 No. 128 (order of enforcement see Article 2.

Article 15. Early termination of compulsory liability insurance contract of vehicle owners

      1. Compulsory liability insurance contract of vehicle owners shall be early terminated in the cases established by the Civil Code of the Republic of Kazakhstan.

      2. For early termination of compulsory liability insurance contract of vehicle owners an insurant (in case of death of the insurant – his (her) successor (successors) shall submit a written application to the insurer.

      3. In case of early termination of compulsory liability insurance of vehicle owners and conclusion of new compulsory liability insurance contract of vehicle owners with the same insurer, an insurer shall have a right to refund of part of insurance premium, which is calculated by the following formula:

      PIP = IP * n / N, wherein:

      PIP – insurance premium amount retained by an insurer (in tenge);

      SP - insurance premium amount being paid under compulsory liability insurance contract of the vehicle owners (in tenge);

      n - a period elapsed from the date of enforcement of compulsory liability insurance contract of vehicle owners until the date of its early termination (in days), including the date of application;

      N – a term of conclusion of compulsory liability insurance contract of vehicle owners (in days).

      4. Upon non-compliance with condition being provided by paragraph 3 of this Article, an insurer shall have the right to refund of part of insurance premium in case of early termination of compulsory liability insurance contract of vehicle owners in the following amounts:

subparagraph

Term is passed from the moment of enforcement of the treaty of obligated compulsory liability of motor vehicle owners until the moment of its early termination

Amount of insured premium is detained by the insurer (in percent from annual insurance premium)

1

2

3

1

until 15 days inclusively

15

2

from 16 days until 1 month inclusively

20

3

from 1 until 2 months inclusively

30

4

from 2 until 3 months inclusively

40

5

from 3 until 4 months inclusively

50

6

from 4 until 5 months inclusively

60

7

from 5 until 6 months inclusively

70

8

from 6 until 7 months inclusively

75

9

from 7 until 8 months inclusively

80

10

from 8 until 9 months inclusively

85

11

from 9 until 10 months inclusively

90

12

from 10 until 11 months inclusively

95

13

more than 11 months

100

      Footnote. Article 15 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 16. Rights and obligations of an insurant

      1. Insurant shall have the rights to:

      1) require the explanations of conditions of compulsory liability insurance of the vehicle owners, his (her) own rights and obligations under compulsory liability insurance contract of the vehicle owners from an insurer;

      1-1) request information on existence of details about compulsory liability insurance of vehicle owners, concluded by an insurant with an insurer, the obligations of which includes introduction of details on it to the database from organization on creation and maintenance of the common database on insurance (hereinafter – database). This right shall also apply to the insured person;

      2) obtain a duplicate of insurance policy in case of its loss;

      3) use the services of independent expert for assessment of the size of damage caused to the property of the affected person;

      4) familiarize with the results of assessment of the size of caused damage made by an independent expert and calculations of the insurance payments amount carried out by an insurer;

      5) early terminate the compulsory liability insurance contract of vehicle owners;

      5-1) apply to insurance ombudsman to resolve issues arising from the compulsory liability insurance contract of vehicle owners;

      6) challenge decision of an insurer on refusal from carrying out the insurance payment or reduction of its size in the manner established by the legislation of the Republic of Kazakhstan;

      7) receive an insurance payment in the cases provided by the Law.

      Compulsory liability insurance contract of vehicle owners may provide the other rights of an insurant that are not inconsistent with the civil legislation of the Republic of Kazakhstan.

      2. Insurant shall be obliged to:

      1) provide details about himself (herself) to an insurer, each of insured persons, included to the insurance policy, vehicle (vehicles), double insurance, seasonal operation of vehicle temporary entry to the territory of the Republic of Kazakhstan and right to reduction of the insurance premium amount in the manner provided by the Law being necessary for introduction in application and copies of necessary documents confirming the details mentioned in the application upon conclusion of compulsory liability insurance contract of vehicle owners;

      2) pay insurance premiums in amount, manner and terms established by the compulsory liability insurance contract of vehicle owners;

      3) immediately, but not later than three business days, as he (she) became aware of occurrence of the traffic accident and insurance event, to notify an insurer by available method (orally, in writing), with whom compulsory liability insurance contract of vehicle owners is concluded. Notification in oral form shall be confirmed in writing in the following (within seventy two hours). In cases when an insurant and insured person is not one and the same person, the obligation on informing an insurer about occurrence of insurance event shall be imposed on the insured person. If an insurant (insured person) did not have a possibility to perform all specified actions by the reasonable grounds, he (she) shall confirm this in written form;

      Note RCLI!
      Subparagraph 4) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).

      4) upon commission of transport accident to inform affected persons and servants of authorized body on traffic safety the name and the location of the insurer with whom the compulsory liability insurance contract of vehicle owners is concluded;

      5) upon commission of traffic accident to take reasonable and available measures under the circumstances to prevent or reduce potential losses, including the measures to save property and provide assistance to affected persons;

      Note RCLI!
      Subparagraph 5) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 17.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).

      6) inform the relevant bodies and organizations, on the basis of their competence (subdivisions of authorized body on traffic safety, bodies of the state fire-fighting service, ambulance service, emergency services), about the traffic accident and affected persons;

      6-1) upon commission of the traffic accident immediately, but not later than two hours after receipt of the written direction of the authorized official to undergo a medical examination for establishment of the fact of psychoactive substance and intoxication in accordance with the requirements of the legislation of the Republic of Kazakhstan;

      7) immediately, but not later than two business days from the date of the informing, to notify the affected person by an insurer on occurrence of insured event;

      8) ensure transfer of the right of contribution to a person being responsible for occurrence of the insured event to an insurer.

      Compulsory liability insurance contract of vehicle owners may provide the other obligations of an insurant that are not inconsistent with the Laws of the Republic of Kazakhstan.

      3. Obligations of an insurant mentioned in subparagraphs 4), 5) and 6) of paragraph 2 of this Article shall be imposed on a person directly operated the vehicle at the moment of the traffic accident.

      Footnote. Article 16 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 26.05.2008 No. 34-IV (order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); dated 15.07.2010 No. 338-IV (shall be enforced from 01.01.2011); from 17.04.2014 No. 195-V (shall be enforced after six months after day of its first official publication).

Article 17. Rights and obligation of insurer

      1. Insurer shall have the right to:

      1) require provision of details being necessary for introduction into compulsory liability insurance contract of vehicle owners from an insurant upon conclusion of compulsory liability insurance contract of vehicle owners, except for the details provided by the Civil Code of the Republic of Kazakhstan in accordance with the Law, as well as information on preceding compulsory liability insurance contracts of vehicle owners, insurance events and insurance payments;

      2) request documents confirming the fact of occurrence of insured event and size of harm inflicted to the affected persons from the relevant state bodies and organizations proceeding from their competence;

      3) establish the reasons and other circumstances of the traffic accident;

      4) (is excluded – dated 7 May, 2007 No. 244);

      5) submit the right of contribution to a person being responsible for causing the harm in cases provided by Article 28 of the Law;

      6) refuse implementation of insurance payment as well as compensation of caused harm in the order provided by article 26-1 of this Law, in whole or in part on the bases provided by article 29 of this Law.

      Compulsory liability insurance contract of vehicle owners may provide the other rights of an insurer that are not inconsistent with the civil legislation of the Republic of Kazakhstan.

      2. Insurer shall be obliged to:

      1) familiarize an insurant (insured person) with conditions of compulsory liability insurance of vehicle owners, to clarify his (her) rights and obligations arising from compulsory liability insurance contract of vehicle owners;

      2) issue the insurance policy to an insurant (insured person) upon conclusion of compulsory liability insurance contract of vehicle owners;

      3) is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2);

      4) provide allowance on a payment of insurance premium to the persons mentioned in a part one of paragraph 1 of Article 20 of the Law;

      5) register the traffic accident immediately upon receipt of notification about it;

      5-1) present details in written on existence of the insurance policy (last name, first name, if available – patronymic of an insurant, state registration number of vehicle, number and date of issuance) of an insurant that is a guilty person of the traffic accident, in existence of a document confirming the insured event within one business day from the date of receiving written application of the affected person or a person having the right to compensation for harm according to the Laws of the Republic of Kazakhstan due to death of the affected person;

      6) organize assessment of an independent expert of damaged (destroyed) property upon application of an insurant (insured person) or affected person (beneficiary) or their representatives for conduct of assessment and represent the report on assessment for familiarization of the beneficiary within terms and in the manner established by the Law;

      6-1) notify immediately but no later than three business days an insurant on deficient documents in case of non-presentation of the documents provided by paragraph 2 of Article 25 of the Law by him (her);

      7) make an insurance payment in the amount, manner and terms established by the Law upon occurrence of the insured event;

      7-1) when addressing with the written requirement about compensation of the caused harm in the order provided by article 26-1 of this Law to make compensation of the caused harm in the amount , an order and the terms established by this law;

      8) reimburse for expenses to an insurant (insured person) incurred by him (her) for the purpose of prevention or reduction of losses upon insured event;

      9) ensure the secrecy of insurance.

      Compulsory liability insurance contract of vehicle owners may provide the other obligations of an insurer that are not inconsistent with the Laws of the Republic of Kazakhstan.

      Footnote. Article 17 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 18. Rights of the affected person

      1. Affected person shall have the right to:

      1) inform an insurer on the traffic accident, in the result of which he (she) is inflicted by harm by an insurant (insured person);

      2) carry out collection of documents instead of an insurant (insured person)being necessary for making insurance payment, and represent them to their insurer;

      3) use the services of an independent expert for assessment of size of harm inflicted to property;

      3-1) use the services of any health care provider;

      4) familiarize with the results of assessment of the size of harm made by an independent expert and the calculations of the insurance payments amount made by an insurer;

      4-1) apply to an insurer of a person in written being guilty in infliction of harm to life, health and (or) property of the affected person, on confirmation of details about the existence of the insurance policy (last name, first name, if available – patronymic of an insurant, state registration number of vehicle, number and date of issuance) of this person in the manner provided by subparagraph 5-1) of Article 17 of the Law;

      4-2) apply to the organization in written on formation and maintenance of a database on representing details on existence or absence of insurance policy (last name, first name, if available – patronymic of an insurant, state registration number of vehicle, number and date of issuance) of a person being guilty in infliction of harm to life, health and (or) property of the affected person, in existence of a document confirming the insured event;

      5) receive insurance payment as well as compensation of the caused harm in the order provided by article 26-1 of this Law;

      5-1) apply to insurance ombudsman to resolve the issues arising from the compulsory liability insurance contract of vehicle owners;

      6) challenge decision of an insurer on refusal in making insurance payment or reduction of its amount in the manner established by the legislation of the Republic of Kazakhstan;

      7) submit requirement on compensation for inflicted harm to the vehicle owner in amount exceeding the sum of inflicted harm over received insurance payments.

      2. In cases provided by the Law, the rights of the affected person established by paragraph 1 of this Article shall be transferred to other persons acting as beneficiaries.

      Footnote. Article 18 as amended by the Laws of the Republic of Kazakhstan dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 18-1. Rules of accreditation of the independent expert

      Footnote. Article 18-1 is excluded by the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Chapter 4. Insurance premiums

Article 19. Insurance premium amount

      1. For the calculation of annual insurance premium being subject to payment upon conclusion of compulsory liability insurance contract of vehicle owners, the basic insurance premium to which the rates established by paragraphs 3-10 of this Article shall apply depending on the place of registration of vehicle, type of transport vehicle, age and driving experience of an insurant (insured person), term of operation of vehicle and existence or absence of insured events due to the fault of persons the civil liability of which is insured (“bonus-malus” system) shall be used.

      Decrease or increase of insurance premium amount on other grounds not provided by the Law shall not be allowed.

      2. Basic insurance premium shall be established in amount of 1,9 of monthly calculation index.

      3. Rates in the territory of registration of the vehicle shall be established as follows:

No.

Name of oblast, city of republican significance, the capital

Amount of the rate in the territory of the registration of the vehicle (for the capital, city of republican and oblast significance)

1

2

3

1.

Almaty oblast

1,78

2.

South Kazakhstan oblast

1,01

3

East Kazakhstan oblast

1,96

4.

Kostanay oblasts

1,95

5.

Karaganda oblast

1,39

6.

North Kazakhstan oblast

1,33

7.

Akmola oblast

1,32

8.

Pavlodar oblast

1,63

9.

Zhambyl oblast

1,00

10.

Aktobe oblast

1,35

11.

West Kazakhstan oblast

1,17

12.

Kyzylorda oblast

1,09

13.

Atyrau oblast

2,69

14.

Mangistau oblast

1,15

15.

Almaty

2,96

16.

Astana

2,2

      4. For other cities and inhabited localities in the oblasts mentioned in paragraph 3 of this Article, a correction factor in amount of 0.8 shall be used additionally for calculation of the annual insurance premium.

      5. In case of temporary entrance of the vehicle on the territory of the Republic of Kazakhstan the coefficient across the territory of registration in the amount of 4,4 shall be applied.

      Rates in the territory of registration of the vehicle shall not apply to the cases provided by subparagraph 3) of paragraph 1 of Article 5 of the Law.

      6. Rates by a type of the vehicle shall be established in the following amounts:

No.

Type of vehicle

Classification in accordance with the regulatory legal act of the Ministry of internal affairs of the Republic of Kazakhstan

Amount of rate on a type of the vehicle

1

2

3

4

1.

Motor cars

“B” - cars, the gross weight of which does not exceed 3500 kg and the number of seats of which does not exceed 8 besides a seat of a driver

2,09

2.

Buses up to 16 passenger seats inclusively

"D" - cars, intended for the carriage of passengers and having more than 8 seats besides a seat of a driver

3,26

3.

Buses over 16 passenger seats

"D" - cars, intended for the carriage of passengers and having more than 8 seats besides a seat of a driver

3,45

4.

Freighter

"C" - trucks, the gross weight of which exceeds 3500 kg

3,98

5.

Trolleybuses, trams

Trolleybuses, trams

2,33

6.

Motorcycle transport

"A" - Motorcycles, scooters and other motorcycle transport vehicles

1,00

7.

Trailers (semi-trailers)

"E" - combinations of vehicles with tractors, related to the categories of the vehicles "B", "C" or "D"

1,00


      7. Rates depending on the age and driving experience shall be established for individuals in the following amounts:

No.

Age and driving experience

Amount of rate depending on the age and driving experience

1

2

3

1.

Less than 25 years/driving experience less than 2 years

1,10

2.

Less than 25 years/driving experience more than 2 years

1,05

3.

25 years and older/driving experience less than 2 years

1,05

4.

25 years and older/driving experience more than 2 years

1,00

      8. For legal entities, the rate provided by paragraph 7 of this Article shall be equal to 1,2.

      9. Rates depending on the term of operating the vehicle shall be established in the following amounts:

No.

Term of operating the vehicle

Amount of rate depending on the term of operating the vehicle

1

2

3

1.

Up to 7 years inclusively

1,00

2.

More than 7 years

1,10

      10. Rates by the "bonus-malus" system with assignment of the relevant class at the end of the insurance period shall be established as follows:

Class at the beginning of the insurance

Amount of rate

Class at the end of the insurance period in consideration of existence of the insured events due to the fault of an insurant (insured person)

0

insured event

1

insured event

2

insured event

3

insured event

4 and more insured events

1

2

3

4

5

6

7

Class М

2,45

0

М

М

М

М

Class 0

2,30

1

М

М

М

М

Class 1

1,55

2

М

М

М

М

Class 2

1,40

3

1

М

М

М

Class 3

1,00

4

1

М

М

М

Class 4

0,95

5

2

1

М

М

Class 5

0,90

6

3

1

М

М

Class 6

0,85

7

4

2

М

М

Class 7

0,80

8

4

2

М

М

Class 8

0,75

9

5

2

М

М

Class 9

0,70

10

5

2

1

М

Class 10

0,65

11

6

3

1

М

Class 11

0,60

12

6

3

1

М

Class 12

0,55

13

6

3

1

М

Class 13

0,50

13

7

3

1

М

      Calculation of the class by "bonus-malus" system appropriated to an insurant (insured person) shall be performed on an annual basis in the manner provided by the regulatory legal act of the authorized body.

      11. The ground for the application of the rates by "bonus-malus" system by an insurer is an insurance report, containing information about the class assigned to an insurant (insured person) received by the insurer from database.

      In case of the absence of information in database about an insurant (insured person), upon conclusion of compulsory insurance contract of vehicle owners the insurer shall apply reduction factor for a new term according to the table provided in paragraph 10 of this Article, upon presentation of the original of the previous compulsory liability insurance contract of vehicle owners by an insurant.

      No later than three business days from the date of conclusion of compulsory liability insurance contract, an insurer shall be obliged to notify the organization carrying out the formation and maintenance of the database about this, and the authorized body.

      12. Upon conclusion of compulsory liability insurance contract of vehicle owners, the class 3 shall be assigned for the first time to an insurant.

      13. Rates provided by paragraph 10 of this Article shall not apply to individuals whose civil liability occurred in the cases provided by paragraphs 5 of Articles 11 and 12 of the Law, and legal entities.

      14. Upon conclusion of compulsory liability insurance contract of vehicle owners for a period of less than twelve months, except for cases of temporary entrance on the territory of the Republic of Kazakhstan, the amounts of insurance premiums on the vehicle unit shall be calculated using the following formula:

      In case of temporary entrance on the territory of the Republic of Kazakhstan the amount of an insurance premium on unit of the vehicleshall be calculated by the following formula:

      JV = JF*C, where:

      JV – the size of an insurance premium under the compulsory liability insurance contract of vehicle owners concleded for the period of less than twelve months (in tenge), in case of temporary entrance on the territory of the Republic of Kazakhstan;

      C – the correction coefficient depending on stay term in the territory of the Republic of Kazakhstan specified in paragraph 14-1 of this article.

      14-1. Upon conclusion of compulsory liability insurance contract of vehicle owners for temporary entrance on the territory of the Republic of Kazakhstan the following coefficients shall be established:

Insurance term at implementation of compulsory insurance civil liability of owners of the vehicles registered in the foreign states and temporarily used in the territory of the Republic of Kazakhstan

coefficient

1

up to 15 days (inclusive)

0,2

2

from 16 days to month

0,3

3

two months

0,4

4

three months

0,5

5

four months

0,6

6

five months

0,65

7

six months

0,7

8

seven months

0,8

9

eight months

0,9

10

nine months

0,95

11

ten months and more

1

      15. Under the package contract, the insurance premium shall be paid for one unit of the vehicle, by this the insurance premium amount shall be determined as equal to the greatest value of the insurance premium amounts established for the vehicles mentioned in the insurance policy.

      16. According to the standard contract, insurance premium shall be calculated for each insured person and be subject to payment by an insurant in amount being equal to the greatest value of the insurance premium amounts calculated for each insured person.

      Footnote. Article 19 is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 20. Decrease of the insurance premiums amount

      1. Upon conclusion of the standard contract, vehicle owners – participants of the Great Patriotic War and persons equated to them, disabled persons of groups I and II, pensioners shall pay insurance premiums in the amount of fifty percent the insurance premium being subject to payment, calculated in accordance with Article 19 of the Law.

      If the vehicle is operated by other owners that do not refer to the categories of persons mentioned in the first part of this paragraph, the compulsory liability insurance of liability of vehicle owners shall be carried out without the provision of such benefit.

      2. (is excluded – dated 7 May, 2007 No. 244).
      3. (is excluded – dated 7 May, 2007 No. 244).
      Footnote. Article 20 as amended by the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244.

Article 20-1. Additional services provided by an insurer

      In existence of the agreement of an insurant, insurer shall have the right to provide additional paid services linked the provision of assistance in case of the traffic accident, including provision of the vehicle to an insurant (insured person) for a period of repair of the damaged vehicle, provision of services for collecting the documents required for making insurance payment, leaving to the place of traffic accident of a representative of the insurer (average commissioner) for rendering of assistance to the insurant.

      Footnote. The Law is supplemented by Article 20-1 is accordance with the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244.

Article 21. Order of payment of insurance premiums

      1. If the compulsory liability insurance contract of vehicle owners does not provide otherwise, the premium shall be paid by the lump sum payment by an insurant.

      2. Insurer shall have the right to provide payment of insurance premium by installment in the compulsory liability insurance of vehicle owners. By this, insurer shall be liable before an insurant within the term of the whole validity period of compulsory liability insurance contract of vehicle owners. Non-payment of the insurance premium by an insurant may not be the ground for an insurer for early termination of the compulsory liability insurance contract of vehicle owners.

      3. In case of untimely payment of next insurance contribution, the insurer shall be obliged to pay a penalty to an insurer in the manner and amount established by Article 353 of the Civil Code of the Republic of Kazakhstan.

Chapter 5. Determination of insured event, size of inflicted harm and insurance payment

Article 22. Definition of insured accident and the extent of the caused harm

      1. Insured accident shall be considered as the fact of the approach of civil liabilityof insured person for compensationof caused to the life, health and (or) property of the persons recognized as affected persons, as a result of operation of the vehicle by the insured person mentioned in the compulsory liability insurance contract of vehicle owners.

      2. Size of harm inflicted to life and health of the affected person shall be determined in accordance with this Law on the basis of documents issued by the relevant organizations.

      3. Assessment of the size of the harm inflicted to property shall be made by the insurer within ten business days on the basis of the statement for determination of the size of harm in the form established by the regulatory legal act of authorized body.

      Determination of the size of the harm inflicted to the vehicle shall be carried out by the insurer according to the regulatory legal act of authorized body.

      The beneficiary to whom property is caused harm have to keep this property in such state in what it was after transport accident, before giving to the insurer the statement for determination of the size of harm by him or the insurer (insured) as well as during ten business days from the date of this statement is ubmitted to give an opportunity to the insurer to examine the damaged property.

      4. The insurer shall carriy out insurance payment in the amount of harm, defined according to the regulatory legal act of National Bank of the Republic of Kazakhstan.

      5. If the injured person (beneficiary) is disagreewith result of the extent of harm determined by the insurer the injured person (beneficiary) has the right to dispute the extent of harm determined by the insurer in court.

      The insurer has no right to hold from the insurance payment which is due to the beneficiary, own expenses connected with determination of the extent of harm.

      The insurer has to submit any documents relating to consideration and settlement of dispute concerning a certain extent of the harm inflicted to property by the request of the insurer, injured person (beneficiary) within three business days from the date this request is receipted

      6. Intentional creation of insured accident and also other fraudulent actions directed to illegal receiving insurance payment shall attract responsibility according to the Criminal Code of Kazakhstan.

      Footnote. Article 22 in edition of the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 22-1. Actions of persons upon occurrence of the traffic accident in the absence of affected persons to whom the harm to life, health is inflicted

      In the absence of the affected persons to whom the harm to life, health is inflicted upon commission of the traffic accident, its participants shall notify the insurers on the occurred traffic accident when possible.

      Insurers have the right to send their representatives to the place of traffic accident.

      By the mutual agreement in assessing the circumstances of occurred accident and size of harm inflicted to the property, the estimated size of which shall not exceed fifty monthly calculation indices, participants of the traffic accident shall have the right to draw up a scheme of the accident and after signing come to the nearest post or subdivision of the internal affairs bodies for its registration.

      Procedure for drawing up and standard forms of a scheme of traffic accident shall be established by the regulatory legal acts of the Ministry of Internal Affairs of the Republic of Kazakhstan in coordination with the authorized body.

      Footnote. The Law is supplemented by Article 22-1 in accordance with the Law of the Republic of Kazakhstan dated 07.05.2007 No. 244; as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 23. Special conditions of determining size of inflicted harm

      (is excluded by the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244).

Article 24. Risk limits

      Footnote. Article 24 heading in edition of the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

      1. Maximal volume of the insurer's liability for one insured event (the insured amount) shall be (in monthly calculation indices):

      1) for the harm inflicted to life or health of each affected person and resulted:

      death - 1000;

      establishment of disability:

      Group I - 800,

      Group II - 600

      Group III - 500;

      "disabled child " - 500;

      mutilation, injury or other damage of health without disability establishment – in the amount of the actual expenses on out-patient and (or) hospitalization, but no more than 300;

      2) for harm inflicted to the property of one affected person - in amount of inflicted harm, but not more than 600;

      3) for harm inflicted to the property of two or more affected persons at the same time - in amount of inflicted harm, but no more than 600 to each affected person. By this the total amount of insurance payments to all the affected persons may not exceed 2000. In case of exceeding the size of harm over the limiting volume of the insurer's liability, insurance payment to each affected person shall be carried out in proportion to the degree of harm inflicted to his (her) property.

      2. Insurance payment for the harm inflicted to life and health of the affected person entailing death or establishment of disability shall be carried out in amount of limiting volume of the insurer's liability established by paragraph 1 of this Article.

      3. The monthly calculation index, established in accordance with the legislative act of the Republic of Kazakhstan on the date of making the insurance payment shall be used for calculating the size of the insurance payment.

      4. The expenses incurred by an insurant (insured person) in order to prevent or reduce losses shall be subject to compensation by an insurer, if such expenses were necessary or were made for carrying out of instructions of the insurer, even if the relevant measures turned to be unsuccessful.

      Such expenses shall be compensated in actual amounts, by this, the total amount of insurance payment and compensation shall not exceed insured amount, established by the compulsory liability insurance contract of vehicle owners. If expenses are occurred in a result of performing the instructions of an insurer, they shall be compensated in full amount regardless of insured amount.

      Specified expenses shall be compensated directly to a person that incurred them by an insurer.

      5. In case of insufficiency of the insured amount for the full recovery of inflicted harm, the insurant shall compensate the difference between the insured amount and actual size of harm.

      6. In case of death of an affected person, a person carrying out the burial of the affected person shall be compensated for expenses on burial in amount of one hundred monthly calculation indices by an insurer.

      Footnote, Article 24 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 25. General conditions of making insurance payment

      1. Requirement on insurance payment to an insurer shall be submitted by an insurant (insured person) or any other person being a beneficiary, in writing with specifying the place of residence, contact telephone numbers of the beneficiary, the bank details (if necessary), the procedure for receiving insurance payment - in cash or by transfer on a bank account accompanied by documents being necessary for making the insurance payment.

      2. Application on insurance payment shall be accompanied by the following documents:

      1) insurance policy (its duplicate) of a person whose civil liability is occurred due to infliction of harm to life, health and (or) property of the affected person, in case of his (her) absence, a copy of the insurance policy, or in existence of one of the details on the specified insurance policy (name of the insurer, number, date of issuance of the insurance policy) or about an insurant (last name, first name, if available - patronymic of an insurant, state registration number of the vehicle);

      2) a document confirming the fact of occurrence of the insured event and the amount of harm caused to affected person;

      3) copy of the certificate of health care organizations on the term of temporary disability of an affected person in case of the fact of inflicting the harm to life and health of the affected person or certificate of specialized agencies on establishment of disability of the affected person - in case of its establishment;

      4) notarized copy of death certificate of an affected person;

      4-1) document confirming the right of a beneficiary to compensation for harm (copy);

      4-2) the application for the organization of assessment in the case provided by paragraph 3 of article 22 of this Law;

      5) it is excluded by the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016);

      6) copy of identity certificate of a beneficiary (for an individual) or original power of attorney issued to a representative of a legal entity;

      7) documents confirming the expenses incurred by an insurant (insured person) in order to prevent or reduce losses upon occurrence of insurance event – upon availability;

      8) it is excluded by the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

      Claiming the other documents in addition by an insurer from an insurant (insured person) or an affected person shall not be allowed.

      3. Insurer that accepted the documents shall be obliged to draw up certificate in duplicate specifying the full list of documents submitted by an applicant and the date of their acceptance.

      One copy of the certificate shall be issued to the applicant; the second copy with a mark of the applicant about its receipt shall be left to an insurer.

      4. Beneficiary shall be the affected person (in case of his (her) death - a person having the right to compensation for harm due to death of the affected person according to the Laws of the Republic of Kazakhstan), as well as an insurant (insured person) or other person that compensated for inflicted harm to the affected person (to a person having the right to compensation for harm) within the volume of the insurer's liability established by the Law, and receiving the right to an insurance payment.

      Upon infliction of harm to property the property, the affected person shall be recognized as the owner of the property, and in case of his (her) death – persons having the right to compensation for harm.

      5. Upon the application of an affected person, drawn up in written form, or upon the notarized power of attorney, insurance payment may be made directly to a person that rendered (rendering) the services to him (her) on rehabilitation of health and (or) property.

      6. Insurance payment for harm inflicted to life and health of an affected person shall be carried out independently from the sums due and owing to him (her) (persons having the right to compensation for harm) under any other insurance contracts.

      7. Upon making insurance payment an insurer shall not have the right to require acceptance of the conditions from a beneficiary restricting his (her) right to claim to an insurer.

      8. Insurer shall have the right to the property or its remnants in case of making insurance payment by him (her) in amount of market price of the property on the date of occurrence of insured event.

      Footnote. Article 25 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); From 29.12.2014 No. 269-V (shall be enforced from 01.01.2015); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 26. Procedure for making insurance payment

      1. Insurance payment shall be made by an insurer within fifteen business days from the date of receipt of the documents provided by Article 25 of the Law.

      2. (is excluded – dated 7 May, 2007 No. 244)

      2-1. In case of inflicting harm to the property of several affected persons, the insurer shall be obliged to begin insurance payment within seven business days from the date of receipt of the documents of all the affected persons, but not later than 15 calendar days from the date of receiving the documents from the affected person, firstly submitted documents to the insurer, independently from the submission of the documents by other insured.

      3. If in the result of event that led to occurrence of insured event the health of an affected person is deteriorated (disability or a higher degree of disability shall be established) or it causes death, the insurer shall be obliged to make recalculation of the insurance payment amount in the manner and amount established by the Law on the basis of the application received from the affected person (beneficiary) and the relevant documents. By this, insurance payments amounts shall be taken in payment of the previously paid sums upon recalculation.

      4. Upon making untimely insurance payment, an insurer shall be obliged to pay a penalty to a beneficiary in the manner and amount established by Article 353 of the Civil Code of the Republic of Kazakhstan.

      Footnote. Article 26 as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 26-1. Direct settlement

      1. Upon occurrence of insured event an affected person or a person having the right to compensation for harm according to the Laws of the Republic of Kazakhstan due to death of the affected person, for obtaining insurance payment have the right to apply to an insurer with whom the affected person concluded compulsory liability insurance contract of vehicle owners, in condition of existence of the insurance policy of a person due to the fault of which the insured event is occurred.

      Affected person that is not the owner of property to which harm is inflicted shall apply to an insurer of a person, due to the fault of which the insured event is occurred, in the manner provided by this Law.

      2. Compensation of the caused harm shall be made by the insurer within seven business days from the date of obtaining the documents provided by subparagraphs 1), 2), 3), 4), 4-1) and 6) of paragraph 2 of article 25 of this Law.

      Compensation to harm, caused to life, health and (or) property of the victim, carried out by the insurer within direct settlement, shall not be the obligations for him under the compulsory liability insurance contract of civil responsibility of vehicle owners concluded with the affected person and insurance payment.

      3. The insurance company of the person, due to the fault of which the insured event is occurred shall compensate actually paid sum to the insurer who settled insured accident.

      Footnote. The law is supplemented with article 26-1 according to the Law of the Republic of Kazakhstan from 07.05.2007 No. 244; in edition of the Law of the Republic of Kazakhstan from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Article 27. Insurance payment upon inflicting harm by several persons

      Upon infliction of harm to a person by several vehicles owners of which have compulsory liability insurance contracts of vehicle owners, a beneficiary shall have the right to receive an insurance payment separately for each of them. Each insurer shall make insurance payment within the volume of liability established by the Law, and in proportion to the size of the insurer's responsibility. By this, the total amount of insurance payment made by all insurers shall not exceed the amount of actual harm inflicted to an affected person, and limiting volume of liability provided for each insurer.

Article 28. Right of contribution to a person inflicting the harm

      1. Insurer that made insurance payment shall have the right of contribution to an insurant (insured person) within the amount paid in the cases if:

      1) civil liability of an insurant (insured person) is occurred as a result of his (her) intentional actions oriented to occurrence of the insured event or contributing to its occurrence, with the exception of actions committed in a state of necessary defense and emergency;

      2) civil liability of an insurant (insured person) is occurred due to operation of the vehicle by him (her) in a state of alcoholic, narcotic or toxic intoxication;

      3) a person operating the vehicle at the time of commission of the traffic accident didn’t have the right to operate it;

      4) in the course of judicial proceeding it was established that the insured event is occurred due to technical malfunctions of the vehicle on which an insurant (insured person) knew or should have known;

      5) the vehicle is used for the purposes other than its inherent technical purpose;

      6) an insurant (insured person) intentionally did not take measures for reducing the losses from the insured event;

      7) a person operating the vehicle escaped the place of the traffic accident;

      8) a person operating the vehicle and directed for examination to establish the fact of consumption of psychoactive substance and intoxication didn’t come for such examination without reasonable excuses.

      2. If in the cases listed in paragraph 1 of this Article, a person being guilty in inflicted harm is a person operating the vehicle by virtue of the employment relationship with its owner or in the presence of its owner without execution of written form of transaction, the insurer shall have the right of contribution to owner of the vehicle.

      3. The right of contribution shall be transferred to an insurer that made insurance payment within the sum paid by him (her) that an insurant (insured person) has against a person being responsible for the losses compensated by the insurer as a result of insurance. By this, if it is established that the insured event is occurred due to road conditions caused by poor maintenance of roads and structures on them, the right to claim shall be transferred to an insurer that made the insurance payment that the vehicle owner has to a person being is guilty in creation of such conditions.

      Footnote. Article 28 as amended by the Laws of the Republic of Kazakhstan dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 29. Grounds for release of an insurer from making of insurance payment

      1. Insurer shall have the right to refuse in insurance payment in full or in part, if the insured event is occurred due to:

      1) intentional actions of a beneficiary oriented to occurrence of the insured event or contributing to its occurrence, with the exception of actions committed in a state of necessary defense and emergency;

      Note RCLI!
      Subparagraph 2) is provided to be in the wording of the Laws of the Republic of Kazakhstan dated 03.07.2014 No. 227-V (shall be enforced from 01.01.2015).

      2) the actions of the beneficiary, as intentional crime or administrative infractions being in a causal connection with the insured event in the manner established by the legislative acts of the Republic of Kazakhstan.

      2. The ground for refusal of an insurer from making insurance payment may be also as follows:

      1) obtaining the relevant compensation for loss from a person being guilty in inflicting the harm by a beneficiary;

      2) is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2);

      3) use of the vehicle in competitions, tests or during driving instruction in specially designated areas by an insurant (insured person);

      4) inflicting the harm upon loading or unloading of the vehicle;

      5) inflicting the harm to the property of an affected person in the form of money, securities, gold, silverware, jewelry, garnish, works of art and other valuables;

      6) violation of requirements of a part of the three of paragraph 3 of article 22 of this Law by the ffected person.

      3. Within seven business days from the date of receipt of the application and all documents provided by paragraph 2 of Article 25 of the Law, in existence of the grounds for refusal in making insurance payment, the insurer shall send the relevant decision on full or partial refusal in insurance payment in writing with a substantiated explanation of the reasons for refusal.

      4. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

      5. Insurer shall be released from making insurance payment, if the insured event is occurred due to:

      1) the impact of a nuclear explosion, radiation or radioactive contamination;

      2) military actions;

      3) civil war, civil unrest of any kind, riots or strikes.

      5-1. Insurance payment shall not be made for the damaged vehicle, mentioned in the insurance policy.

      6. Insurer may not refuse in insurance payment based on the grounds that are not provided by this Article.

      Footnote. Article 29, as amended by the Laws of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2); dated 07.05.2007 No. 244; dated 30.12.2009 No. 234-IV (order of enforcement see Article 2); from 03.07.2014 No. 227-V (shall be enforced from 01.01.2015); from 24.11.2015 No. 422-V (shall be enforced from 01.01.2016).

Chapter 6. Final provisions

Article 30. Procedure for settlement of disputes

      Disputes arising from the compulsory liability insurance contract of vehicle owners shall be considered in the manner established by the legislation of the Republic of Kazakhstan.

Article 30-1 Insurance ombudsman, his (her) status and election

      1. Insurance ombudsman shall be an individual being independent in his (her) activity carrying out regulation of the relationships:

      1) between insurers arising on the issues of compulsory liability insurance of vehicle owners;

      2) between insurants (beneficiary) and insurers arising from compulsory liability insurance contracts of vehicle owners.

      2. Election of the insurance ombudsman shall be carried out by a board of representatives.

      The board of representatives shall be created by one representative from:

      1) each insurer;

      2) the authorized body.

      2-1. Competence of the board of representatives shall:

      1) approve the structure and staff (office) of insurance ombudsman;

      2) procedure for financing the activity of insurance ombudsman;

      3) other matters linked with carrying out the activity of the insurance ombudsman, in accordance with the Law.

      3. The authorized body shall recommend a candidate for election to the office of the insurance ombudsman. Insurance ombudsman shall be elected by a majority vote of the board of representatives. Each member of the board of representatives shall have only one vote. In case of equality of votes, the vote of a representative of the authorized body shall be casting vote.

      4. Insurance ombudsman shall be elected for a term of two years.

      The board of representatives shall have the right to terminate the powers of the insurance ombudsman in advance.

      Early termination of the powers of insurance ombudsman shall be terminated on the basis of written notification of the board of representatives at his (her) initiative.

      The powers of the insurance ombudsman shall be terminated from receipt of the mentioned notification by the board of representatives.

      Footnote. The Law is supplemented by Article 30-1 in accordance with the Law of the Republic of Kazakhstan dated 07.05.2007 No. 244; as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 30-2. Requirements to insurance ombudsman

      1. The following persons may not be recommended for election as insurance ombudsman:

      1) that doesn’t have higher education;

      2) having a work experience in the insurance industry less than three years;

      3) that have outstanding or unexpanged conviction in the manner established by the Law;

      4) being previously a leading employee of the insurance organization or of other legal entity during the period of not more than one year before adoption of decisions by the authorized body on temporary closing of the insurance organization, compulsory redemption of its shares, on the revocation of the license of an insurance organization, as well as on compulsory liquidation of an insurance company or other legal entity or their composition in bankruptcy in the manner established by the legislation of the Republic of Kazakhstan.

      2. Insurance ombudsman shall not have the right to hold any offices in insurance organizations and (or) be an affiliated person of the insurance organizations.

      3. The board of representatives shall have the right to re-elect an insurance ombudsman in case of establishment of non-compliance of the insurance ombudsman with requirements provided by this Article.

      Footnote. The Law is supplemented by Article 30-2 in accordance with the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244.

Article 30-3. Procedure for adoption of decisions by insurance ombudsman

      1. Decision shall be adopted solely by insurance ombudsman that shall be brought to the notice of the parties participating in the dispute in written.

      Upon adoption of decisions, the insurance ombudsman shall be governed by the legislation of the Republic of Kazakhstan.

      2. Decision of the insurance ombudsman shall be subject to execution by an insurer.

      3. In case of non-execution of the decision of the insurance ombudsman by an insurer within the period established by him (her), the insurance ombudsman shall be obliged to inform the authorized body immediately, but no later than three business days enclosing the documents confirming the fact of violation of the requirements of the Law and regulatory legal acts of the authorized body.

      4. Decision of the insurance ombudsman on relationship between insurers shall be compulsory.

      5. Decision of the insurance ombudsman on relationship between an insurant (beneficiary) and an insurer shall be compulsory for the insurer in case of its adoption by the insurant (beneficiary).

      In case of disagreement with the decision of the insurance ombudsman, the insurant (beneficiary) shall have the right to seek protection of his (her) rights in court in accordance with the legislation of the Republic of Kazakhstan. By this, the execution the decision of the insurance ombudsman for an insurant (beneficiary) shall not be compulsory.

      Footnote. The Law is supplemented by Article 30-3 in accordance with the Law of the Republic of Kazakhstan dated 07.05.2007 No. 244; as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 30-4. Activity of insurance ombudsman

      1. Activity of insurance ombudsman, including the procedure and terms of considering the applications for settlement and adoption of decisions shall be carried out on the basis of internal rules, coordinated with the authorized body and approved by the board of representatives.

      2. For the purpose of the proper performance of assigned functions, the activity of the insurance ombudsman shall be funded by the contributions of insurers. Insurance ombudsman shall have the right to creation of the structure and staff (office of the insurance ombudsman) in coordination with the board of representatives.

      3. Insurance ombudsman shall be obliged to maintain the confidentiality of information obtained in the course of settling the disputes, and shall divulge it to third parties.

      Insurance Ombudsman shall be responsible for the divulgence of details received in the course of carrying out his (her) functions, in accordance with the Laws of the Republic of Kazakhstan.

      4. Settlement of relationships in the cases provided by paragraph 1 of Article 30-1 of the Law shall be carried out by the ombudsman without compensation.

      5. In case of non-fulfillment of requirements by the insurance ombudsman provided by paragraphs 3 and 4 of this Article, the Board of Representatives shall terminate his (her) powers in advance.

      Footnote. The Law is supplemented by Article 30-4 in accordance with the Law of the Republic of Kazakhstan dated 07.05.2007. No. 244; is in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

Article 31. Responsibility for the breach of the legislation of the Republic of Kazakhstan on compulsory liability insurance of vehicle owners

      Persons being guilty in the breach of the legislation of the Republic of Kazakhstan on compulsory liability insurance of vehicle owners shall bear responsibility provided by the Laws of the Republic of Kazakhstan.

Article 32. International systems of compulsory insurance of civil liability of vehicle owners

      For the purpose of provision of compensation for harm to third parties inflicted by vehicle owners participated in the trans-border movement, as well as simplification of the movement regime of vehicle owners across the state borders, the participation of the Republic of Kazakhstan in the international systems of compulsory insurance of civil liability of vehicle owners shall be allowed in the manner provided by the legislation of the Republic of Kazakhstan.

      Footnote. The Law is supplemented by Article 32 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (order of enforcement see Article 2).

The President
of the Republic of Kazakhstan



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