On Compulsory Insurance of Civil Responsibility of Carrier before Passengers

The Law of the Republic of Kazakhstan dated 1 July, 2003 No. 444

Unofficial translation

      This Law regulates the relations arising in the scope of compulsory insurance of civil responsibility of carrier before passengers and establishes legal, financial and organizational grounds for its performance.

Chapter I. General provisions

Article 1. Basic definitions used in the Law

      The following basic definitions are used in the Law:
      1) beneficiary – a person that shall be a receiver of insurance payment in accordance with the Law;
      2) civil responsibility of carrier before passengers – an obligation of a carrier established by the civil legislation of the Republic of Kazakhstan to compensate a harm being inflicted to life, health and (or) property of passengers upon their transfer;
      3) an insured person – a person in respect of whom the insurance shall be carried out;
      4) a passenger – an individual that concluded the contract of carriage with a carrier in oral or written form;
      5) a carrier – an individual or legal entity having the railway, maritime, inner water, air, motor vehicle including city rail transport, on the right of ownership or on the other legal grounds and having the right on carrying out of carriage of passengers and their property for a valuable consideration or on hire in accordance with the legislation of the Republic of Kazakhstan;
      6) an affected person – a passenger, the life, health and (or) property of whom is inflicted by harm upon carrying out of carriage;
      7) an insurant – a person that concluded the contract of insurance with an insurer. The insurant shall be insured person at the same time unless otherwise is provided by the contract of insurance;
      8) insurance premium – a sum of money which the insurant shall pay to an insurer for incurrence of the obligations by the latter to pay insurance payment to the insurant (beneficiary) in amount being determined by the contract of insurance;
      9) insured amount – sum of money on which the object of insurance is insured and which shall represent the ceiling of the liability of the insurer upon the occurrence of the insured event;
      10) insurance payment – sum of money paid by an insurer to an insurant (beneficiary) within the insured amount upon occurrence of the insured event;
      11) insured event – the event in occurrence of which the contract of insurance shall provide making insurance payment;
      12) an insurer – a legal entity that obtained a license for the right of carrying out the 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 insurant or the other person upon occurrence of the insured event in favor of which the contract is concluded (beneficiary) within the sum (insured amount) determined by the contract;
      13) franchise – release of an insurer from compensation for the harm not exceeding the determined amount.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 132-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. The legislation of the Republic of Kazakhstan on compulsory insurance of the civil responsibility of carrier before passengers

      1. The legislation of the Republic of Kazakhstan on compulsory insurance of the civil responsibility of carrier before passengers shall be based on the Constitution of the Republic of Kazakhstan and consist of the Civil Code of the Republic of Kazakhstan, this Law and the 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 by the Law, the rules of international treaty shall be applied.

Article 3. Object of compulsory insurance of the civil responsibility of carrier before passengers

      Object of compulsory insurance of the civil responsibility of carrier before passengers (hereinafter – compulsory liability insurance of a carrier) shall be the property interest of a carrier linked with his (her) obligation being established by the civil legislation of the Republic of Kazakhstan to compensate the harm being inflicted to life, health and (or) property of passengers upon their carriage.

Article 4. Purpose and basic principles of compulsory liability insurance of a carrier

      1. Purpose of compulsory liability insurance of a carrier shall be ensuring of protection of the property interests of passengers upon their carriage by making the insurance payments.
      2. Basic principles of compulsory liability insurance of a carrier shall be:
      ensuring of the property interests of affected persons in the volume and in the manner established by the Law;
      carrying out of the carriage of passengers and their property by a carrier upon the condition of availability of his (her) insurance policy on compulsory liability insurance of the carrier;
      provision of performance of the obligations by parties under the contract of compulsory liability insurance of the carrier.

Article 5. Persons whose civil responsibility shall be subject to compulsory liability insurance of the carrier

      1. The civil responsibility of carriers-residents of the Republic of Kazakhstan carrying out the carriage of passengers and their property on the railway, maritime, internal water, air, automobile and city rail transport shall be subject to compulsory liability insurance of the carrier.
      2. The civil responsibility of a carrier shall be subject to insurance on each unit of the vehicle being used for carriage of passengers and their property.
      Conclusion of the contract of voluntary insurance of the civil responsibility of carrier before passengers shall not release the carrier from the obligation on conclusion of the contract of compulsory liability insurance of the carrier.
      Footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 132-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 2. Ensuring of the functioning of the compulsory liability insurance system of carrier

Article 6. State control and supervision in the scope of compulsory liability insurance of carrier

      1. State supervision of the activity of insurance organizations shall be carried out by the National Bank of the Republic of Kazakhstan (hereinafter – the authorized body) in accordance with the legislation of the Republic of Kazakhstan.
      2. State control of performance of the Law by the carrier in a part of conclusion of the contract of compulsory liability insurance of the carrier shall be imposed on:
      Note RCLI!
      Subparagraph 1) is provided to be in the wording of the Law of the Republic of Kazakhstan dated 07.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).
      1) subdivisions of the traffic police of the internal affairs bodies in respect of the operation of automobile and city rail transport;
      2) the authorized state body in the scope of the transport and communications in respect of the operation of the railway, maritime, internal water and air transport;
      3) custom bodies of the Republic of Kazakhstan in the automobile checkpoints through the State Border of the Republic of Kazakhstan coinciding with the custom border of the custom union.
      Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 31.01.2006 No. 125; 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 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 132-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 7. Inadmissibility of the carriage of passengers without the contract of compulsory liability insurance of the carrier

      1. Carriage of passengers by a carrier that didn’t conclude the contract of compulsory liability insurance of the carrier shall not be allowed.
      2. Carrier carrying out the international carriages shall be obliged to conclude the contract of liability insurance of the carrier in accordance with the international treaties ratified by the Republic of Kazakhstan.
      Note RCLI!
      Paragraph 3 is provided to be in the wording of the Law of the Republic of Kazakhstan dated 07.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).
      3. Person operating the vehicle, carrying out the carriage of passengers and their property shall be obliged to have the insurance policy on compulsory liability insurance of the carrier and represent it for a check by persons being authorized for it in accordance with legislative acts of the Republic of Kazakhstan.
      The subdivisions of traffic police of the internal affairs bodies and bodies of transport control upon checking the documents shall be obliged to require representation of the insurance policy on compulsory liability insurance of the carrier from a person operating the automobile vehicle carrying out the carriage of passengers and their property.
      4. Authorized state body in the scope of the transport and communications shall terminate the license validity of the carrier for the term up to six months for the violation of paragraph 1 of this Article.
      Footnote. Article 7 as amended by the Laws of the Republic of Kazakhstan dated 07.05.2007 No. 244; dated 27.04.2012 No. 15-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 8. Special aspects of carrying out the compulsory liability insurance of the carrier

      1. Before obtaining the license for the right of carrying out the compulsory insurance of the civil responsibility of the carrier before passengers, a legal entity being registered as the insurance organization shall be obliged to:
      1) conclude the contract of participation with the Guarantee Fund of insurance payments and become its shareholder in the manner determined by the Law of the Republic of Kazakhstan on creation and activity of the mentioned Fund;
      2) have branches and (or) insurance agents in the capital, city of the republican, oblast and district significance.
      2. Insurer carrying out the compulsory liability insurance of the carrier shall be obliged to publish its consolidated financial reporting on an annual basis and in case of absence of the branch organization (organizations – nonconsolidated financial reporting and the audit report in Kazakh and Russian languages no less than in two periodic printed publications distributed on all the territory of the Republic of Kazakhstan in the manner and terms established by the authorized body.
      3. The activity being oriented to limitation or elimination of the competition, provision or receiving of the unfounded advantages on conclusion of the contracts of compulsory liability insurance of the carrier by one insurers before the other, impairment of rights and legal interests of insurants shall not be allowed.
      4. The state enterprises as well as joint-stock companies, the controlling block of stock of which shall belong to the state and legal entities affiliated with them shall be obliged to acquire the insurance services on compulsory liability insurance of the carrier in accordance with the legislation of the Republic of Kazakhstan on the state purchases.
      5. Insurers shall have the right to participate in creation of the organization carrying out the formation and keeping of the informational data base on the insurance risks, insured events and insurance payments on the compulsory liability insurance of the carrier.
      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 11.07.2009 No. 185-IV (shall be enforced from 30.08.2009); dated 30.12.2009 No. 234-IV; dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Note RCLI!
      Article 9 is provided to be amended by the Law of the Republic of Kazakhstan dated 07.04.2014 No. 195-V (shall be enforced upon expiry of six months after date of its first official publication).

Article 9. Informational cooperation

      1. The subdivisions of the traffic police of the internal affairs bodies shall issue one copy of documents to participants of the traffic accident on the automobile passenger transport confirming the fact of occurrence of the insured event on a gratuitous basis as well as the copy of minute on the violation of the Rules of road traffic with scheme of accident.
      2. The subdivisions of the traffic police of the internal affairs bodies, prosecution bodies, courts, health care organizations, other state bodies and organizations prepossessing by information on the accident on a passenger transport and its consequences shall be obliged to provide the information to an insurer upon his (her) applying on a gratuitous basis.
      3. The subdivisions of the traffic police of the internal affairs bodies shall carry out the informing the relevant insurer on the current traffic accident upon impossibility of reporting on occurrence of the insured event by the carrier carrying out the automobile passenger carriages to the affected persons or their successors.
      Any other person shall also have the right to inform an insurer on the insured event.

Chapter 3. Contract of the compulsory liability insurance of the carrier

Article 10. Contract of the compulsory liability insurance of the carrier and procedure for its conclusion

      1. The compulsory liability insurance of the carrier shall be carried out on the basis of the contract concluded between an insurant and insurer in accordance with the Law.
      2. Making insurance payment on the obligations arising due tothe inflicting the harm to life, health and (or) property of the affected person with exception of compensation of the moral harm and lost profit of the affected person including the loss of the commodity value of property as well as compensation of the penalty due to violation of the terms of goods delivery or performance of works (rendering of services), other obligations under the contracts (agreements) by the affected person shall be provided by the contract of the compulsory liability insurance of the carrier.
      3. The contract of the compulsory liability insurance of the carrier shall be concluded only with an insurer having the license for the right of carrying out the activity on current type (class) of the compulsory insurance.
      Insurant shall be free in choosing the insurer.
      Insurer shall not have the right to refuse an insurant in conclusion of the contract of the compulsory liability insurance of the carrier.
      Under the contract of the compulsory liability insurance of the carrier, insurant shall pay insurance premium and the insurer shall make insurance payment to a beneficiary upon occurrence of the insured event in amount, manner and terms established by the Law.
      4. The contract of the compulsory liability insurance of the carrier shall be concluded in written form by issue of insurance policy by an insurer to an insurant (insured person).
      Application of an insurant shall be the ground for conclusion of the contract of the compulsory liability insurance of the carrier.
      Insurer shall bear responsibility for the incompleteness of conditions being subject to order in the contract of the compulsory liability insurance of the carrier. In case of creation of a dispute under the contract of the compulsory liability insurance of the carrier due to incompleteness of its particular conditions, the dispute shall be decided in favor of an insurant.
      5. Insurance policy shall contain the amount of the limit volume of the insurer’s responsibility on one insured event besides the conditions listed in Article 826 of the Civil Code of the Republic of Kazakhstan.
      The requirements on execution of insurance policy on the compulsory liability insurance of the carrier shall be established by the legislation of the Republic of Kazakhstan on insurance and insurance activity.
      6. In case of loss of insurance policy, the insurer shall be obliged to issue a duplicate of insurance policy to an insurant (insured person) on the basis of his (her) written application.
      Expenses on preparing the form of the insurance policy and execution of its duplicate shall be compensated by insurant (insured person), by this the general sum of the compensated expenses shall not exceed 0.1 monthly calculation index established in accordance with the legislative act of the Republic of Kazakhstan on the date of filing the application.
      7. If the insurer concluded the contract of the compulsory liability insurance of the carrier on conditions deteriorating position of an insurant (insured person) or the affected person in comparison with that which is provided by the Law, then upon occurrence of the insured event, the insurer shall incur obligations before the insurant (insured person) and the affected persons on conditions established by the Law.

Article 11. Validity of the contract of the compulsory liability insurance of the carrier

      1. Contract of the compulsory liability insurance of the carrier shall be valid in respect of all the persons being recognized as affected persons in accordance with the Law.
      2. The contract of the compulsory liability insurance of the carrier shall be enforced and become compulsory for the parties from the date of paying of insurance premium by an insurant, and upon its payment by installment – the first insurance contribution unless otherwise provided by conditions of the contract of compulsory liability insurance of the carrier.
      3. The contract of compulsory liability insurance of the carrier shall be concluded for the term of twelve months from the date of its enforcement with the exception of case provided by paragraph 4 of this Article.
      The contract of compulsory liability insurance of the carrier shall valid during all the term of insurance and shall not terminate by the first occurred insured event.
      4. In case if the right of a carrier to carry out the carriage of passengers and their property expires during the period consisting less than twelve months, the contract of compulsory liability insurance of the carrier shall be concluded only for current period.
      4-1. Conclusion of the contract of compulsory liability insurance of the carrier before passengers for the term less than twelve months with creditors (insurants) of compulsory liquidated insurance organization-participant of the guarantee system of insurance payments shall be allowed.
      5. Validity of the contract of compulsory liability insurance of the carrier shall be restricted by the territory of the Republic of Kazakhstan, unless otherwise provided by the international treaty concluded by the Republic of Kazakhstan.
      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 20.02.2006 No. 128 (order of enforcement see Article 2).

Article 12. Early termination of the contract of compulsory liability insurance of the carrier

      1. Contract of compulsory liability insurance of the carrier shall be terminated in advance in cases established by the Civil Code of the Republic of Kazakhstan.
      2. Insurant (in case of death of insurant – his (her) successor (successors) shall submit written application to an insurer for the early termination of the contract of compulsory liability insurance of the carrier.
      3. Upon the early termination of the contract of compulsory liability insurance of the carrier, the insurant shall have the right to return of part of insurance premium in the following amounts:

No.

Term passed from the date of enforcement of compulsory liability insurance of the carrier until its early termination

Amount of insurance premium retained by an insurer (as a percentage of the annual insurance premium)

1

2

3

1

2

3

4

5

6

7

8

9

10

11

12

up to 1 month inclusively

from 1 to 2 months inclusively

from 2 to 3 months inclusively

from 3 to 4 months inclusively

from 4 to 5 months inclusively

from 5 to 6 months inclusively

from 6 to 7 months inclusively

from 7 to 8 months inclusively

from 8 to 9 months inclusively

from 9 to 10 months, inclusively

from 10 to 11 months inclusively

over 11 months

20

30

40

50

60

70

75

80

85

90

95

100

Article 13. Rights and obligations of an insurant

      1. Insurant shall have the right to:
      1) require the explanations of conditions of compulsory liability insurance of the carrier, own rights and obligations under the contract of compulsory liability insurance of the carrier;
      2) receive the duplicate of insurance policy in case of its loss;
      3) use services of an independent expert for evaluation of the size of inflicted harm to health and (or) property of the affected person;
      4) be acquainted with the results of evaluation of the size of inflicted harm and calculations of the amount of insurance payment made by an insurer or independent expert;
      5) early terminate the contract of compulsory liability insurance of the carrier;
      6) controvert decision of an insurer on refusal in making insurance payment or reducing its amount in the manner established by the legislation of the Republic of Kazakhstan;
      7) receive the insurance payment in cases provided by the Law.
      The other rights of an insurant that are not inconsistent with the civil legislation of the Republic of Kazakhstan may be provided by the contract of compulsory liability insurance of the carrier.
      2. Insurant shall be obliged to:
      1) provide the details being required for inclusion into the contract of compulsory liability insurance of the carrier in accordance with the Law upon conclusion of the contract of compulsory liability insurance of the carrier;
      2) pay insurance premiums in amount, manner and terms established by the contract of compulsory liability insurance of the carrier;
      3) notify an insurer by available method (oral, written) immediately, but not later than three business days, as he (she) became known about occurrence of the insured event. In the following, the notification in oral form shall be confirmed in writing (within seventy two hours). In cases when the insurant and insured person is not one and the same person, the obligation on informing the insurer on occurrence of the insured event shall be imposed on the insured person.
      If the insurant (insured person) didn’t have a possibility to perform the mentioned actions for a valid reason, he (she) have to confirm it documentarily;
      4) take reasonable and available measures in occurred circumstances upon occurrence of the insured event for preventing or reducing the possible losses, as well as measures for saving the property and rendering of assistance to the 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).
      5) inform the relevant bodies on the insured event and the affected persons proceeding from their competence (subdivisions of the traffic police of internal affairs bodies, bodies of the state fire-fighting service, emergency medical service, emergency services);
      6) draw up an act on insured event on a transport;
      7) ensure a transfer of the right to contribution to a person being responsible for the occurrence of the insured event to an insurer.
      Other obligations of an insurant that are not inconsistent with the Laws of the Republic of Kazakhstan may be provided by the contract of compulsory liability insurance of the carrier.
      3. Obligations of an insurant are mentioned in subparagraphs 4), 5) and 7) of paragraph 2 of this Article shall be imposed on a person being directly operating the vehicle at the moment of occurrence of the insured event.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 26.05.2008 No. 34-IV (order of enforcement see Article 2).

Article 14. Rights and obligation of the insurer

      1. Insurer shall have the right to:
      1) require the presentation of details being required for inclusion into the contract of compulsory liability insurance of the carrier in accordance with the Law, as well as information on previous contracts of compulsory liability insurance of the carrier, insured event and insurance payments upon conclusion of the contract of compulsory liability insurance of the carrier, except for details provided by the Civil Code of the Republic of Kazakhstan;
      2) require documents confirming the fact of occurrence of the insured event and the size of harm being inflicted to the affected persons from the relevant state bodies and organizations, on the basis of their competence;
      3) perform evaluation of the damaged (destroyed) property of the affected person for determining the reasons and other circumstances of the traffic accident;
      4) use services of an independent expert for evaluation of the size of inflicted harm to health and (or) property of the affected person and determining the amount of insurance payment upon occurrence of the insured event;
      5) represent the right to contribution to a person being responsible for inflicting the harm in the cases provided by Article 23 of the Law;
      6) refuse in making insurance payment in full or in part on the grounds provided by Article 24 of the Law.
      The other rights of an insurer that are not inconsistent with the civil legislation of the Republic of Kazakhstan may be provided by the contract of compulsory liability insurance of the carrier.
      2. Insurer shall be obliged to:
      1) familiarize an insurant (insured person) with the conditions of compulsory liability insurance of the carrier, to explain his (her) rights and obligations arising from the contract of compulsory liability insurance of the carrier;
      2) issue insurance policy to an insurant (insured person) after conclusion of the contract of compulsory liability insurance of the carrier;
      3) register the insured event immediately upon receiving the information on its occurrence;
      4) perform the evaluation of the size of inflicted harm at the request of the insurant or his (her) representative, draw up an insurance act with specifying the calculation of the amount of insurance payment and provide it for introduction of a beneficiary within seven business days from the date of receiving the information on occurrence of the insured event;
      5) perform insurance payment in amount, manner and terms established by the Law upon occurrence of the insured event;
      6) compensate expenses to an insurant (insured person) incurred by him (her) for the purpose of prevention or reduction of losses upon insured event;
      7) provide the secrecy of insurance.
      The other obligations of an insurer that are not inconsistent with the civil legislation of the Republic of Kazakhstan may be provided by the contract of compulsory liability insurance of the carrier.

Article 15. Rights of the affected person

      1. Affected person shall have the right to:
      1) inform an insurer on occurrence of the insured event being occurred as a result of carrying out the carriage of passengers and their property by an insurant (insured person);
      2) perform instead of the insurant (insured person) the collecting of the documents are necessary for the carrying out of the insurance payment, and represent them to the insurer with whom the insurant (insured person) is concluded the contract of the compulsory liability insurance of the carrier;
      3) use the services of an independent expert for evaluation of the size of inflicted harm to health and (or) property;
      4) be acquainted with the results of evaluation of the size of inflicted harm and calculations of the amount of insurance payment made by an insurer or independent expert;
      5) receive insurance payment in amount, manner and terms established by this Law;
      6) challenge the decision of an insurer on refuse in making insurance payment or reduction of its amount in the manner established by the legislation of the Republic of Kazakhstan;
      7) submit requirement to a carrier on compensation of inflicted harm in amount of exceeding the sum of the inflicted harm over the sum of received insurance payment.
      2. In the 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.

Chapter 4. Insurance premiums

Article 16. Amount of insurance premiums

      1. The following amounts of the annual insurance premiums per unit of the vehicle (in the monthly calculation indexes) shall be established upon carrying out of the compulsory liability insurance of the carrier:

No.

Name of the vehicle

Amount of the annual premium

1

Automobile



1) motor cars, buses, microbuses:
up to 4 seats inclusively
more than 4 to 7 seats inclusively
more than 7 to 16 passenger seats inclusive
more than 16 to 30 passenger seats inclusive
more than 30 passenger seats
2) trams, trolleybuses



3

5
 

11,5
 

16
 

23
 

7

2

Air



1) planes

up to 50 passenger seats inclusively

more than 50 to 120 seats

more than 120 to 200 seats

more than 200 passenger seats

2) helicopters



400
 

990

2180
 

3820
 

135

3

Water



up to 50 passenger seats inclusively

more than 50 to 100 seats

more than 100 to 150 seats

more than 150 to 300 seats

more than 300 seats

50
 

100

150
 

300
 

530

4

Internal water



up to 50 passenger seats inclusive 17.5

more than 50 to 100 seats

more than 100 to 150 seats

more than 150 to 300 seats

more than 300 160 passenger seats

17,5
 

35

50
 

90
 

160

      2. Amount of the insurance premium on compulsory liability insurance of the carrier carrying out of the railway carriages shall be 0.2 percent of the amount of income of the realized services on carriage of passengers and their property received (subject to receiving) by the carrier in the territory of the Republic of Kazakhstan during the period of the validity of the contract of liability insurance of the carrier, shall be paid in the form of monthly payments from the income received (subject to receiving) for a month.
      3. the following amounts of insurance premiums shall be established upon conclusion of the contract of the compulsory liability insurance of the carrier for a period less than twelve months:

No.

Term of insurance

Amount of insurance premium (in percent of annual premium)

1

2

3

1

2
 

3
 

4
 

5
 

6
 

7
 

8
 

9
 

10
 

11
 

12

up to 1 month inclusively

from 1 to 2 months inclusively

from 2 to 3 months inclusively

from 3 to 4 months inclusively

from 4 to 5 months inclusively

from 5 to 6 months inclusively

from 6 to 7 months inclusively

from 7 to 8 months inclusively

from 8 to 9 months inclusively

from 9 to 10 months inclusively

from 10 to 11 months inclusively

over 11 months

20

30
 

40
 

50
 

60
 

70
 

75
 

80
 

85
 

90
 

95
 

100

      The enforcement of this paragraph shall not apply to the contract of compulsory liability insurance of the carrier concluded by the carrier carrying out the railway carriages.

Article 17. Increase of amount of insurance premiums

      1. Upon conclusion of the contract of compulsory liability insurance of the carrier before passengers carrying out the railway carriages, the amount of insurance premium provided by paragraph 2 of Article 16 of the Law may be increased by an insurer following the results of evaluation of the insurance risk conducted by him (her), but up to the amount not exceeding 0.5 percent of the sum of income received (subject to receiving) from carriage of passengers and their property in the territory of the Republic of Kazakhstan within the validity period of the contract of compulsory liability insurance of the carrier.
      2. Upon conclusion of the contract of compulsory liability insurance of the carrier carrying out the other types of passenger carriages except for railway, the amount of insurance premium provided by paragraph 1 of Article 16 of the Law may be increased by an insurer following the results of evaluation of insurance risk conducted by him (her) but no more than fifty percent.

Article 18. Procedure and terms of paying insurance premiums

      1. Procedure and terms of paying insurance premiums shall be established by the contract of compulsory liability insurance of the carrier.
      2. If the contract of compulsory liability insurance of the carrier provides paying of insurance premium in installments, the default of paying the current insurance contribution by an insurant may not be the ground for an insurer for early termination of the contract.
      3. Upon untimely paying insurance contribution, the insurant shall pay a forfeit in the manner and amount established by Article 353 of the Civil Code of the Republic of Kazakhstan.

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

Article 19. Determination of the insured event, size of inflicted harm

      1. Insured event on compulsory liability insurance of the carrier shall be recognized as the fact of occurrence of the civil responsibility of carrier on compensation for harm inflicted to life, health and (or) property of passengers upon their carriage.
      2. The harm inflicted to life and health of the affected person shall include material expression of harm linked with his (her) death, temporary or permanent disablement.
      Size of harm inflicted to life and health of the affected person shall be determined in accordance with the Law on the basis of documents issued by relevant organizations.
      3. Harm to property of the affected person shall include the cost of lost, deficient or damaged (deteriorated) property of a passenger during the carriage being received by the carrier for carriage (luggage) and (or) located at (on) the passenger.
      Upon the loss, deficiency and (or) damage (deterioration) of luggage and (or) things being at (on) passenger that happened through the fault of the carrier, the size of inflicted harm shall be determined as follows:
      1) in case of loss or deficiency of luggage, as well as things being at (on) a passenger - in amount of the cost of lost or deficient luggage and (or) things being at (on) a passenger;
      2) in case of damage (deterioration) of luggage, as well as things being at (on) a passenger - in amount of the sum on which their cost is decreased, and upon impossibility of recovery of the damaged luggage, as well as things being at (on) a passenger - in amount of their cost;
      3) in case of loss of luggage being delivered for the carriage with declaring its value - in amount of declared value of luggage.
      4. Proof of the occurrence of insured event, as well as sizes of the harm inflicted by him (her) shall be imposed on the insurant (insured person).
      Size of inflicted harm as a result of the occurrence of insured event at the written application of an insurant or his (her) representative shall be determined by an insurer.
      5. In case of disagreement with the results of evaluation of harm being inflicted to the property conducted by an insurer or by an independent expert, the insurant (insured person) or the affected person shall have the right to apply to another independent expert for evaluation of the size of harm. By this, the expenses being incurred by an insurant (insured person) or affected person shall be subject to compensation by an insurer regardless of making the insurance payment if the insurer admits or the court establishes the reasonableness and objectivity of the performed evaluation.
      6. If an insurer or independent expert didn’t conduct necessary inspection of the lost, deficient or damaged (deteriorated) property and assessment of harm inflicted to property, with the drawing up the insurance act within seven business days after receiving the information on occurrence of the insured event, the insurant (insured person) or the affected person shall have the right to use the services of the independent expert and begin the recovery (recycling) of the property. By this, the insurer shall not have the right to challenge the results of the assessing the size of size inflicted to property, unless he (she) proves that the impossibility of timely assessment of the damaged (destroyed) property is conditioned by the justifiable reasons (death, illness of the owner of the property) or existence of fault of an insurant (insured person) or affected person linked with deviation from the presentation of property for assessment.

Article 20: Determination of amount of insurance payment

      1. The maximum volume of the insurer's liability for one insured event (insured amount) shall be (in monthly calculation indices):
      1) for marine and air transportation:
      for the harm inflicted to life and health of each affected person and resulted:
      death - 2000;
      establishment of disability:
      Group I - 1600;
      Group II - 1200;
      Group III - 800;
      maim, injury or other impairment of health without the establishment of disability - in the amount of the actual costs for outpatient and (or) inpatient treatment, but not more than 200. By this, the amount of insurance payment for each day of inpatient treatment shall be no less than 1.5 monthly calculation index;
      for the harm inflicted to property of each affected person - in amount of inflicted harm, but not more than 250;
      2) by rail, inland water and road transportation:
      for the harm inflicted to life and health of each affected person and resulted:
      death - 1000;
      establishment of disability:
      Group I - 800;
      Group II - 600;
      Group III - 400;
      maim, injury or other impairment of health without the establishment of disability - in amount of the actual costs of outpatient and (or) inpatient treatment, but not more than 200. By this, the amount of insurance payment for each day of inpatient treatment shall be no less than 1.5 monthly calculation index;
      for the harm inflicted to property of each affected person - in amount of inflicted harm, but not more than 250.
      2. Insurance payment for the harm inflicted to life and health of the affected person, entailing death or the 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. Monthly calculation index established in accordance with the legislative act of the Republic of Kazakhstan on the date of insurance payment shall be used for calculation of amount of the insurance payment.
      4. Franchise under the contract of compulsory liability insurance of the carrier shall be five-fold size of the monthly calculation index for one insured event and each affected person.
      In cases when the size of inflicted harm exceeds established size of a franchise, the insurance payment shall be made in full measure.
      Insurance payment for harm inflicted to life and health of the affected person shall be carried out without the use of a franchise.
      5. The expenses incurred by an insurant (insured person) for the purpose of prevention or reduction of losses shall be subject to compensation by an insurer, if such expenses were necessary or were made ??for carrying out instructions of the insurer, even if the appropriate measures occurred unsuccessful.
      Such expenses shall be compensated at actual amounts, by this the total sum of insurance payment and compensation of expenses shall not exceed insured amount established by the contract of compulsory liability insurance of the carrier. If the expenses occurred in a result of fulfilling the instructions of the insurer by the insurant, they shall be compensated in full measure regardless of the insured sum.
      Mentioned expenses shall be compensated by an insurer directly to a person that incurred them.
      6. In case of insufficiency of the insured sum for the full recovery of inflicted harm, the carrier shall compensate the difference between the insured amount and the actual size of the harm to the affected person.
      7. In case of death of the affected person upon the absence of his (her) successors, the person that carried out the burial of the affected person shall be compensated by necessary expenses for burial by an insurer in amount of the actual costs, but within the insured sum established by the contract of compulsory insurance of liability of the carrier.

Article 21. General conditions of making insurance payment

      1. Requirement on insurance payment to an insurer shall be presented by an insurant (insured person) or any other person being a beneficiary, in written form accompanied by the documents being necessary for making insurance payment.
      2. Application on insurance payment shall be accompanied by the following documents:
      1) insurance policy (its duplicate);
      2) document confirming the fact of occurrence of the insured event and the size of harm inflicted to the affected persons;
      3) act on insured event on a transport, drawn up by a carrier;
      4) travel ticket or document substituting it (copy of the bulletin of ticket sales or voucher certified by the carrier), - in case of the issuance of travel ticket to a passenger, or witness statement executed in the manner established the legislation of the Republic of Kazakhstan;
      5) copy of certificate of health care organizations on the term of temporary disability or reference of the specialized institutes on establishment of disability to the affected person - in case of its establishment;
      6) a notarized copy of death certificate of the affected person and document confirming the right of a beneficiary to compensation for harm (copy), - in case of death of the affected person;
      7) list of lost, deficient or damaged (deteriorated) property of the affected person - in the case of inflicting the harm to property;
      8) documents confirming expenses incurred by an insurant (insured person) for the purpose of prevention or reduction of losses upon occurrence of the insured event - upon availability.
      Claiming the other documents in addition by an insurer from an insurant (insured person) or the affected person shall not be allowed.
      2-1. Act of the insured event on a transport drawn up by the carrier shall contain the following details:
      1 ) last name, first name, patronymic of the affected person;
      2) type of transport;
      3) flight number, train number, name of vessel and etc.;
      4) route;
      5) serial number of the ticket being available from the affected person;
      6 ) place, date and time of the occurrence of insured event;
      7 ) characteristic of damages inflicted to life and health of the affected person;
      8) description of damage caused to the property of the affected person;
      9) brief description of the circumstances of the insured event;
      10) the name of the competent body carrying out investigation;
      11) the name and location of medical institution to where the affected person was sent;
      12) the last name, first name, patronymic and signature of a head of transport organization or transport vehicle;
      13) the last name, first name, patronymic and signature of a representative of the competent body carrying out investigation;
      14) seal of a carrier.
      3. Insurer that accepted the documents shall be obliged to issue certificate with specification of the full list of submitted documents and the date of their acceptance to an applicant.
      4. Beneficiary shall be 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 the harm to the affected person (person having the right to compensation for harm) within the volume of the insurer's liability established by the Law, and received the right to insurance payment.
      5. Insurance payment for the harm inflicted to life and health of the affected person shall be carried out independently from the sums owing to him (her) (persons having the right to compensation for harm) under any other insurance contracts.
      6. Upon written application of the affected person or a notarized power of attorney, insurance payment may be made directly to a person that rendered (rendering ) services to him (her) for the rehabilitation of health and (or) property.
      7. Upon making insurance payment the insurer shall not have the right to require acceptance of conditions from a beneficiary, restricting his (her) right to claim to an insurer.
      Footnote. Article 21 as amended by the Law of the Republic of Kazakhstan dated 7 May, 2007 No. 244.

Article 22 Procedure for making insurance payment

      1. The insurance payment shall be made by an insurer within seven business days from the date of receiving the documents provided by Article 21 of the Law.
      2. In cases when amount of insurance payment is disputed by a beneficiary, the insurer shall be obliged to make insurance payment immediately in the part that is not disputed by any of mentioned persons, within the period established by paragraph 1 of the Article.
      Deputed part of insurance payment to be paid by an insurer within three business days from the date of concluding settlement agreement and its approval by court, or from the date of enforcement of court decision on the dispute, if decision is not applied for immediate execution by the court.
      3. If in result of event leading to occurrence of the insured event, the affected person’s health becomes deteriorated (disability or a higher degree of disability shall be established) or leading to death, the insurer shall be obliged to recalculate the amount of insurance payment in the manner and amount established by the Law on the basis of the application and the relevant documents received from the affected person (beneficiary). By this, upon recalculation, the sum of insurance payment shall be accepted to offset of previously paid sum.
      4. Upon untimely making of insurance payment, the 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.

Article 23. Right to contribution to a person that inflicted the harm

      1. Insurer that made insurance payment shall have the right to contribution to an insurant (insured person) within paid sum in the following cases:
      1) civil liability of an insurant (insured person) is occurred due to his (her) intentional actions oriented to occurrence of insured event or contributing to its occurrence, with the exception of actions committed in necessary defense and emergency;
      2) civil liability of an insurant (insured person) is occurred due to operation of a vehicle by him (her) in a state of alcoholic, narcotic or toxic intoxication;
      3 ) a person operating a vehicle 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 about which an insurant (insured person) knew or should have known;
      5) operation of a vehicle for the purposes other than its inherent technical purpose;
      6) upon intentional non-taking of measures for reduction of losses of the insured event by an insurant (insured person).
      2. If in the cases listed in paragraph 1 of this Article, a guilty person of inflicted harm is the person operating a vehicle in virtue of employment relationship with its owner or in the presence of its owner without drawing up a written form of the transaction, the insurer shall have the right to contribution to the owner of the transport vehicle.
      3. Right to claim shall be transferred to an insurer that made insurance payment within the sum paid by him (her) that an insurant (insured person) has to a person being responsible for the losses compensated by the insurer as a result of insurance.

Article 24. Grounds for releasing of an insurer from making insurance payment

      1. Insurer shall be obliged to refuse in insurance payment in full or in part if the insured event is occurred as a result of:
      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 necessary defense and emergency;
      Note RCLI!
      Subparagraph 2) is provided to be in wording of the Law of the Republic of Kazakhstan dated 03.07.2014 No. 227-V (shall be enforced from 01.01.2015).
      2) actions of a beneficiary, recognized as intentional crimes or administrative infractions being in causal connection with the insured event in the manner established by the legislative acts of the Republic of Kazakhstan.
      2. Also, the grounds for refusal of an insurer in making the insurance payment may be:
      1) obtaining the relevant compensation of loss by an insurant from a person being guilty in inflicting the harm;
      2) non-notification or untimely notifying an insurer on occurrence of the insured event, with the exception of cases provided by the Law;
      3) inflicting the harm to property of the affected person in the form of money, securities, gold, silverware, jewelry, garnish, works of art or other valuables.
      3. Untimely notifying or non-notifying an insurer on occurrence of the insured event may not be the ground for refusal in insurance payment, if it is conditioned by valid reasons and the relevant documents confirming the fact of occurrence of the insured event, inflicting the harm to life or health of the affected person and property for assessment in the same condition in which it was directly after occurrence of the insured event are presented.
      4. In existence of the grounds for refusal in insurance payment, the insurer shall be obliged to send the decision on full or partial refusal in insurance payment in written form with substantiated explanation of the reasons for refusal to a person submitted requirements on insurance payment within seven business days from the date of submitting the request.
      5. Insurer shall be released from making insurance payment if the insured event is occurred due to:
      1) impact of a nuclear explosion, radiation or radioactive contamination;
      2) military actions;
      3) civil war, civil unrest of any kind, riots or strikes.
      6. Insurer shall not have the right to refuse in insurance payment on the grounds not provided by this Article.

Chapter 6. Final provisions

Article 25. Procedure for settlement of disputes

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

Article 26. Responsibility for the breach of the legislation of the Republic of Kazakhstan on compulsory liability insurance of the carrier

      Persons being guilty in the breach of the legislation of the Republic of Kazakhstan on compulsory liability insurance of the carrier, and in intentional creation of the insured event and other illegal actions oriented to illegal obtaining insurance payment shall bear responsibility provided by the Laws of the Republic of Kazakhstan.

      The President
      of the Republic of Kazakhstan