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LAW No. 93 OF 13th DECEMBER 2005 OF THE REPUBLIC OF KAZAKHSTAN CONCERNING THE OBLIGATORY ECOLOGICAL INSURANCE
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Law No. 93 Revised and Updated

LAW No. 93 OF 13th DECEMBER 2005 OF THE REPUBLIC OF KAZAKHSTAN 
CONCERNING THE OBLIGATORY ECOLOGICAL INSURANCE 
AMENDMENTS AND ADDITIONS INTRODUCED BY:
  1)  Law No. 34 of 26th May 2008 of the Republic of Kazakhstan.  Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Prevention and Liquidation of Emergency Situations.  (Article 11).  Effective date n/a;
  2)  Law No. 234 of 30th December 2009 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Obligatory and Mutual Insurance, Taxation. (Article 4-1 introduced). Effective date n/a;  
  3)  Law No. 30 of 5th July 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of the Organisation of Activity of the National Bank of the Republic of Kazakhstan, Regulation of the Financial Market and Financial Organisations. (Article 6). Effective date n/a; and
  4) Law No. 227 of 3rd July 2014 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of the Improvement of Criminal Legislation.  (Articles: 21, 22). Effective January 1, 2015
This Law shall regulate the public relations emerging in the sphere of the obligatory ecological insurance and it shall establish the legal, economic and institutional fundamentals for its performance.
Article 1.  The Fundamental Definitions Used in This Law 
The following fundamental definitions are used in this Law:
1)  victim  a person whose life, health and (or) property has been damaged by emergency contamination of environment;  
2)  emergency contamination of environment  sudden, unintended contamination of environment, caused by an accident that took place in the course of conducting ecologically-hazardous types of business or other activities of physical persons and (or) legal entities, representing emission into the atmosphere and (or) discharge of solid substances into water or spread of solid, liquid or gaseous pollutants in a land surface area, in subsurface or generation of fumes, noises, vibrations, radiation, or electromagnetic, thermal, light pollution or other types of harmful impact physical, chemical, biological, which at certain time exceeds allowed levels;
3)  obligatory ecological insurance  a range of relations associated with the material protection of legitimate interests of physical and (or) legal entities (insurants) in the case of emergence of civil-law liability with regard to liabilities emerging due to causing harm to lives, property of third parties and (or) environment resulting from its emergency contamination;
4)  agreement for obligatory ecological insurance  an agreement concluded between the insurer and the insurant on the terms defined in this Law;
5)  beneficiary  an entity that in accordance with this law is the recipient of the insurance compensation;
6)  insurable event  an event of which the emergence entails the payment of the insurance compensation provided for by the ecological insurance agreement;
7)  insurance amount  amount of funds for which an item in the obligatory ecological insurance is insured and which represents the maximum amount of liability of the insurer in the case of occurrence of the insurable event;
8)  insurance premium  amount of funds which the insurant is obliged to pay to the insurer for the latter undertaking the obligation of making the insurance payment to the beneficiary in the amount defined in the obligatory ecological insurance agreement;
9)  insurance compensation  amount of funds payable by the insurer to the beneficiary within the amount of the insurance compensation in the case of occurrence of an insurable event;
10)  insurer  a legal entity that has been registered as an insurance organisation and has a licence providing it with the right to carry out insurance business, which in the case of emergence of an insurable event shall be obliged to make an insurance compensation to the beneficiary within an insurance amount defined in the agreement;
11)  insured  an entity for whom the obligatory ecological insurance is carried out;
12)  insurant  a physical person and (or) legal entity carrying out ecologically-hazardous types of business activities and other activity, who concluded with the insurer obligatory ecological insurance agreements;
13)  third parties  entities in legal relations participating in the procedures ensuing from the obligatory ecological insurance, whose interests have been damaged;
14)  authorised body  the central executive authority in the sphere of environmental protection and its territorial units;
15)  civil-law liability of physical persons and (or) legal entities carrying out ecologically-hazardous types of business and other activities  the duty of physical persons and (or) legal entities carrying out ecologically-hazardous types of business and other activities, to compensate for harm caused to lives, health, property of third parties and (or) environment, resulting from emergency pollution, as established by the civil legislation of the Republic of Kazakhstan;
16)  ecologically-hazardous type of business and other types of activity  business of physical persons and (or) legal entities resulting in actual or potential emergency contamination of environment.
Article 2.  The Republic of Kazakhstan Legislation Concerning the Obligatory Ecological Insurance 
1.  The Republic of Kazakhstan legislation concerning the obligatory ecological insurance shall be based upon the Constitution of the Republic of Kazakhstan and it shall consist of the Civil Code of the Republic of Kazakhstan, this Law and other obligatory legal acts of the Republic of Kazakhstan.
2.  This Law shall not apply to legal relations which are not covered by the Law of the Republic of Kazakhstan «Concerning Obligatory Insurance of the Civil-Law Liability of Facilities Owners Whose Business is Associated with Risks of Causing Harm to Third Parties».
3.  Where an international agreement, ratified by the Republic of Kazakhstan establishes different rules than those specified in this Law, then the rules of the international agreement shall apply.
Article 3.  Items in the Obligatory Ecological Insurance 
Material interests of entities carrying on ecologically-hazardous types of business and other activities, associated with their duties established by the civil legislation of the Republic of Kazakhstan with regard to compensation of harm caused to lives, health, property of third parties and (or) to the environment, resulting from emergency pollution, shall be recognised as items in the obligatory ecological insurance.
Article 4.  The Objectives and Fundamental Principles of the Obligatory Ecological Insurance 
1.  Compensation for harm caused to lives, health, property of third parties and (or) the environment resulting from its emergency contamination, shall be recognised as the objective of the obligatory ecological insurance.
2.  The following shall be recognised as the fundamental principles of the obligatory ecological insurance:
guaranty of compensation for losses;
security of performance by the parties of their obligations under obligatory ecological insurance agreements;
economic encouragement of prevention of emergency contamination of the environment.
Article 4-1.  Special Considerations in Carrying out Obligatory Ecological Insurance 
Introduced by 2)  Law No. 234 of 30th December 2009 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Obligatory and Mutual Insurance, Taxation. (Article 4-1 introduced).
1.  A legal entity registered as an insurance organisation, prior to the receipt of a licence for the right to carry out obligatory ecological insurance, shall be obliged to have affiliates and (or) insurance agents in the capital city, cities of republic's, province and district significance.
2.  There shall not be allowed activity directed towards restriction or removal of competition, granting or receipt of baseless advantages in respect to the conclusion of agreements of obligatory ecological insurance by certain insurers before other, infringement on rights and legitimate interests of insurants.
Article 5.  Entities Whose Civil Law Liability is Subject to Obligatory Ecological Insurance 
The civil law liability of physical persons and (or) legal entities carrying out ecologically-hazardous types of business and other activities, shall be subject to obligatory ecological insurance.
The list of ecologically-hazardous types of business and other activities shall be defined by the Republic of Kazakhstan Government.
Article 6.  The State Supervision and Monitoring in the Sphere of the Obligatory Ecological Insurance 
Amended by 3)  Law No. 30 of 5th July 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of the Organisation of Activity of the National Bank of the Republic of Kazakhstan, Regulation of the Financial Market and Financial Organisations.
1.  The state supervision of the compliance by physical persons and (or) legal entities carrying out ecologically-hazardous types of business and other activities with the duty of concluding obligatory ecological insurance agreements established by this Law, shall be carried out by the authorised body.
 	2.  The state monitoring of the activities of insurance organisations shall be carried out by the  National Bank of the Republic of Kazakhstan    in accordance with the Republic of Kazakhstan legislation.
Article 7.  Obligatory Ecological Insurance Agreements and the Procedure for Their Conclusion 
1.  The obligatory ecological insurance shall be carried out on the basis of agreements to be concluded in accordance with this Law and the Civil Code of the Republic of Kazakhstan between the insurant and the insurer in favour of third parties whose lives, health and property and (or) environment may be damaged.
Physical persons and (or) legal entities carrying out ecologically-hazardous types of business and other activities shall not have the right to carry on their business without concluding obligatory ecological insurance agreements.
Where there is more than one owner of a facility, who carry out an ecologically-hazardous type of business or another activity, the obligatory ecological insurance agreement shall be concluded by any one of them with the obligatory list of the insureds who are the owners of the facility in the insurance policy.
2.  Obligatory ecological insurance agreements shall provide for the payment of insurance compensation in respect of the obligations emerging due to causing harm to lives, health, property of third parties and (or) environment in the course of performance by insurants of ecologically-hazardous types of business and other activities, except for compensation for moral harm, lost profits and payment of damages.
3.  Obligatory ecological insurance agreements must be concluded only with insurers who have licences granting the right to carry on business in this type (class) of obligatory insurance.
Insurants shall be free to select insurers.