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LAW No. 580 OF 7th JULY 2004 OF THE REPUBLIC OF KAZAKHSTAN CONCERNING THE OBLIGATORY INSURANCE OF THE CIVIL LIABILITY OF OWNERS OF FACILITIES OF WHICH THE FUNCTIOINING IS ASSOCIATED WITH THE RISK OF CAUSING HARM TO THIRD PARTIES
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LAW No. 580 OF 7th JULY 2004 OF THE REPUBLIC OF KAZAKHSTAN

CONCERNING THE OBLIGATORY INSURANCE OF THE CIVIL LIABILITY OF OWNERS OF FACILITIES OF WHICH THE FUNCTIOINING IS ASSOCIATED WITH THE RISK OF CAUSING HARM TO THIRD PARTIES
AMENDMENTS AND ADDITIONS INTRODUCED BY:
         1)  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;
2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to This Persons. (Articles: 1 replaced, 3, 4, 5 replaced, 6, 8, 9, 12, 14, 15 replaced, 16, 17 replaced, 18, 19, 20). 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 7). Effective date n/a; 
        4) Law No. 189 of 11th April 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 Civil Protection. (Articles: 1, 5, 7, 16). Effective date n/a; and
       5) 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: 20, 21).  Effective January 1, 2015
This Law shall regulate social relations that emerge in the sphere of obligatory insurance of civil liability of owners of facilities the functioning of which is associated with the risk of causing harm to third parties and shall establish legal, economic and organisational bases of its carrying out. 
Article 1.  The Fundamental Definitions Used in This Law
Introduced by  2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
Amended by 4) Law No. 189 of 11th April 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 Civil Protection.
The following fundamental definitions shall be used in this Law:
1) emergency * destruction of buildings, structures and (or) technical facilities that are used at a dangerous industrial item, spontaneous explosion and (or) escape of dangerous matters;
2) incident * failure or malfunction of technical devices that are used at a dangerous industrial item, departure from the regime of a technological process, violation of the legislation of the Republic of Kazakhstan;
3) dangerous industrial factor * a physical phenomenon which occurs during emergencies, incidents at dangerous industrial items, which inflicts harm to lives, health and (or) property of third persons;
4) owner of an item, whose activity relates to danger of inflicting harm to third persons * a natural persons and (or) legal entity that holds an item, whose activity relates to danger of inflicting harm to third persons, on the right of ownership, right of business authority or right of operative control or on any other legitimate basis;
5) civil legal liability of the owner of an item, whose activity relates to danger of inflicting harm to third persons * the liability established by the civil legislation of the Republic of Kazakhstan for natural persons and (or) legal entities to compensate harm inflicted to lives, health and (or) property of third persons with a dangerous industrial factor;
6) beneficiary * a person who in accordance with this Law is a recipient of the insurance payment;
7) insurance case * an event with the occurrence of which the agreement of obligatory insurance of the liability of owners of items, whose activity relates to danger of inflicting harm to third persons, stipulates effecting an insurance payment;
8) insurance amount * a money amount, for which an obligatory insurance item is insured and which constitutes the maximum amount of the liability of the insurer when an insurance case occurs;
9) insurance premium * a money amount which the insurant is obliged to pay the insurer for the undertaking by the latter of obligations to make an insurance payment to the insurant (beneficiary) in an amount determined by the agreement of obligatory insurance of the liability of owners of items;
10) insurance payment * a money amount that is paid by the insurer to the insurant (beneficiary) within the limits of the insurance amount where an insurance case occurs;
11) insurer * a legal entity registered as an insurance organisation and having a licence for the right to carry out insurance activity, which is obliged where an insurance case occurs to effect an insurance payment to the insurant or other person (beneficiary) within the amount (insurance amount) as determined by the agreement;
12) insured * a person in relation to whom insurance is carried out;
13) insurant * a person which concluded with the insurer an agreement of obligatory insurance of the civil legal liability of the owner of an item, whose activity relates to danger of inflicting harm to third persons.  Unless it is stipulated otherwise by the insurance agreement, the insurant shall be the insured at the same time;
14) authorised body means the central executive body exercising guidance and inter-sectoral coordination, elaboration and implementation of the state policy in the sphere of civil protection;
15) third person * a person to whose life, health and (or) property harm is inflicted with a dangerous industrial factor.
Employees and owners of an item, whose activity relates to danger of inflicting harm to third persons, shall not be third persons.
Article 2.  The Legislation of the Republic of Kazakhstan Concerning Obligatory Insurance of Civil Liability of Owners of Facilities Activities Whereof  Are Associated with The risk of Causing Harm to Third Parties
1.  The legislation of the Republic of Kazakhstan concerning obligatory insurance of civil liability of owners of facilities the functioning whereof is associated with the risk of causing harm to third parties shall be based on the Constitution of the Republic of Kazakhstan and shall consist of the Civil Code of the Republic of Kazakhstan, this Law and other regulatory legal Acts of the Republic of Kazakhstan.
2.  If other rules are established by an international agreement ratified by the Republic of Kazakhstan than those, which are contained in this Law then the rules of the international agreement shall apply.
Article 3.  Object of Obligatory Insurance of Civil Liability of Owners of Facilities The functioning whereof is associated with The risk of Causing Harm to Third Parties
Amended 2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
An object of obligatory insurance of civil liability of owners of facilities the functioning whereof is associated with the risk of causing harm to third parties (henceforth – obligatory insurance of liability of facilities owners) shall be property interest of an owner of a facility the functioning of which is associated with the risk of causing harm to third parties, which is associated with his obligation established by the civil legislation of the Republic of Kazakhstan to compensate harm caused to life, health and (or) property of third parties with a dangerous industrial factor.
Article 4. Purpose and Fundamental Principles of Obligatory Insurance of Liability of Facilities Owners
Amended by 2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
1.  Ensuring protection of property interests of third parties to lives, health and (or) property whereof harm has been caused  by a dangerous industrial factor by means of insurance payments shall be the purpose of obligatory insurance of liability of facilities owners.
2.  The following shall be the fundamental principles of obligatory insurance of liability of facilities owners:
ensuring protection of property interests of third parties in the volume and in accordance with the procedure established by this Law;
ensuring fulfilment by the parties of their obligations under an agreement of obligatory insurance of liability of facilities owners.
Article 4-1.  Special Considerations in Carrying out Obligatory Insurance of the Liability of Owners of Items
Introduced by 1)  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.
1.  A legal entity registered as an insurance organisation, prior to the receipt of a licence for the right to carry out obligatory insurance of the liability of owners of items, 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 insurance of the liability of owners of items by certain insurers before other, infringement on rights and legitimate interests of insurants.
Article 5.  Items, Whose Activity Relates to Danger of Inflicting Harm to Third Persons
Introduced 2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
Amended by 4) Law No. 189 of 11th April 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 Civil Protection.
1.  Items, whose activity relates to danger of inflicting harm to third persons, shall be items which are subject to declaration of industrial safety in accordance with the Law of the Republic of Kazakhstan  “Concerning Civil Protection”.
The list of items, in respect to which declarations of industrial safety are registered, shall be placed by the authorised body on its internet-resource or be published in republic's periodical printed editions in the Kazakh and Russian languages.
	2.  If within the term of validity of the agreement of obligatory insurance of the liability of owners of items a given item stops constituting danger of inflicting harm to third persons, then the insurant shall file   to the Chief State Inspector of the Republic of Kazakhstan for State Supervision in the Sphere of Industrial Safety or person deputising him an application for striking the declaration of industrial safety off registration and an expert conclusion concerning the status of industrial safety at the item.  The Chief State Inspector of the Republic of Kazakhstan for State Supervision in the Sphere of Industrial Safety or person deputising him on the basis of consideration of the expert conclusion shall pass a decision concerning striking the declaration of industrial safety off registration or give a motivated refusal.
Striking a declaration of industrial safety off registration shall grant the insurant the right for advance termination of the agreement of obligatory insurance of the liability of owners of items.  In this respect, the insurer shall have the right to a part of insurance premium proportionally to the time, within which the insurance was effective.
Article 6.  Persons Civil Liability Whereof Shall Be Subject to Obligatory Insurance
Amended by 2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
1.  Civil liability of facilities owners activities whereof is associated with the risk of causing harm to third parties shall be subject to obligatory insurance. 
	1-1.  Operation of an item, whose activity relates to danger of inflicting harm to third persons, without conclusion of an agreement of obligatory insurance of the liability of owners of items shall be prohibited.  
2.  Conclusion of an agreement by facilities owners the functioning whereof is associated with the risk of causing harm to third parties, grant of the right of temporary use of the dangerous item to another person on voluntary insurance of their civil liability for harm caused to lives, health and (or) property of third parties shall not exempt them from obligation associated with conclusion of an agreement of obligatory insurance of liability of facilities owners.
Article 7.  The State Supervision and Control in the Sphere of Obligatory Insurance of Liability of Facilities Owners
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;
4) Law No. 189 of 11th April 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 Civil Protection.
1.  The state supervision for activities of insurance organisations shall be carried out by  the National Bank of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan. 
2.  State control of the fulfilment by owners of objects the activities of which involves danger to cause harm to third persons, of the obligation to conclude the agreement on obligatory insurance of liability of owners of objects and their compliance with the requirements established by this Law shall be exercised by the official persons of the authorised body carrying out state supervision in the sphere of industrial safety, as well as by state bodies within the limits of their competence as established by the legislation of the Republic of Kazakhstan. 
Article 8.  Agreement of Obligatory Insurance of Liability of Facilities Owners and the Procedure for Its Conclusion
Amended by 2)  Law No. 275 of 4th May 2010 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 Insurance of the Civil legal Liability of Owners of Items, Whose Activity Relates to Danger of Inflicting Harm to These Persons.
	1.  Obligatory insurance of liability of facilities owners shall be carried out on the basis of an agreement being concluded between an insurant and an insurer in favour of third parties in accordance with this Law.  
When there are more than one owner of a facility the functioning of which is associated with the risk of causing harm to third parties an agreement of obligatory insurance of liability of facilities owners shall be concluded by any of them with obligatory indication of all owners of the facility as the insured ones in an insurance policy.
2.  An agreement of obligatory insurance of liability of facilities owners shall provide for effecting insurance payment associated with liabilities emerged in consequence of causing harm to life, health and (or) property of a third party with a dangerous industrial factor except for compensation for moral harm, loss of profit and payment of forfeit.