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

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. 

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;

7-1) insurance ombudsman * a natural person carrying out the settlement of disagreements among participants of the insurance market in accordance with the Law of the Republic of Kazakhstan “Concerning Insurance Activity”, who is independent in own activity;

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.

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.

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.

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.

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.
Amended by 7) Law No. 311 of 27th April 2015 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Insurance and Islamic Financing.

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.

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.

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.

1.  The state supervision supervision and control [added by 10, to be effective January 1, 2020] for activities of insurance organisations shall be carried out by the National Bank of the Republic of Kazakhstan carried out by the authorized body for regulation, control and supervision of the financial market and financial organizations [modified by 10, to be effective January 1, 2020] in accordance with the legislation of the Republic of Kazakhstan.