Compulsory environmental insurance

Compulsory environmental insurance is made in accordance with the Law of the Republic of Kazakhstan “On compulsory environmental insurance”.

The object to the compulsory environmental insurance is the valuable interest of a person, performing the environmentally-dangerous economic or other types of activities, related to his/her duties, established by the Civil Laws of the Republic of Kazakhstan, to reimburse the harm caused to life, health or property of third parties and/or the environment as a result of its hazardous contamination. The person engaged in environmentally-dangerous economic or other types of activities cannot act without a compulsory environmental insurance contract.

Insured events

The insured event under the compulsory environmental insurance contract is the occurrence of the civil liability of the Insured to indemnify harm caused to life, health or property of third parties and/or the environment as a result of its hazardous contamination.

Value of the insured sum under the compulsory environmental insurance contract is fixed upon the agreement of the parties; however the value of the insured amount shall not be less:

  1. 5,000-fold monthly calculated indices fixed by the law on the republican budget for a relevant financial year as of the date of the compulsory environmental insurance contract with an individual being a sole entrepreneur;
  2. 65,000-fold monthly calculated indices fixed by the law on the republican budget for a relevant financial year as of the date of the compulsory environmental insurance contract with a legal entity;
  3. 17,000-fold monthly calculated indices fixed by the law on the republican budget for a relevant financial year as of the date of the compulsory environmental insurance contract if it is entered into in part of civil responsibility for pollution only.

In accordance with the Law of the Republic of Kazakhstan “On compulsory environmental insurance” the value of the insurance premium is fixed upon the agreement of the Parties, however the value of the insurance premium subject of the insured amount is:

No Environmentally-dangerous facility Minimum insured amount (MCI) Insurance rate (%)
1 Individual being a sole entrepreneur 5,000 0.76 — 2.65
2 Legal entity 65,000
3 In cases where the compulsory environmental insurance contract is entered into in terms of civil liability for pollution only 17,000 0.59 — 2.05

Insurance period — the Insurance contract is executed for 12 months and expires upon occurrence of the first insured event.

Insurance payments are determined by the insured out of the beneficiary’s claim or order of the court on damage reimbursement which entered into legal force.

Insurance payment is made by the Insurer within 30 days after delivery of all required documents.