Professional liability insurance
The object of insurance
The object of insurance is the property interests of the Insured related to its obligation, established by the civil legislation of the Republic of Kazakhstan, to compensate the damage caused to life, health and / or property of third parties as a result of professional activities carried out by the Insured.
The Insurer is liable provided that:
- harm to life, health or property caused to the injured persons is in direct connection with the implementation of the professional activities of the Insured specified in the Insurance Contract;
- the insured event that caused harm to the injured persons occurred within the insurance territory and during the term of the Insurance Contract.
The subject of the insurance
The subject of the insurance contract is professional liability insurance, which provides insurance indemnities in the amount of partial or full compensation for damage in connection with causing harm to third parties as a result of erroneous actions (inaction) and / or omissions in the process or as a result of professional activities carried out by the Insured on the basis of a special permission (license, patent, etc.) and / or requiring special knowledge, experience and / or qualification.
Professional liability insurance for providing professional services (works) is intended in respect of persons in certain professions: architects, medical workers, lawyers, attorneys, private bailiffs, security guards, insurance and stock brokers, customs representatives, etc.
The property interests of the Insured related to his responsibility for causing harm to the life, health or property of third parties as a result of work, services, etc., are not subject to insurance if its activity does not relate to the Insured’s core business or does not directly flows from it.
The Insured sum
The insured sum is established by agreement of the parties and represents the maximum amount of the Insurer’s liability under the insurance contract. In this case, the terms of the insurance contract may provide for:
- the cumulative ceiling of the liability (total insured sum) – in this case, the sum of all insurance indemnities for all insurance cases for the entire period of the insurance contract (regardless of the number of injured persons) cannot exceed this amount;
- the ceiling of the liability for one or several insured events (sublimit), regardless of the number of injured persons;
- the ceiling of the liability for one or several insurance risks (sublimit) covered by insurance regardless of the number of injured persons;
- it is possible to use other types of limits (sublimits) of the Insurer’s liability in the insurance contract that do not contradict the legislation of the Republic of Kazakhstan.
Deductible is established at conclusion of insurance contracts, the size and type of which is determined by the insurance contract. The deductible (unconditional or conditional) is established by agreement of the parties either as a percentage to the insured sum or in the absolute amount.
A deductible may be established for all or certain types of compensable damages stipulated by the insurance contract.
The insurance premium payable under the insurance contract is calculated according to the insurance rates that determine the rate of insurance premium charged from the insured sum, taking into account the object of insurance and the nature of the insured risk. Insurance premiums are paid in the national currency of the Republic of Kazakhstan – tenge.
When determining the payable insurance premium, the insurer is entitled to use increasing and decreasing coefficients to the basic insurance rates, determined depending on risk factors: type of activity, production equipment, qualification of a specialist, etc.
The Insured event
The insured event is the fact of establishing the professional liability of the Insured for compensation of harm caused to life, health and / or property of third parties and the Insured’s obligation to compensate damage caused to the property interests of the injured persons as a result of activities carried out by the Insured under a valid court decision or voluntary admission of guilt by the Insured, with the written consent of the Insurer.
The professional liability insurance contract provides compensation to clients (patients, etc.) of material damage caused as a result of undeliberate and unintentional actions of the Insured, made in the process of performing their official duties.
The compensation for damage caused by the Insured by non-performance (improper performance) of professional duties under the civil contract is provided by the professional liability insurance contract of the Insured under obligations arising from contracts.
An insured event under the liability insurance contract towards state bodies (customs, tax, etc.), is events that entailed non-fulfillment (improper fulfillment) of obligations by the Insured, and the associated obligation to pay the due payments (fees, duties) in the amount of outstanding obligations.
The fact of the occurrence of professional liability of the Insured for professional obligations as a result of harm-doing to injured persons is recognized as an insured event, provided that:
- the damage caused to the injured persons was first discovered during the validity period of the insurance contract, and the Insured informed the Insurer no later than 10 calendar days after the Insurer became aware of such damage, but, in any case, within the limitation period under the insurance contract;
- there is a direct causal connection of professional error and the fact of harm-doing;
- claims to compensate the damage caused by this event are declared in accordance with and on the basis of the civil legislation of the Republic of Kazakhstan;
- the damage is caused in direct connection with the implementation of the Insured’s professional activities specified in the insurance contract;
- the Insured’s professional activity was carried out subject to the availability of necessary licenses, permissions as well as compliance with the qualification requirements;
- the damage was caused due to errors and / or omissions made in the provision of professional services by the Insured.
Insurance coverage applies exclusively to professional liability for property damage and does not cover liability for moral damage. The duty of proving the occurrence of the insured event, as well as the losses caused to them, lies on the Insured.