Property insurance
Insurance of civil liability of space object owners
Voluntary insurance of civil liability of space object owners is carried out by concluding a contract of voluntary insurance of civil liability of space object owners with individuals and legal entities for damage caused to life, health or property of third parties, as well as the environment as a result of space activities.
Object of insurance
The object of insurance is the property interests of the Insured related to his duty, established by the legislation of the Republic of Kazakhstan, to compensate damage caused to life, health and/or property of third parties, recognized as injured persons, environment in connection with the space objects operation.
In case of causing damage to third parties, insurance coverage is valid under the condition that the harm to life, health and/or property of third parties is caused directly by the space object (its fragments or parts) or by objects dropped from it.
In case of causing damage to the environment, insurance covers the damage to the land, subsoil, soil, surface and ground water, as well as to the plant and animal world of the Earth as a result of the release into the environment of substances, mixtures of substances, materials, amount and/or concentration of which exceeds the specified standards.
Subject of insurance
The subject of insurance is the insurance of property interests of the Insured related to his duty, established by the legislation of the Republic of Kazakhstan, to compensate damage caused to life, health and/or property of third parties, recognized as injured persons, environment as a result of insured events specified in the Insurance Contract and during its validity period.
The Insured event
The fact of the occurrence of civil liability of the Insured is recognized as an insured event for indemnity of:
- damage to life/health and property of third parties caused directly by a space object;
- damage to environment caused directly by a space object.
The insured risk is the risk of the occurrence of liability for damage to third parties, environment caused by the Insured during space activities.
An event is recognized as an insured event, provided that:
- the event is not an exception from the insurance established by these rules and insurance contract;
- the event took place during the validity of the insurance contract;
- damage/loss to third parties was caused within the territory specified in the insurance contract as a result of space activities;
- there is a documented cause-effect relations between the fact of causing damage/loss and actions (inactions) of the Insured, committed in the framework of space activities.
The moment of occurrence of the insured event is the moment in time when the damage (loss) indemnified under the terms of the insurance contract was caused to a third party. If it is not possible to establish the moment of time when the damage (loss) was caused, then this moment is considered the moment of its detection. If the damage (loss) is extended in time, then the moment when it was caused is considered the moment when its manifestation began for the first time.
Causing harm to several Beneficiaries for the same reason is considered as one insured event. A circumstance that is united not only by its nature, but also by the time of its occurrence (regardless of the time when circumstances were revealed) is considered as the reason. The moment of occurrence of such insured event is considered the moment of occurrence of the obligation of the Insured to compensate damage caused to the property interests of the first Beneficiary from the entire range of Beneficiaries.
An event is considered insured if it has signs of probability and chance.
The Insured sum and insurance indemnities
When insuring the civil liability of the Insured for causing damage to third parties and environment, the insured sum is determined by agreement of the parties in each specific insurance contract, taking into account the individual characteristics of space objects launched, the flight test program, the program of operating objects in outer space and possible property claims of third parties. The insured sum is the maximum amount (limit) of the Insurer’s liability in case of an insured event.
Unless otherwise provided by the insurance contract, the insured sum specified in the insurance contract shall be deemed established in respect of the totality of insured events that occurred during the period when the insurance was valid. In case of insurance indemnities, the total insured sum is reduced by the amount of the indemnity made.
The insured sum can be set in respect of each specific insured event that may occur during the insurance period. In such case, when making an insurance indemnity, the corresponding liability limit is reduced by the amount of insurance indemnity for the respective insurance risk.
The insured sum specified in the Insurance Contract cannot be subsequently challenged, unless the Insured deliberately misled the Insurer regarding this sum, who did not use the insurance risk assessment before the insurance contract was entered into.
Liability limits are established by the Insurance Contract. Insurance indemnities for one or series of insured events as a result of one event cannot exceed the insured sum established under the Insurance Contract.
The insurance contract may provide the establishment of separate liability limits for causing damage:
- to life and health of the injured persons – each one, or on several, or all persons in the aggregate for one and/or several insured events during the insurance period;
- to property to each one, or several, or all persons in aggregate for one or several insured events during the insurance period;
- to environment.
Deductible is provided for the insurance contract, the size and type of which is reflected in the insurance contract.
Insurance premium
The insurance premium is calculated according to the insurance rates that determine the rate of insurance premium charged from the insured sum taking into account the degree and nature of the insured risk.
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: year of production, stage of activity, purpose of use of the space object, resource, engine hours, intensity of use, staff qualification, operating territory, etc.
The insurance premium is payable by the Insured one-time or in installments in the form of periodic insurance premiums, cash payments or by bank transfer, in the manner specified in the insurance contract.