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 object of insurance and the nature of the insured risk.

Both the total amount of insurance premium and the insurance premium for each object, subject / group of insurance objects and for each insured risk can be established by insurance contract based on the insured sum and insurance rate.

The Insured event

An insured event is the death, damage or loss of an insured space object as a result of the occurrence of an event or a set of events (insured risks) defined by the insurance contract. An event is recognized as an insured event if the death, damage or loss of the insured object occurred during the during the validity period of the insurance contract and have signs of randomness and probability of its occurrence.       

Insured event is a fact of death, loss, missing, complete (actual or constructive) death, damage or breakdown of a space object as a result of

1) fire – exposure to open flame, high temperature, hot gases, products of combustion (smoke, soot, etc.) due to an uncontrolled burning process in the form of an open flame or smoldering that suddenly occurred outside of a specially designated area and spread independently (with exception of fire as a result of arson), as well as measures taken to rescue property and fire extinguishing;

2) explosion – a rapidly proceeding process of releasing a large amount of energy in a limited volume in a short period of time, caused by the desire of gas or steam to expand;

3) lightning – a direct lightning impact, in which the lightning current flows through the elements of the insured property and has a thermal, mechanical or electrical effect, or a secondary lightning impact associated with high electric potential induced by sparking;

4) natural disasters – destructive natural hazards that, by their intensity, scale of spread and duration, can cause a damaging effect on the insured property (tsunami, storm, hurricane, typhoon, tornado, cyclone or other movement of air masses caused by natural processes in the atmosphere (only if the speed of the air masses that caused the loss exceeded 20 m/s), rain, hail, flood, flood, earthquake, volcanic eruption, mountain landslide, rockfall, snow avalanche, landslide, mudflow, heating water pound);

5) exposure of steam and/or liquid – damage or destruction of a space object due to sudden damage to hydraulic systems (fuel supply and storage systems and oxidizer, thermal control and life support systems, hydraulic systems, water supply, sewage, heating system, fire-fighting (sprinkler) system and other systems), accompanied by the release of the working fluid or steam;

6) subsidence or other ground movement;

7) the impact of foreign objects – non-estimated impact on the insured property of other objects of rocket and space technology as part of a space rocket, airplanes, helicopters, spacecraft, aerostats, airships and other aircraft, their parts or their cargo in airspace or outer space, meteorites flows, cosmic particles, radiation belts of the Earth, as well as the fall on the insured property of other objects and solids that are not part of the insured property;

8) arson – intentionally bringing the property into a state unsuitable for further use and (or) reducing its consumer characteristics using fire under conditions precluding its independent occurrence or destruction or damage to the insured property by careless handling of fire;

9) illegal actions of third parties – exclusively the following acts committed by third parties that have signs of an offense or a crime in accordance with the applicable administrative or criminal legislation of the Republic of Kazakhstan, namely: intentional destruction or damage to the insured property; destruction or damage to the insured property through negligence; robbery; break-in theft; plundering. The list of specific forms of illegal actions included in the term “illegal actions of third parties” may be modified by the Insurance Contract. In this case, specific forms of illegal actions are specified in the insurance contract;

10) using fire extinguishing measures – impact on the insured space object of fire extinguishing substances, disassembling or breaking down the structures of the insured object and other measures applied to extinguish and/or prevent the spread of fire. In this case, damages caused by the death or damage of the object as a result of the gulf from the neighboring premises shall not be subject to compensation, unless this is due to the need to apply fire extinguishing measures with respect to the insured object;

11) design, manufacturing, installation errors: insurance covers the destruction, damage or breakdown of space object components as a result of violations of the established rules and/or design standards or design of an insured object by project and/or design organizations, unintentional errors of organizations; manufacturers or installers approved as a result of:

• a) unintentional non-observance (violation) by officials and employees of relevant organizations of the requirements of job descriptions, technical regulations, standards, rules and other mandatory for the application of regulations defining the procedure and conditions for carrying out certain types of work;

• b) unintentional non-observance (violation) by officials and employees of relevant organizations of the rules of performing certain types of design (or construction), manufacturing, installation, or acceptance tests of a space object;

• c) unforeseen errors (omissions) associated with the use of materials, parts, structures, tools and equipment, as well as nodes with internal, hidden defects that could not be detected by existing methods of objective control during the manufacture, installation or acceptance tests, or not complying with the requirements established by technical regulations, rules and other normative acts that are binding for application, as well as established standards;

• d) unintentional errors (omissions) of employees of the Insured (Beneficiary) during the manufacture, installation or acceptance tests of a space object made due to the influence of random factors that led to the impossibility of timely, accurate and reliable actions of employees, with the exception of intent;

12) operating errors – sudden damage (breakdown) or loss of the spacecraft and/or transponder due to unintentional and accidental errors of the operational or production personnel of the Insured (Beneficiary) caused by the influence of random external factors leading to the impossibility of timely, accurate and reliable actions of personnel, with the exception of the intent of the mentioned persons from among the personnel;

13) off-design modes of operation – sudden exposure to modes which parameters are outside the design range for this type of insured property, which caused abnormal processes in its elements, accompanied by unacceptable overheating, vibrations, dynamic shocks, mechanical stresses, electrical breakdowns and overloads, hydraulic shocks, ferroresonance overvoltages, partial or total expenditure of non-earmarked materials, substances, component elements without achieving the desired result, or failure of a space object and/or equipment installed on it that is necessary to accomplish the spacecraft’s target task. Damage from accidental destruction of liquid-jet engines and their components, fuel tank, oxidizer tank with explosion and without explosion can also be insured against this risk;

14) failure of the payload or space vehicle – that as a result of an unforeseen event (incident) that occurred during the validity period of the Insurance Contract, the operation of the payload does not meet the specifications, the space vehicle fail or damage of its subsystems, or a sudden short flow degradation of the space vehicle or its subsystems, and, despite all measures taken by the Insured (Beneficiary), the payload cannot be used to implement the target of space vehicle;

15) design defects of the ground-based infrastructure – unforeseen destruction or physical damage of the structural elements of ground objects (foundation, columns, floors, beams, bearing walls, etc. of the insured property) or buildings, structures, constructions, in which the insured space object is located, unrelated to deterioration due to defects in internal and external supporting structures that are essential for the sustainability of the insured property (buildings, premises, structures, constructions), and impossibility in this connection to use the insured property (buildings, premises, structures, constructions) for its intended purpose in accordance with sanitary and epidemiological and other norms that establish requirements for residential and other premises (buildings, structures, constructions);

16) excessive fluctuations of electrical network parameters – excessive frequency, voltage and current voltage fluctuations in networks intended for the transmission and distribution of electricity, or in networks in which electricity is used to transmit signals of any kind (including cases of termination of the networks functioning over the above reason);

17) excessive fluctuations or changes in the parameters of gas, sewer, heat, water supply networks, including cases of termination of their functioning: elements of engineering and communication ground objects, including heating systems, electricity, gas and water supply, sewage systems, fire alarm equipment, fire extinguishing equipment, sanitary equipment, ventilation systems, air conditioning, waste disposal systems, dust cleaning, installation of telephones, radio systems, as well as equipment connected to such networks (lifting equipment, elevators, travolators. escalators, etc.).

Herewith, insurance does not covered and insurance indemnities are not made for damage:

• a) caused by exposure to water, acid or other vapors that arise in the process of production activities of the Insured (Beneficiary);

• b) caused by the influence of permanent operating factors (as a result of deterioration, cavitation, erosion, corrosion, scaling, etc.) and/or weather factors;

• c) for which third parties are liable (manufacturers, suppliers, other sub-contractors) under quality assurance contracts of the insured equipment or in accordance with the current legislation;

• d) due to errors during commissioning and testing;

• e) due to unauthorized access to the control system or data transfer system.

Any of the above risks is considered insured only if it is specifically stipulated in the insurance contract.