Property insurance
Title insurance
Insurance subject matter
The insurance under these Rules shall cover the property interests of an insured related to a risk of loss of property as a result of loss of ownership right thereon in connection with reclamation from possession as well as invalidation by a court of a sale and purchase transaction, gift deed, contract of exchange, last will, privatization agreement.
Insurance shall not cover:
- money (including foreign currency) and securities;
- manuscripts, plans, drawings, designs, templates, models and other documents, technical data carriers of computer systems, slides, photographs, audio and video recordings;
- precious metals and stones;
- works of art, paintings, postage stamps, antique facilities etc., their collections;
- religious items;
- pets, birds, indoor plants, fur-bearing animals, other animals;
- spare parts and accessories for vehicles;
- computer data banks.
Insurance event
The risk of loss (termination) of ownership right to property shall be insured under Insurance Agreement on the basis of an enforceable judicial order issued by a court of the Republic of Kazakhstan.
Loss of ownership right to property specified in Insurance Agreement, according to these Rules, shall be an insurance event in case of simultaneous fulfillment of the following conditions:
- Insured was a bona fide purchaser of property;
- loss (termination) of ownership rights to property occurred on the basis of an enforceable judicial order issued by a court of the Republic of Kazakhstan;
- judicial order was issued by a court of the Republic of Kazakhstan not on the basis of insured’s recognition of plaintiff’s claims, conclusion of a mediation (amicable) agreement or other procedures for peaceful settlement of a dispute;
- loss (termination) of insured’s ownership rights and transfer of ownership right to property to a new owner have been registered by the governmental authorities or other obligatory procedures (actual actions) have been conducted provided for by the regulatory statutory instruments of the Republic of Kazakhstan, which confirm this fact.
A specific list of insurance risks (insurance events) shall be specified in Insurance Agreement by mutual consent of the Parties.
Insurance amount and insurance premium
Insurance amount shall be specified in Insurance Agreement and may be determined in the following amount:
- insurance value of property on the date of conclusion of Insurance Agreement;
- it is less than insurance value of property on the date of conclusion of Insurance Agreement.
Insurance amount shall not exceed the insurance value (actual value) of property which is insured at the place of its location as of the date of conclusion of Insurance Agreement. If an insurance amount under Insurance Agreement is less than insurance value of property as of the date of conclusion of Insurance Agreement, then the amount of insurance payment under occurred insurance event shall be determined in the same proportion as the insurance amount relates to insurance value of property. Compliance of an insurance amount with insurance value of property shall be determined for the whole Insurance Agreement or for a separate property.
Tariff rates under voluntary title insurance
No. | Risks | Percentage ratio | Minimum risk-adjusted tariff | Maximum risk-adjusted tariff | Basis risk-adjusted tariff |
1 | commitment of a transaction by a minor who has reached the age of 14 (fourteen) without consent of his/her parents (adoptive parents) or guardians, except for transactions that he/she is entitled by law to conclude independently | 15.0% | 0,003 | 1,03 | 0,02 |
2 | commitment of a transaction by a person recognized as incapable due to mental illness or dementia | 15.0% | 0,003 | 1,03 | 0,02 |
3 | commitment of a transaction by a person restricted by a court in legal capacity | 15.0% | 0,003 | 1,03 | 0,02 |
4 | commitment of a transaction by a person with insufficient authority to conclude a transaction | 15.0% | 0,003 | 1,03 | 0,02 |
5 | sale of property by power of attorney, after death of a person who issued the power of attorney, after the person has been declared incapable, partially incapacitated or missing | 15.0% | 0,003 | 1,03 | 0,02 |
6 | commitment of a transaction by a legal entity in contradiction with purposes of activity, limited by the legislation of the Republic of Kazakhstan or constituent documents, or in violation of statutory competence of its body | 15.0% | 0,003 | 1,03 | 0,02 |
7 | on other grounds of loss of ownership rights to property provided for by the applicable legislation of the Republic of Kazakhstan | 10.0% | 0,002 | 0,68 | 0,01 |
Total | Total package | 100.0% | 0,023 | 6,85 | 0,12 |