Property insurance
Voluntary third party liability insurance
of legal advisers and lawyers
Object of insurance
The property interests of the Insured (insured person) shall be the insurance object associated with its responsibility in the manner prescribed by the legislation of the Republic of Kazakhstan to reimburse loss caused to the third parties that in accordance with the agreement are provided with legal assistance as a result of their professional activities. An individual or a legal entity-consumer of legal services shall be the Beneficiary, with whom the Insured has entered into an agreement (contract) for provision of services and in whose favor an insurance agreement has been entered into.
Under insurance agreement entered into in accordance with this Program, the Insured shall undertake to pay insurance premiums in the amount, procedure and deadlines prescribed by the agreement, and the Insurer upon occurrence of an insurance event shall undertake to pay an insurance payment to the Beneficiary within the limit of an insured amount determined by the agreement.
Any unlawful interests of the Insured shall not be subject to insurance.
INSURED AMOUNT, FRANCHISE
The insured amount under the insurance agreement shall be determined by its conditions and shall be at least a thousand-fold monthly calculation index for the insured persons operating within the area of a city of republican status, the capital, for other insured persons — at least five hundred-fold monthly calculation index determined by the republican financial law for corresponding financial year on the date of entering into of insurance agreement. In such a case, a limit of the insurer’s liability per one specific insurance event may be determined but not more than 20.0% of the insured amount.
The insurance agreement shall determine an unconditional franchise in the amount of at least 10.0% (ten percent) of total insured amount.
INSURANCE PREMIUM
The amount of insurance premium payable under the insurance agreement shall be determined as agreed by the parties and shall be calculated in accordance with insurance tariffs that determine the rate of insurance premium charged from total insured amount.
The insurance tariff for voluntary insurance of professional liability of legal advisers or lawyers ranges from 1.50% to 2.00% of the insured amount.
The insurance premium shall be paid as a lump sum within 5 (five) business days from the date of signing the insurance agreement by the parties or their authorized representatives by transferring money to the insurer’s bank account or in cash to the insurer’s cash desk.
INSURANCE EVENT AND INSURANCE PAYMENT
The occurrence of the Insured’s third party liability for reimbursement of loss caused to the property interests of the third parties shall be the insurance event under this Program that are provided with legal assistance in accordance with the agreement as a result of professional mistakes made by the insured person in provision of legal or lawyer assistance.
An event shall be deemed as the insurance event provided that:
- an event has occurred during validity period of the insurance agreement;
- it has occurred within the area specified in the insurance agreement;
- there is a direct causal relationship between causing loss and an event under which the loss is reimbursed in accordance with the insurance agreement;
- there are no elements of gross negligence in the Insured’s actions. Gross negligence shall mean a violation by the Insured of requirements of job descriptions, rules and other regulations determining the procedure and conditions for carrying out legal activities as well as the activities of an employee in the absence of confirmed professional knowledge and experience as well as if necessary of appropriate admission;
- the Insured satisfied the Beneficiary’s claim for reimbursement of property damage on a voluntary basis, with preliminary written consent of the Insurer;
- the court decision has entered into force.
Professional mistakes shall mean:
- non-compliance with procedural deadlines;
- execution of documents in violation of execution requirements prescribed by the legislation of the Republic of Kazakhstan;
- failure to notify a person that receives legal or lawyer assistance in accordance with the agreement of consequences of legal actions resulting to the loss;
- loss or destruction of documents received by the Insured (Insured Person) from a customer for provision of legal and lawyer assistance;
- unlawful disclosure of information constituting a legal or lawyer secret.