Compulsory Third Party Liability Insurance for Hazardous Facilities Owners

The facilities operations of which may pose any hazard to third parties include enterprises and/or their workshops, areas, sites, and also, other facilities registrable with the state register in the procedure established by the Government of the Republic of Kazakhstan, which are subject to the compulsory insurance. (Article 5 of Law N580-II).

The object of Compulsory Third Party Liability Insurance for Hazardous Facilities Owners is the property interest of the owner of such facility that may pose any hazard to third parties, related to its liability under the civil laws of the Republic of Kazakhstan to reimburse for damage caused to life, health and/or property of third parties as a result of an emergency at a facility which operation may pose hazard of damage to third parties.

The sum insured is established by a mutual agreement of the Insured and Insurer, but not less than a minimum sum insured as set forth by the Law:

The insurance premium means the size of insurance premium under a Compulsory Third Party Liability Insurance Agreement which is established by a mutual agreement of the parties within 0.72 to 2.02 % of the insurance premium size depending on the class of the facility which may pose any hazard to third parties.

The size of insurance rate for a certain facility is established depending on the production output, production characteristics, volume of hazardous substances available on the facility, existing accident rate, location and other factors affecting the size and probability of potential damage.