Motor transport

Compulsory Third Party Liability (TPL) insurance for motor vehicles owners

Insurance is implemented in accordance with the Law of the Republic of Kazakhstan of July 1, 2003 № 446-II “On Compulsory Third Party Liability Insurance for Motor Vehicles Owners”.

Purpose of the compulsory third party liability insurance for motor vehicles owners is coverage provision for property interests of the third parties whose lives, health states and (or) property were damaged as a result of motor vehicle exploitation, via payment of indemnity.

Insurance object is the property interest of Assured, connected with his/her obligation, stated by the Civil legislation of the Republic of Kazakhstan, to indemnify damage to the life, health and/or property of third parties as a result of motor vehicle service as a source of increased danger.

Insurance event is a fact of Insured’s third party liability occurrence on reimbursement of damage to life, health and/or property of persons, acknowledged Injureds, as a result of Assured’s service of motor vehicle.

Territory of insurance — Republic of Kazakhstan.

Insurance premium rate is defined by the Law On Compulsory Insurance and depends on motor vehicle engine volume, place of motor vehicle registration, and the sum of Monthly Calculation Index (MCI) at the beginning of the year.
Under the compulsory third party liability insurance for private owner of 2 and more motor vehicles (complex insurance), insurance premium is paid on the basis of motor vehicle containing maximal engine volume, in this case all cars are registered in a single policy. The discount of 50% is provided to the 1 and 2 groups invalids, WW II veterans and coequal to them persons.

Indemnity is executed by the Insurer during the period of seven working days after provision of all required documents, confirming the guilt of Insured and estimation of the amount of damage. The size of indemnity is estimated in MCI.

Maximum limit of Insurer’s liability (sum insured) per one occurrence is set (in month calculation indexes):

• For the damage to life or health of each injured and leading to:
  • death — 1000;
  • determination of disability:
    I group — 800,
    II group — 600,
    III group — 500;
    “child-invalid” — 500
  • injury, trauma or another damage to health without disability determination — in the amount of actual expenses for out-patient and (or) in-patient treatment, but no more than 300. In this case indemnity amount per each day of in-patient treatment shall be no less than 2 MCI;
• For damage to the property of one injured — in incurred damage extent, but no more than 600;
• For damage to the property of two and more injureds — in incurred damage extent, but in sum no more than 600 to all injureds. At the same time total indemnity amount to all injureds can not exceed 2000. In case of loss excess over maximum limit of Insurer’s liability indemnity for each injured is paid pro rata to his/her property loss extent.

Extent of the damage caused to the life and health of Injured is determined on the basis of the documents, issued by appropriate medical organizations.

Extent of the damage caused to the property is on the basis of repair cost of property less amortization charged before insurance event occurrence.

Repair cost of damaged property is calculated on the basis of market value acting on the date of insurance event occurrence.