Compulsory third party liability of audit organizations

The insurance is carried out on a basis of the Law of the Republic of Kazakhstan of 13 June 2003 No 440-II “On Compulsory Third Party Liability Insurance of Audit Organizations”.

The purpose of compulsory TPL insurance of audit organizations is providing of protection of property interests for audited entities which were damaged during audit carried out by audit organization by means of indemnity payment.

 

Insurance is applied for third party liability of audit organizations which received the license for audit operations according to the order established by the legislation of the Republic of Kazakhstan.

 

Insurance event is a fact of occurrence of third party liability of Insured to reimburse damages incurred to property interests of audited entities during audit conduction.

 

Sum insured is established according to parties agreement, but not less than 10 000 MCI at the date of agreement conclusion with audit organization.

 

Annual insurance rate should not exceed 4,5% of sum insured.

 

Period of insurance – 12 months.

 

Amount of insurance indemnity is determined by Insurer on the assumption of amount of audited entity claim or court decision that has entered into force about reimbursement of incurred damage.

 

Moral damage, lost profit and forfeit payment are not subject to reimbursement.

 

The Insurance Agreement establishes the conditional deductible which should not exceed 5% of sum insured.