Compulsory civil liability insurance (CCLI) of dangerous installation owners towards third parties

Compulsory civil liability insurance (CCLI) of dangerous installation owners towards third parties


COMPULSORY CIVIL LIABILITY INSURANCE FOR OWNERS OF INSTALLATIONS, THE ACTIVITY OF WHICH IS ASSOCIATED WITH HAZARD OF CAUSING HARM TO THIRD PARTIES 

Insurance is performed in accordance with the Law of the Republic of Kazakhstan №580 –II ЗРК «On compulsory civil liability insurance for owners of installations, the activity of which is associated with hazard of causing harm to third parties» №580 –II ЗРК of July 07, 2004.
Object of insurance  - the Policy-holder’s (Insured’s) proprietary interest, associated with his obligation established by the civil legislation of the Republic of Kazakhstan to compensate for the injury caused to the life, health, and (or) property of third parties by the hazardous production factor.
The objects, the activity of which is associated with a danger to cause harm to third parties, are those that are subject to declaration in accordance with the Law of the Republic of Kazakhstan «Industrial safety at hazardous production facilities».
Insurance agreement shall be concluded in a written form on the basis of the Insured’s application for a period of not over 12 months by issuing an insurance policy.
The insurance agreement shall not cease to be effective upon occurrence of the first event insured.
Insured value and insurance premium:
The insured value according to the insurance agreement equals in terms of MCI, established by the republican budget law for the corresponding financial year:
1) 600 thousand – if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds four thousand persons;
2) 350 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds two thousand persons, but does not exceed four thousand persons;
3) 225 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds one-and-a-half thousand persons, but does not exceed two thousand persons;
4) 115 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds seven hundred and fifty persons, but does not exceed one-and-a-half thousand persons;
5) 50 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds three hundred persons, but does not exceed seven hundred and fifty persons;
6) 30 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds one hundred and fifty persons, but does not exceed three hundred persons;
7) 12 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds seventy-five persons, but does not exceed one hundred and fifty persons;
8) 5 thousand - if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors exceeds ten persons, but does not exceed seventy-five persons;
9) 1 thousand – for other declarable hazardous productions, if the maximum possible number of persons affected as a result of harmful effects of hazardous production factors does not exceed ten persons. 
The amount of insurance premium according to the insurance agreement shall be established upon agreement between the parties within the range of 0,72 to 2,02 percent of the insured value depending on the hazard level of facilities, the activity of which is associated with a danger of causing harm to third parties.
Insurance benefit for the harm caused to the life and health of each third party shall be paid in the following amounts:
1) death - 1 000 MCI;
2) disability:
I group – 800 MCI;
II group – 600 MCI;
III group – 500 MCI;
a disabled child – 500 MCI;
3) in case of severe injury, trauma, or other injury to health without establishment of disability – in the amount of actual expenses on out-patient and(or) in-patient care, but not over 300 MCI. In this case, the amount of insurance benefit for each day of in-patient care shall equal at least 2 MCI.

The value of harm caused at property damage shall be determined on the basis of calculated cost of its recovery with due consideration of wear and tear that had been present prior to the event insured.

The insurance benefit shall be paid by the Insurer within 30 days upon receipt of all the necessary documents.