LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 7, 2004 No. 580-II

About compulsory insurance of civil responsibility of owners of objects whose activities are connected with danger of damnification to the third parties

This Law governs the public relations arising in the field of compulsory insurance of civil responsibility of owners of objects whose activities are connected with danger of damnification to the third parties and establishes legal, economic and organizational basis of its carrying out.

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) accident - destruction of the buildings, constructions and (or) technical devices used on hazardous production facility, uncontrollable explosion and (or) emission of dangerous substances;

2) incident - the refusal or damage of the technical devices used on hazardous production facility, variation from the parameters ensuring safety of conducting engineering procedure, which did not lead to accident;

3) dangerous production factor - the physical phenomenon arising in case of accidents, incidents on hazardous production facilities, doing harm to life, health and (or) property of the third parties;

4) the owner of object which activities are connected with danger of damnification to the third parties, - the physical and (or) legal entity owning object which activities are connected with danger of damnification to the third parties, on the property right, the right of economic maintaining or the right of operational management or on any other legal cause;

5) the civil owner's liability of object which activities are connected with danger of damnification to the third parties, - the obligation of physical and (or) legal entities established by the civil legislation of the Republic of Kazakhstan to compensate the harm done to life, health and (or) property of the third parties by dangerous production factor;

6) the beneficiary - person who according to this Law is receiver of insurance payment;

7) insured event - event with which approach the agreement of compulsory liability insurance of owners of objects whose activities are connected with danger of damnification to the third parties, provides implementation of insurance payment;

7-1) insurance ombudsman - the independent physical person in the activities performing settlement of disagreements between participants of the insurance market according to the Law of the Republic of Kazakhstan "About insurance activity";

8) insurance sum - amount of money for which object of compulsory insurance is insured and which represents limiting scope of responsibility of the insurer in case of loss occurrence;

9) insurance premium - amount of money which the insurer shall pay to the insurer for adoption by the last of obligations to make insurance payment to the insurer (beneficiary) in the amount of, determined by the agreement of compulsory liability insurance of owners of objects;

10) insurance payment - the amount of money paid by the insurer to the insurer (beneficiary) within insurance sum in case of loss occurrence;

11) the insurer - the legal entity registered as insurance company and having the license for the right of implementation of insurance activity obliged to make in case of loss occurrence insurance payment to the insurer or the other person (beneficiary) within the amount (insurance sum) determined by the agreement;

12) insured - person concerning whom insurance is performed;

13) the insurer - person who signed the agreement of compulsory insurance of the civil owner's liability of object which activities are connected with danger of damnification to the third parties with the insurer. If other is not provided by the insurance contract, the insurer at the same time is insured;