Article 1. The basic concepts used in this Law Chapter 1. General provisions The Law on the Insurance Benefit Guarantee Fund

Home / RLA / Article 1. The basic concepts used in this Law Chapter 1. General provisions The Law on the Insurance Benefit Guarantee Fund

The following basic concepts are used in this Law:

1) agent bank – a bank or an organization performing certain types of banking operations, providing services for making guarantee payments to creditors on the basis of an agency agreement with the Insurance Benefit Guarantee Fund;

2) victim – a person whose life or health has been harmed as a result of the operation of a vehicle by another person;

3) damage compensation reserve – a reserve formed at the expense of initial one-time contributions, additional contributions and penalties for non-fulfillment or late fulfillment by participating insurance organizations of obligations to pay initial one-time contributions, additional contributions, as well as at the expense of investment income received from investing reserve funds, and reduced by negative investment income received from investing reserve funds, and reduced for expenses related to the investment of the reserve, including the commission of the Insurance Benefit Guarantee Fund, and the amounts of the corresponding taxes and other mandatory payments to the budget. The damage compensation reserve is used exclusively to compensate for damage to the life, health of the victim and (or) funeral expenses in cases provided for by this Law.;

3-1) the Investment Committee is a collegial body of the Insurance Benefit Guarantee Fund that makes investment decisions regarding the Insurance Benefit Guarantee Fund's own assets, insurance benefit guarantee reserves, and damage compensation reserves.;

4) the advisory committee is a collegial consultative and advisory body representing the interests of insurance organizations, branches of insurance organizations that are non–residents of the Republic of Kazakhstan, which are participants in the insurance benefit guarantee system.;

5) creditor – the policyholder (insured, beneficiary) who is entitled to receive a guarantee payment in accordance with this Law, or another person who has compensated the victim (the person entitled to receive an insurance payment) for the damage caused within the scope of the insurer's liability established by the insurance contract and the laws of the Republic of Kazakhstan, and to whom, respectively, the right to receive insurance payments has been transferred;

6) additional contribution – the amount of money paid by an insurance organization, a branch of a non-resident insurance organization of the Republic of Kazakhstan to the Fund for Guaranteeing Insurance Payments for compulsory civil liability insurance of vehicle owners to form a reserve for damage compensation in accordance with this Law;

6-1) a branch of a non-resident insurance organization of the Republic of Kazakhstan that forcibly ceases to operate is a branch of a non–resident insurance organization of the Republic of Kazakhstan, in respect of which the authorized body has decided to revoke the license for the right to carry out insurance activities.;

7) an insurance organization that is being forcibly liquidated is a participating insurance organization in respect of which a court decision on compulsory liquidation has entered into legal force.;

8) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

9) mandatory contributions – the amount of money paid by an insurance organization participating in the Fund for Guaranteeing Insurance Payments for Guaranteed Types of Insurance in accordance with the procedure established by this Law and other regulatory legal acts of the Republic of Kazakhstan;

10) the applicant is a legal entity registered as an insurance organization in accordance with the legislation of the Republic of Kazakhstan, or an insurance organization, a branch of a non–resident insurance organization of the Republic of Kazakhstan that has passed registration and intends to obtain a license and (or) carry out activities for guaranteed types of insurance.;

11) guarantee payment for annuity insurance classes – the amount of money paid by the Insurance Benefit Guarantee Fund to the policyholder (insured, beneficiary) and (or) in favor of the insured as part of the guarantee of annuity insurance in accordance with the procedure and on the terms provided for by this Law;

12) guaranteed types of insurance – types of insurance for which this Law provides for compulsory participation in the Insurance Benefit Guarantee Fund;

13) guarantee payment for compulsory types of insurance – the amount of money paid by the Insurance Benefit Guarantee Fund in accordance with the procedure and on the terms stipulated by this Law to the insured (insured, beneficiary) for insured events under the insurance contract of a forcibly liquidated insurance organization forcibly ceasing operations of a branch of a non-resident insurance organization of the Republic of Kazakhstan, in cases stipulated by Law Republic of Kazakhstan "On Insurance activities";

14) Insurance benefit guarantee system – a set of organizational and legal measures provided for by this Law aimed at protecting the rights and legitimate interests of policyholders (insured, beneficiaries) related to receiving a guarantee payment for compulsory insurance classes of a forcibly liquidated insurance organization, a branch of a non-resident insurance organization of the Republic of Kazakhstan forcibly ceasing operations upon the occurrence of an insured event, as well as a guarantee payment for annuity classes insurance of a liquidated insurance company, forcibly terminating the activities of a branch of a non-resident insurance company of the Republic of Kazakhstan;

15) insurance organization, branch of a non-resident insurance organization of the Republic of Kazakhstan, which are participants in the insurance benefit guarantee system (participating insurance organization), - insurance organization, branch of a non–resident insurance organization of the Republic of Kazakhstan, which have concluded a participation agreement with the Insurance Benefit Guarantee Fund;

16) payments by the Fund for Guaranteeing Insurance Payments for Compensation of Harm to the Life and Health of the victim and (or) funeral expenses – the amount of money paid to the victim, the life and health of whom harm has been caused, and to the persons specified in paragraphs 4 and 5 of Article 17-1 of this Law, in the cases provided for by this Law;

16-1) own assets of the Insurance Benefit Guarantee Fund – assets of the Insurance Benefit Guarantee Fund, with the exception of the insurance benefit guarantee reserve and the damage compensation reserve;

16-2) the equity capital of the Insurance Benefit Guarantee Fund is the amount equal to the difference between the assets of the Insurance Benefit Guarantee Fund and the amount of its liabilities, insurance benefit guarantee reserves, and damage compensation reserves.;

17) insurance benefit guarantee reserve – a reserve formed at the expense of mandatory contributions, penalties for non-fulfillment or late fulfillment of obligations by participating insurance organizations to pay mandatory contributions, money received by the Insurance Benefit Guarantee Fund from an insurance (reinsurance) organization that is being forcibly liquidated, or a branch of an insurance organization that is being forcibly terminated. – a non-resident of the Republic of Kazakhstan in order to meet the requirements of the Insurance Benefit Guarantee Fund, as well as at the expense of investment income received from investing reserve funds, and reduced by negative investment income received from investing reserve funds, and reduced by expenses related to investing the reserve, including the commission of the Insurance Benefit Guarantee Fund, and the amount of related taxes and other mandatory payments to the budget. The insurance benefit guarantee reserve is used only in the cases provided for in paragraph 2-2 of Article 12 of this Law.;

18) insurance contract – an agreement concluded by the policyholder with an insurance company, a branch of a non-resident insurance company of the Republic of Kazakhstan for guaranteed types of insurance;

19) insurance company in liquidation – insurance company

a participating organization, in respect of which the authorized body has decided to revoke the license;

20) emergency contributions – the amount of money additionally paid by the participating insurance organization to the Insurance Benefit Guarantee Fund in the cases provided for by this Law;

21) a standard participation agreement (hereinafter referred to as the participation agreement) is a participation agreement in the insurance benefit guarantee system concluded between the Insurance Benefit Guarantee Fund and the participating insurance organization in accordance with the procedure and on the terms defined by this Law.;

22) contingent liabilities – obligations of the participating insurance organization to the Insurance Benefit Guarantee Fund, formed by it for the payment of emergency contributions.

The Law of the Republic of Kazakhstan dated June 3, 2003 No. 423.

This Law defines the legal status, the procedure for the establishment and operation of the Insurance Benefit Guarantee Fund, as well as the conditions for the participation of insurance organizations, branches of insurance organizations that are non-residents of the Republic of Kazakhstan in the Insurance Benefit Guarantee Fund and the principles of ensuring control over its activities.

President

Republic of Kazakhstan

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