Article 10-1. Support for the development of insurance in the agro-industrial complex The Law on State Regulation of the Development of the Agro-industrial Complex and Rural Areas

Home / RLA / Article 10-1. Support for the development of insurance in the agro-industrial complex The Law on State Regulation of the Development of the Agro-industrial Complex and Rural Areas

1. State support for the development of insurance in the agro-industrial complex is provided by subsidizing insurance premiums.

2. Insurance premiums under insurance contracts in the agro-industrial complex concluded by insurance organizations, branches of insurance organizations that are non–residents of the Republic of Kazakhstan (hereinafter referred to as insurers) are subject to subsidization:

1) within the framework of insurance products approved by the operator in the field of insurance in the agro-industrial complex;

2) through the insurance information system.

3. To subsidize insurance premiums and pay for the operator's services in the field of insurance in the agro-industrial complex, the authorized body in the field of development of the agro-industrial complex is allocated budgetary funds determined by the law on the republican budget for the relevant financial year.

The funds provided for payment for the services of the operator in the field of insurance in the agro-industrial complex may be transferred to the current account of the operator in the field of insurance in the agro-industrial complex in a second-tier bank in accordance with an agreement concluded between the authorized body in the field of development of the agro-industrial complex and the operator in the field of insurance in the agro-industrial complex.

4. A current account is opened with the National Bank of the Republic of Kazakhstan (hereinafter referred to as the National Bank) for the operator in the field of insurance in the agro–industrial complex to manage funds transferred by the authorized body in the field of development of the agro-industrial complex on the basis of an agreement concluded between the authorized body in the field of development of the agro-industrial complex and the operator in the field of insurance in the agro-industrial complex.

Temporarily available funds from the current account with the National Bank may be placed on deposits with the National Bank and in government securities.

The revenue part of the current account with the National Bank is formed at the expense of budgetary funds transferred by the authorized body in the field of development of the agro-industrial complex on the basis of an agreement, and income from the placement of temporarily available funds on deposits with the National Bank and government securities.

The expenditure part of the current account with the National Bank includes the amounts deposited with the National Bank and government securities, expenses for reimbursement of part of the insurance premium.

The remaining funds in the current account with the National Bank at the end of the financial year are not subject to return to the authorized body for the development of the agro-industrial complex and, accordingly, to the state budget, but are spent on subsidizing insurance premiums in the next financial year.

5. The functions of the insurance operator in the agro-industrial complex include:

1) purchase of services for providing access to the insurance information system and its maintenance;

2) administration of the budget allocation process in the form of insurance premium subsidies;

3) development, examination and approval of insurance products subject to subsidization. Insurance products are developed by an insurance operator in the agro-industrial complex or by insurers. Insurance products subject to subsidization are coordinated with the authorized body for regulation, control and supervision of the financial market and financial organizations.;

4) monitoring of the insurance industry in the agro-industrial complex;

5) making proposals to the authorized body in the field of development of the agro-industrial complex on the development of insurance in the agro-industrial complex;

6) organization of the activities of the expert council.

6. Insurance Information system requirements:

1) integration with data from the legal and land cadastre, the unified insurance database, data from central executive bodies in the areas of permits and notifications, registration of individuals and legal entities, accounting and financial reporting, other central and local executive bodies, as well as the non-profit joint-stock company State Corporation Government for Citizens;

2) the possibility of obtaining and processing images of remote sensing of the Earth.

Functionality of the insurance information system:

1) providing a single information resource for the subjects of the agro-industrial complex, which contains complete information on insurance products and insurers providing insurance in the agro-industrial complex;

2) submission of applications by the subjects of the agro-industrial complex for the purchase of an insurance product;

3) conclusion of insurance contracts in the agro-industrial complex between the insurer and the policyholder if a corresponding agreement has been concluded between the owner of the insurance information system and the insurer;

4) creation of a register (data) on concluded insurance contracts in the agro-industrial complex for payment of the subsidized part of the insurance premium;

5) transfer to the unified insurance database of the register (data) on insurance contracts in the agro-industrial complex, concluded in electronic form, in real time;

6) submission by insurers of applications for subsidies for insurance premiums within the framework of insurance contracts concluded in the agro-industrial complex;

7) posting information on the electronic platform about the risks of the subjects of the agro-industrial complex that they wish to insure;

8) exchange of information on insurance issues in the agro-industrial complex.

The Law of the Republic of Kazakhstan dated July 8, 2005 No. 66.

This Law defines the legal, organizational, economic and social foundations for the implementation of state regulation of the development of the agro-industrial complex and rural areas in the Republic of Kazakhstan.

President

Republic of Kazakhstan

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