Article 4. Competence of the authorized body and the National Bank of the Republic of Kazakhstan The Law on the Insurance Benefit Guarantee Fund

Home / RLA / Article 4. Competence of the authorized body and the National Bank of the Republic of Kazakhstan The Law on the Insurance Benefit Guarantee Fund

1. Authorized body:

IZPI's note! Subparagraph 1) is provided for in the wording of the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

1) adopt regulatory legal acts binding on the Fund in the field of regulating the Fund's activities in accordance with the purpose and objectives provided for in paragraphs 1 and 2 of Article 2-1 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is defined in the regulation on the authorized body.;

2) approves the participation agreement, the terms of which are standard for all participating insurance companies;

3) establishes the procedure for investing assets and the list of financial instruments allowed to be acquired at the expense of the Fund's own assets, funds from insurance benefit guarantee reserves and funds from the damage compensation reserve.;

4) excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (effective from 01.01.2020); 5) excluded by the Law of the Republic of Kazakhstan dated 04/27/2015 No. 311-V (effective after ten calendar days after the date of its first official publication); 6) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective effective sixty calendar days after the date of its first official publication).

6-1) approves the methodology for calculating the rate of mandatory, additional contributions and contingent liabilities, the procedure and deadlines for payment of mandatory, initial one-time, additional and extraordinary contributions, the procedure for the formation and accounting of contingent liabilities by insurance organizations participating in the Fund;

6-2) establishes the procedure for evaluating the financial assets of the Fund, formed at the expense of the Fund's own assets, funds from reserves for guaranteeing insurance payments in the "general insurance" and "life insurance" sectors, and funds from the damage compensation reserve;

7) coordinates the rates of mandatory and additional contributions, as well as conditional obligations of participating insurance organizations for each calendar year, payable by participating insurance organizations to the Fund, established by the Board of Directors of the Fund;

8) issues consent for the appointment (election) of the Fund's senior staff, and also establishes the procedure for issuing consent, including criteria for the absence of an impeccable business reputation, and a list of documents required to obtain consent.;

9) applies supervisory response measures to the Fund and participating insurance organizations in accordance with the procedure and on the grounds provided for by the legislation of the Republic of Kazakhstan on insurance and insurance activities;

10 approves the Foundation's charter, as well as amendments and (or) additions to it.;

10-1) conducts an audit of the Fund's activities;

10-2) coordinates the Fund's strategy, the Fund's risk management policy, the Fund's internal audit policy, as well as amendments and (or) additions to them.;

10-3) develops and approves the rules for collecting commission fees by the Fund;

10-4) approves the internal documents of the Fund approved by the Board of Directors of the Fund, as well as amendments and (or) additions to them on the following issues:

maintaining internal records of the Fund's own assets, funds of reserves for guaranteeing insurance payments in the "general insurance" and "life insurance" industries, and funds of the damage compensation reserve;

performing the functions provided for in subitems 1) and 1-1) of paragraph 2 of Article 8 of this Law at the expense of the Fund's own assets in case of insufficient reserves for guaranteeing insurance payments in the "general insurance" and "life insurance" sectors;

replenishment of the Fund's own assets used to carry out the functions provided for in subparagraphs 1) and 1-1) of paragraph 2 of Article 8 of this Law due to insufficient reserves for guaranteeing insurance payments in the general insurance and life insurance industries;

formation and work of the investment committee, the advisory committee, their main tasks and competencies;

10-5) coordinates the accounting policy of the Fund;

10-6) establishes the requirements for the risk management and internal control system in the Fund;

11) exercise other powers provided for by this Law and the legislation of the Republic of Kazakhstan.

1-1. The National Bank of the Republic of Kazakhstan, in coordination with the authorized body, determines the list, forms of financial and other reports, deadlines and procedure for their submission by the Fund to the National Bank of the Republic of Kazakhstan. IZPI's note! Paragraph 1-1 is provided to be deleted by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

2. The authorized body has the right to veto decisions of the General Meeting of Shareholders and the Board of Directors of the Fund on the following issues:

1) increasing the number of declared shares of the Fund;

2) the Fund's participation in the creation and activities of other legal entities by transferring part or several parts of assets amounting to ten percent or more of all assets owned by the Fund;

3) increasing the Fund's liabilities by an amount of ten percent or more of the Fund's equity;

4) the Fund's repurchase of its outstanding shares and the price of their repurchase;

5) the conclusion of major transactions and transactions in which the Fund has an interest.

2-1. A representative of the authorized body may attend meetings of the general meeting of shareholders of the Fund without the right to participate in voting. A representative of the authorized body present at a meeting of the general meeting of shareholders of the Fund shall have the right to veto decisions of the general meeting of shareholders of the Fund on issues specified in paragraph 2 of this article.

3. Decisions taken by the general meeting of shareholders and the Board of Directors of the Fund are subject to coordination with the authorized body on issues in respect of which paragraph 2 of this Article establishes the right of veto, in accordance with the procedure and time limits provided for by the regulatory legal act of the authorized body.

4. Failure by the Fund to comply with the requirements of paragraphs 2 and 3 of this Article entails the recognition of these transactions as invalid.

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

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases