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Questions regarding compulsory insurance of employees against accidents (CIEA)

Questions regarding compulsory insurance of employees against accidents (CIEA)

What is the mechanism of compulsory insurance of employees against accidents during performance of their labor (official) duties?

Compulsory insurance of employees against accidents is provided on the basis of the agreement entered into between the insurant and the insurer according to the laws of the Republic of Kazakhstan in favor of the employee, whose life and health may be harmed during performance of his labor (official) duties. The agreement of compulsory insurance of employees against accidents shall be entered into in writing on the basis of the insurant’s application.

The agreement of compulsory insurance of employees against accidents shall be entered into for a period of twelve months from the date of its coming into force. If the employer performs activities for a period of less than twelve months, the agreement shall be entered into for the term of this activity.

Note: The agreement of compulsory insurance of employees against accidents must be entered into only with an insurer, who has a license for insurance activities in the class of annuity insurance and this type of compulsory insurance.

Which companies are obliged to insure their employees against occupational accidents?

This type of insurance is compulsory type of insurance for all employers, except for government agencies.

Evasion of entering into the compulsory insurance agreement by a person obligated in accordance with the legislative act of the Republic of Kazakhstan on compulsory insurance to enter into a compulsory insurance agreement, in accordance with clause 175 of the Code of the Republic of Kazakhstan on Administrative Offenses, entails a fine:

• for individuals - in the amount of 20 MCI

• for officials, individual entrepreneurs, private notaries, private bailiffs - in the amount of 100 MCI,

• for legal entities, which are subjects of small or medium-sized business - in the amount of 400 MCI,

• for legal entities, which are subjects of large business - in the amount of 1,000 MCI.

What is the amount of the agreement of compulsory insurance of employees against accidents during performance of their labor (official) duties? Can it be changed?

The insurance amount is determined by the agreement of compulsory insurance of employees against accidents, but should not be less than the annual wage fund of all employees at the time of signing of the agreement of compulsory insurance of employees against accidents.

The insured amount may be changed in the event of changes in the annual wage fund for employees.

What is the amount of the insurance premium under the agreement of compulsory insurance of employees against accidents during performance of their labor (official) duties?

The insurance premium under the employee's insurance agreement against accidents is determined by agreement of the parties on the basis of the insurance tariff established by clause 2 of Article 17 of the Act multiplied by the insured amount. The received sums are subject to summation.

If the company performs several activities related to different classes of occupational risk, how is the premium calculated in this case?

In the case when the policyholder carries out several types of economic activity, then it is subject to classification to the occupational risk class corresponding to the main type of its activity.

In the event that the policyholder carries out several types of economic activities, evenly distributed in the total volume of production, it is subject to refer to that type of economic activity, which corresponds to a higher class of occupational risk.

How is the premium calculated in cases where the company has branches that are different from the activities of the parent company?

 In the event that the policyholder has a branch (branches) that conduct (perform) an activity different from the insured, then it must be attributed to that type of economic activity, which corresponds to its class of occupational risk.

At the same time, the branch (s) should (should) have confirmation of the economic activity carried out by them (them).

Is it necessary to renew the insurance agreement in case of an increase in the number of employees or a change in the wage fund?

If during the term of the insurance agreement the payroll fund and (or) the number of employees are changed, by agreement of the parties, the insurance agreement is amended (in terms of the amount of the insurance sum and insurance premium) by concluding an additional agreement for the period of the main agreement.

The insurance premium is calculated on the basis of the amount of the change in the payroll and the period remaining until the end of the main agreement. The insurance rate is calculated in proportion to the remaining period of insurance against the tariff for which the insurance agreement was concluded (the main agreement).

What is an insured event?

The insured event in this type of insurance is an accident occurred with an employee during performance of his labor (service) duties, which resulted in an industrial injury, sudden deterioration of health or poisoning of the employee, leading to establishment of a degree of loss of professional capacity to work, occupational disease or death.

What is the amount of the insurance payment if the insured event occurred?

Insurance indemnity due as compensation for damage associated with loss of earnings (income) by an employee in connection with the establishment of a degree of loss of professional capacity for work for less than one year is effected by the Insurer independently in the amount determined in accordance with the Civil Code of the Republic of Kazakhstan.

The insurance payment due as compensation for damage associated with the loss of earnings (income) by the employee in connection with the establishment of the degree of loss of professional capacity for work for a period of one year or more is effected in the form of annuity payments in favor of the employee for a period equal to the term of establishment or renewal (re-examination) of the degree of loss of the professional capacity of the employee in accordance with the annuity agreement concluded with the Insured.

 Insurance compensation for compensation for damage associated with the death of an employee in the event of an accident, and also because of the deterioration of his health as a result of an accident, is carried out in the form of annuity payments in favor of persons who have the right to compensation for harm under the laws of the Republic of Kazakhstan, established by the Civil Code of the Republic of Kazakhstan.

Reimbursement of additional expenses caused by damage to the health of the employee in the event that he determines the degree of loss of professional ability to work is made by the insurer on the basis of documents confirming these expenses submitted by the employee or the person who incurred these expenses. At the same time reimbursement by the insurer is not subject to expenses that are included in the guaranteed volume of free medical assistance in accordance with the laws of the Republic of Kazakhstan in the field of health care.

The aggregate amount of insurance benefits for reimbursement of additional expenses caused by damage to health cannot exceed the following amounts (in monthly calculation indicators established for the relevant fiscal year by the law on the republican budget):

• upon establishing of the degree of loss of professional capacity to work from thirty to fifty-nine percent, 500;

• upon establishing of the degree of loss of professional capacity to work from thirty to fifty-nine percent from sixty to eighty-nine percent, inclusively, 750;

• upon establishing of the degree of loss of professional capacity to work from ninety to one hundred percent inclusively, 1,000.

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