Compulsory carrier liability insurance to passengers

The following types of transport are accepted for insurance: railway, sea, inland waterway, air, road and urban electric transport.

An insured event is an incident that results in harm to the life, health and (or) property of passengers occurring during their carriage.

The insurance payment is established for each insured event and depends on the amount of harm caused. The amount of compensation is calculated in accordance with the Law and depends on the type of transport and on the severity of the harm caused to the passenger (death, degree of disability or inpatient treatment without the establishment of disability).

The sum insured (the liability limit under the contract) is established in accordance with the legislation and takes into account the type of transport and the number of passengers carried.

The insurance rate is calculated in accordance with the Law* and depends on the type of vehicle:

  • Road transport - from 3 to 23 MCI;
  • Air transport - from 135 to 3,820 MCI;
  • Sea transport - from 50 to 530 MCI;
  • Inland waterway transport - from 17.5 to 160 MCI;
  • Rail transport - 0.2% of the cost of carriage of passengers and their property.

*Insurance of the carrier’s liability to passengers is carried out in accordance with the Civil Code of the Republic of Kazakhstan and on the basis of the Law of the Republic of Kazakhstan “On Compulsory Insurance of the Civil Liability of the Carrier to Passengers” of 1 July 2003 No. 444-II.

Who needs the policy

The contract must be concluded by organisations and entrepreneurs that carry passengers by the listed types of transport: bus and minibus carriers, airlines, shipping companies, railway carriers, urban electric transport enterprises. The policy must be in force before carriage begins and for as long as the transport is used to carry people.

What the policy covers and does not cover

The carrier liability policy covers harm caused to the life, health and property of passengers during carriage. It does not replace other types of insurance:

  • harm to third parties on the road (pedestrians, other drivers) is covered by MTPL;
  • damage to the vehicle itself is covered by CASCO or property insurance;
  • injuries to drivers, flight attendants and other staff are covered by OSRNS;
  • cargo and baggage carried under a separate contract of carriage of goods are covered by cargo insurance or the cargo carrier’s liability insurance.

What the cost depends on

The cost of the policy is determined by the type of transport, its passenger capacity and the number of units in the fleet, and for rail transport – by the cost of carriage. The rates are set by law within the ranges stated above, so prices at different insurers usually differ very little. It is better to compare the quality of service: claim settlement speed, handling of injured persons, and branches in the regions the routes pass through.

What to check when concluding the contract

  • whether all vehicles are included in the contract and their details are stated correctly;
  • whether the stated passenger capacity matches the actual one;
  • the term of the contract and the procedure for renewing it without a gap;
  • the procedure for notifying the insurer of an incident and the list of documents for payment;
  • contact details for injured persons – passengers must know where to apply.

What to do when an insured event occurs

For the carrier

  1. Provide assistance to the injured and call the emergency services.
  2. Record the circumstances of the incident and the passengers’ details.
  3. Notify the insurer within the period specified in the contract.
  4. Hand over to the insurer the documents on the carriage and the incident.

For the passenger

  1. Keep the ticket or other travel document.
  2. Obtain medical documents on the nature of the injuries and the treatment.
  3. Find out from the carrier the name of the insurer and submit a claim to it.
  4. Attach documents confirming harm to health or property.

Typical mistakes made by carriers

  • new buses or vessels start operating before they are included in the contract;
  • the contract expires and a new one is concluded after a gap of several days;
  • the contract states a lower passenger capacity than the actual one;
  • the insurer is notified of an incident late, which delays settlement.

For more on protecting a transport business, see the liability insurance section; you can estimate the approximate cost in the calculator. To select an insurer for your fleet and routes, get a consultation from a broker.