Compulsory insurance of the motorist or motor vehicle

Compulsory types of insurance must be arranged only at the branches of insurance companies or on the insurance company’s website.

The correct name of this type of insurance is compulsory insurance of the civil liability of the motor vehicle owner, or compulsory motorist insurance (MTPL for short). In Kazakhstan this type of insurance is carried out on the basis of the Law of the Republic of Kazakhstan No. 446-II of 1 July 2003 “On Compulsory Insurance of the Civil Liability of Vehicle Owners”. We recommend checking the current version of the law in the “Adilet” information system (adilet.zan.kz).

Why liability is insured, not the car

Many people are sure that it is the car that is being insured, and it would be logical to call this type “compulsory motor insurance”. But this type of insurance does not insure the car; it insures specifically the motorist’s liability to third parties.

The insured event under MTPL

An insured event is the causing of harm to the property and/or health of a third party in a road traffic accident. That is, the payment will be made where the insured person is at fault.

Why a compulsory insurance policy is needed

For many motorists the answer is obvious – “for the traffic police”. This is a relatively correct answer: if a motorist has no compulsory insurance policy, a police officer will impose a fine, and the car may also be placed in an impound lot until the violation is remedied. But the policy is needed for more than this: it guarantees compensation of the property damage suffered by third parties as a result of an accident caused by the motorist. The policy does not insure your car, but guarantees compensation of damage to the injured party if you are at fault. Without a policy, the party at fault in an accident would compensate this damage from its own funds.

What compensation will be paid to the injured party

  • for harm caused to one car – 600 MCI;
  • for harm caused to the life or health of each injured person – 1,000 MCI.

Liability limits can be increased by concluding a voluntary motorist liability insurance contract. The limits are set by law and may be revised, so before arranging a policy check them against the current version of the law.

Direct settlement

This amendment to the law allows an insured motorist, in a road traffic accident, to apply directly to his or her own insurance company even if he or she was not at fault. But, as always, there are conditions:

  1. both participants in the accident must hold valid compulsory insurance policies;
  2. both motorists were sober at the time of the accident and promptly notified their insurance company.

What the cost of the policy depends on

For individuals the insurance premium depends on:

  • the place of registration of the vehicle;
  • the type of vehicle;
  • the client’s age and driving experience;
  • the vehicle’s age;
  • the presence or absence of insured events (bonus-malus).

For legal entities the insurance premium depends on:

  • the place of registration of the vehicle;
  • the type of vehicle;
  • the date of manufacture of the car.

Compulsory motor insurance plays an exceptional role in the social protection of the population when an insured event occurs, since this type applies where the insured person is at fault and is aimed at compensating the damage to the injured party.

Compulsory motor insurance can be purchased from any insurance company that holds a licence in the general insurance sector in Kazakhstan. It is also possible to order a compulsory motor insurance policy electronically on our website and to make a preliminary cost calculation using the electronic MTPL calculator.

How long the policy is valid

Insurance cover is valid for 12 months regardless of insured events, that is, if an accident occurred and a payment was made under the insurance policy, the policy remains in force.

Types of policies

  • Comprehensive – several motor vehicles can be entered in the policy for one person.
  • Standard – several persons permitted to drive can be attached to one motor vehicle.

The comprehensive option is convenient if one driver uses several cars. The standard one suits a family or a company in which different people drive the same car.

What MTPL does not cover

  • damage to your own car if the accident was your fault;
  • damage above the established limits – the injured party is entitled to claim the difference directly from the party at fault;
  • theft, fire, natural disasters and other risks not related to liability to third parties.

Voluntary CASCO insurance is designed to protect your own car – see the car insurance section for more on the protection options.

What to do in a road accident

  1. Stop, switch on the hazard lights and place the warning triangle.
  2. If there are injured persons, call an ambulance and the police.
  3. Record the circumstances: photos and video of the scene, the damage and the position of the cars; write down the details of the other party and of their policy.
  4. Formalise the incident in the manner provided by the traffic rules.
  5. Promptly notify your insurance company – the notification deadlines are stated in the law and in the contract.
  6. Collect the documents the insurer requests and submit a claim for payment.

Typical mistakes made by motorists

  • Believing that an MTPL policy will pay for the repair of the at-fault driver’s own car.
  • Allowing a driver who is not named in a standard policy to drive.
  • Missing the deadline for notifying the insurer of an accident.
  • Not reissuing the policy when the place of registration, the drivers or the car change.

We recommend reading similar material: Compulsory insurance: questions and answers, as well as Motor CASCO.

If you need to choose a policy or increase your liability limits with a voluntary contract, you can get a consultation from a broker.