Compulsory insurance of employees against accidents in the performance of their employment (official) duties

Accidents cannot always be avoided even in an office environment, and in production injuries occur significantly more often. A group insurance contract will give you, in the form of an insurance company, a reliable partner and ally in resolving compensation payments to those injured in an industrial accident.

Compulsory insurance of employees against accidents

The insurance company will protect your enterprise in the event of harm to the life and health of an employee sustained in the performance of employment (official) duties.

An insured event is an incident at work that has led to the death or partial loss of working capacity of an employee.

The insurance payment for harm connected with the death of an employee or damage to their health is made in the amount of the harm caused, but not more than the sum insured set by the insurance contract.

The sum insured (the limit of the insurer's liability under the contract) is set by agreement of the parties, but must not be less than the annual payroll of all the enterprise's employees by category of personnel.

The sum insured per employee may not exceed ten times the annual minimum wage established by law for the current year. It can be calculated by the formula: MW (minimum wage) × 10 × 12.

Who compulsory employee insurance affects

OSRNS is compulsory insurance of an employee against accidents in the performance of their employment (official) duties. The obligation to conclude the contract lies with the employer: a legal entity of any form of ownership and an individual entrepreneur who has employees under an employment contract. The policyholder is the employer, the insured persons are its employees, and the recipient of the payment is the injured employee or, in the event of their death, persons entitled to compensation for the harm.

The point of this type of insurance is that, under the law, the obligation to compensate harm to an employee's health lies with the employer. The OSRNS contract transfers this financial burden to the insurance company: the injured person receives a payment faster and more predictably, while the enterprise does not divert working capital to compensation and reduces the risk of legal disputes with employees.

Insurance rates by occupational risk class

Insurance rates in accordance with the Law* are distributed across 22 occupational risk classes depending on the types of economic activity and are as follows (as a % of the sum insured):

The occupational risk class is determined by the enterprise's main type of economic activity. If the actual activity does not match the registered one, this is worth discussing with the insurer in advance: an error in the class leads either to overpayment or to disputes during checks and payment.

This insurance contract must be concluded within 10 calendar days from the formation of the firm or from the hiring of new employees.

The insurance premium depends on:

• the enterprise's activity;
• the size of the payroll;
• the claims statistics.

Insured event:

• establishment of the degree of loss of an employee's occupational working capacity;
• occupational disease;
• death of an employee.

Discount on compulsory employee accident insurance

If the enterprise has had no insured events in the last 5 years, you can receive a discount from the insurance company. The amount of the discount and whether it is granted are decided by the insurance company independently.

Increase of the insurance premium

If there have been insured events at the workplace, the insurance company may, at its discretion, increase the rate using the coefficients stated in the Law.

How to calculate the cost of the contract in practice

1. Determine the main type of economic activity and the corresponding occupational risk class.
2. Prepare information on the annual payroll broken down by category of personnel and on the number of employees.
3. Apply the rate of your class to the sum insured.
4. Take into account correction coefficients: a discount where there are no insured events or an increase where there are.

You can get a preliminary estimate in the employee accident insurance calculator, and the exact premium is calculated by the insurer from the enterprise's data.

What to check in the contract

• The procedure for including new employees: the contract must cover all employees, including those hired after it was concluded.
• That the stated payroll is correct: understated data leads to disputes when payments are calculated.
• The term and the renewal procedure, so that no period without protection arises between contracts.
• The procedure and deadlines for notifying the insurer of an accident and the list of documents for payment.
• The grounds for refusing payment provided for by law, for example, intentional acts of an employee aimed at causing harm to their own health.

What to do in the event of an accident

1. Provide first aid to the injured person and call an ambulance if necessary.
2. Preserve the scene of the incident if this does not endanger the life and health of other people.
3. Investigate the accident in the manner established by the labour legislation of the Republic of Kazakhstan and draw up an accident report.
4. Notify the insurance company within the period provided for by the contract and send it the investigation report, medical documents and, in case of loss of working capacity, the conclusion of the medical and social examination on the degree of its loss.
5. Monitor the deadlines for reviewing the application and for the employee or their family to receive the payment.

Timely notification and a complete set of documents are the main condition for a fast payment. A delay in the investigation or incomplete information in the report most often becomes the cause of a protracted settlement.

Common mistakes of employers

• New employees are not included in the contract within the established 10-day period.
• The wrong occupational risk class is chosen.
• The payroll is stated incompletely or without a breakdown by category of personnel.
• The insurer is told about an accident late, when some of the documents are already hard to recover.
• OSRNS is confused with voluntary accident insurance, and one is assumed to replace the other.

Frequently asked questions

Is a contract needed if there is only one employee?

Yes. The obligation arises whenever there are employees under an employment contract, regardless of their number.

Can OSRNS be supplemented with a voluntary programme?

Yes. The compulsory contract covers the risks established by law, while voluntary employee insurance makes it possible to extend protection — for example, to increase payment amounts or add medical expenses.

How do I choose an insurer?

The contract is concluded with an insurance company that holds an ARDFM licence for this class of insurance. The list of insurance companies helps you compare insurers; consider not only the rate but also claims settlement practice.

Requirements for sums insured, rates and coefficients change along with legislation, so before concluding a contract check against the current version of the law at adilet.zan.kz. If you need help with the calculation or choosing an insurer, you can get a consultation from a Polis Re broker.

*Employer's liability insurance 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 an Employee Against Accidents in the Performance of Employment (Official) Duties" dated 30.12.09 No. 234-IV.