In brief: since 1 January 2020, advocates and legal consultants in Kazakhstan have been required to insure their professional liability. The policy protects the property interests of the specialist and of clients in the event of professional errors covered by the contract.
Contents
  1. Who needs a policy
  2. What is covered
  3. Documents
  4. The insured event

The obligation to conclude a contract

An advocate or legal consultant must conclude an insurance contract covering obligations arising from harm caused to third parties in the course of providing legal aid. Without a policy, the person cannot lawfully carry out the relevant professional activity in the cases provided for by law.

Important: this service is provided only by insurers holding a valid licence. An intermediary can assist with arranging the policy, but is not the insurer and does not decide on payments.

Civil liability insurance of legal consultants and advocates.

Imposed civil liability insurance of legal consultants and advocates

Imposed insurance means that the obligation to conclude a contract is established for the advocate or legal consultant, while the insurance service is provided by an insurer holding a valid licence. – this is insurance that is mandatory for the Policyholder (the person who must be insured) but voluntary for the Insurer.
Civil liability insurance of legal consultants and advocates is in fact professional liability insurance, aimed at protecting the interests of consumers of these services and of third parties.

Insured events under civil liability insurance of legal consultants and advocates:
1) missing procedural deadlines;
2) incorrect preparation of documents;
3) failure to inform the person to whom legal aid is provided under the contract of the consequences of the legal actions taken, resulting in harm to that person;
4) loss of or damage to documents received by the policyholder (the insured person) from the client for the purpose of providing legal aid;
5) unlawful disclosure of information that became known to the insured person in the course of providing legal aid;
6) other actions (omissions) that caused harm to the property interests of third parties to whom legal aid is provided under the contract, as a result of the provision of such aid by the Insured person.

Grounds for the obligation to conclude a civil liability insurance contract for legal consultants and advocates:
Under Article 77 of the Law of the Republic of Kazakhstan "On Advocacy and Legal Aid", a legal consultant is obliged to conclude a professional liability insurance contract covering obligations arising from harm caused to third parties to whom legal aid is provided under a contract.

The sum insured under civil liability insurance of legal consultants and advocates:
the sum insured is not less than 1,000 MCI (2,525,000 tenge) for Astana;
not less than 500 MCI for other regions
*MCI – monthly calculation index

How much civil liability insurance of legal consultants and advocates costs:
The cost is determined individually for each insured person.
This requirement will apply lawfully to advocates and legal consultants from the beginning of 2020. From 1 January 2020, Article 36 and Article 77 of the Law of the Republic of Kazakhstan "On Advocacy and Legal Aid" on insuring the activities of advocates and legal consultants enter into force.
The institution of civil liability insurance for advocates and legal consultants is a novelty introduced by the specialized law for advocates and legal consultants. Under the provisions of the articles cited above, an advocate (Article 36) and a legal consultant (Article 77) may not begin providing legal aid without a professional liability insurance contract. No insurance, no right to practise, much as with driving a vehicle.
The legislator has defined the insured event in the same way for advocates and legal consultants: the occurrence of the policyholder's civil liability to compensate harm caused to the property interests of third parties to whom legal aid is provided under a contract, as a result of professional errors made by the insured person in providing legal aid.

For the purposes of this article, professional errors are understood to mean:
1) missing procedural deadlines;
2) incorrect preparation of documents;
3) failure to inform the person to whom legal aid is provided under the contract of the consequences of the legal actions taken, resulting in harm to that person;
4) loss of or damage to documents received by the policyholder (the insured person) from the client for the purpose of providing legal aid;
5) unlawful disclosure of information constituting advocate-client privilege.
The professional liability insurance contract may define other actions (omissions) that caused harm to the property interests of third parties to whom legal aid is provided under the contract, as a result of the provision of such aid by the insured person.
The insurance contract must state the object of insurance, the insured event, the sum insured, the tariff rate, the premium, the deductible, and the term and territory of insurance. The insurer may be a legal entity holding a licence to carry out insurance (reinsurance) activities in the "general insurance" class.
The legislator recommends concluding the insurance agreement on the basis of a standard contract. When studying the essential terms of a standard contract, pay attention to the cases in which the insurer is released from making an insurance payment.

To arrange insurance for legal entities and to get more detailed information, contact our insurance managers.

Typical professional errors

  • missing a procedural deadline;
  • incorrect preparation of a document;
  • failure to inform the client of the legal consequences;
  • loss of or damage to client documents;
  • unlawful disclosure of information, if the risk is included in the contract.

What to check in the contract

  1. the term and territory of insurance;
  2. the sum insured and the limit per claim;
  3. the deductible and the list of exclusions;
  4. the procedure for notifying the insurer;
  5. the list of documents needed to confirm the harm;
  6. whether cover extends to employees and assistants.

What to do when a client makes a claim

Record the demand, notify the insurer within the set period, and keep the legal aid agreement, the case materials and the correspondence. Do not admit the amount of damage or enter into a settlement without agreement, if the insurance contract so provides.

This material is provided for information purposes. To check the current requirements, use the Law of the Republic of Kazakhstan "On Advocacy and Legal Aid" and the insurer's current rules.