Compulsory insurance of employees against accidents (CEAI) protects the property interests of an employee if harm is caused to their life or health in the performance of their job duties. The employer must promptly conclude a contract and provide the necessary information to the authorized labour body.

In 2013 this page was devoted to a critique of the early stage of the transfer of CEAI to life insurance companies. The historical analysis is retained below, but the figures for 2011–2012 cannot be used to assess the current market. The main part of the material has been updated in line with current requirements in Kazakhstan.

Who must insure employees

Under the labour legislation of the Republic of Kazakhstan, employers must insure employees against accidents in the performance of their job duties. According to current clarifications from the labour inspectorate, the requirement applies regardless of the form of ownership and the size of the business, with the exception of state institutions.

The obligation also applies to small businesses, to individual entrepreneurs acting as employers, and to large organizations. A small staff or the absence of hazardous production does not remove the requirement.

Important: CEAI is provided only by a life insurance company holding a valid licence for this compulsory class. An agent, consultant or general insurance company cannot be the insurer under the contract.

What the subject of insurance is

The subject of CEAI is the property interest of an employee whose life or health has been harmed as a result of an accident in the performance of job duties. The law links protection to the determination of the degree of loss of professional working capacity, an occupational disease or death, and other expressly provided conditions.

The contract is concluded by the employer for the benefit of the employees. The employee does not have to buy such a policy independently or pay the insurance premium.

What can be regarded as an insured event

An insured event may be an accident in the performance of job duties resulting from exposure to a harmful or dangerous production factor, which caused:

  • an occupational injury;
  • a sudden deterioration in health or poisoning;
  • the determination of a degree of loss of professional working capacity;
  • an occupational disease in the cases provided for;
  • the death of the employee.

Not every incident on the employer's premises is automatically recognized as insured. The circumstances are investigated, documented in the prescribed manner and checked against the law and the contract.

What the employer must do

  1. Determine the list of employees and the payroll.
  2. Establish the types of economic activity and the classes of occupational risk.
  3. Choose a licensed life insurance company and provide accurate information.
  4. Conclude the contract before employees are exposed to the risk and pay the premium on time.
  5. Report changes in headcount, activity and other material data.
  6. Keep the policy and confirmations and send information to the authorized labour body.
  7. Organize the investigation and notification in the event of an accident.

Electronic arrangement for SMEs

The law provides for the possibility of a small or medium-sized business submitting an electronic application to conclude a contract through the e-government web portal. The specific process and the insurers available may change, so check the current eGov service.

An electronic policy has the same practical purpose: to ensure continuous protection and the availability of accurate data on employees.

What the insurance premium depends on

Occupational risk

The main type of activity and the hazard of the work performed.

Payroll

Headcount and wage data.

Injury history

The number of injured persons and the applicable adjustment coefficients.

The rate cannot be determined only by the company's name or headcount. If a branch carries out a different activity, the calculation may take into account the indicators of the employer and the branch under the rules of the law.

Documents for concluding the contract

  • the employer's registration details and BIN or IIN;
  • types of economic activity;
  • headcount and categories of employees;
  • payroll;
  • data on branches;
  • information on accidents and injured persons;
  • the previous contract and other documents at the insurer's request.

Understating the payroll, concealing a hazardous activity or leaving out some employees can lead to violations and complicate payment.

What to do in the event of an accident

  1. Provide first aid and call the medical service.
  2. Eliminate the immediate danger to other employees.
  3. Record the scene, if this does not threaten safety.
  4. Notify the competent authorities and the insurer within the prescribed periods.
  5. Organize the investigation and draw up a report.
  6. Collect medical, employment and financial documents to determine the payment.

Notifying the insurer does not replace the investigation of the accident and the employer's occupational safety obligations.

What payments are provided for

The procedure and amount of payments depend on the consequences of the event, the degree of loss of professional working capacity, earnings, the period and the requirements of the law. In the event of death, payments are made to persons entitled to compensation for harm in the prescribed manner.

A fixed amount cannot be promised without documents. The employee or their representative is entitled to a written explanation of the calculation and the insurer's decision.

If there is no contract

The absence of a compulsory policy does not release the employer from liability to the injured person and to the state. The employer may have to compensate the harm from its own funds, and also answer for breach of labour legislation.

The contract therefore needs to be arranged before an incident and renewed on time, not after an inspector's demand or the occurrence of an injury.

CEAI does not replace occupational safety

Insurance compensates the harm provided for, but does not prevent injury. The employer must assess risks, train staff, issue protective equipment, monitor equipment and investigate incidents.

A good safety system reduces the likelihood of accidents, protects people and can influence the enterprise's risk history.

How to choose a life insurance company

  • check the valid CEAI licence;
  • compare the quality of electronic arrangement and support;
  • clarify the notification procedure and the set of documents;
  • assess the availability of branches and remote channels;
  • review the financial statements and current ratings;
  • do not agree to changes to the mandatory terms contrary to the law.

Price matters, but a compulsory contract must correctly cover all employees and comply with the legislation.

Archive market analysis for 2011–2012

The original article criticized the consequences of transferring the CEAI class to the exclusive remit of life insurance companies from 1 January 2012. The main points and figures are retained below as historical material.

  • the number of contracts in force, according to the author, fell by 8.2%: from 50,631 on 1 September 2011 to 46,483 a year later;
  • in the individual entrepreneur sector, a fall from 7,979 to 4,594 contracts, or 42.4%, was reported;
  • the author claimed there was a shortage of agency networks and offices of life insurance companies to serve SMEs;
  • it was asserted that about 68% of the CEAI market was concentrated in one company, whereas previously more than 30 general insurance companies had operated;
  • the average premium per contract, according to the data cited, fell from 477,000 tenge in 2011 to 271,000 tenge in 2012;
  • 27% of premiums in the eight months of 2012 were linked to reinsurance through general insurance companies;
  • the amount of funds ceded to foreign reinsurers was compared as 2.48 billion tenge for the eight months of 2011 and 3.12 billion tenge for the same period of 2012;
  • the author criticized proposals to increase the minimum premium and regarded this as an additional burden on SMEs;
  • in conclusion, it was proposed to restore the right of general insurance companies to operate in CEAI in parallel.

These statements reflect the author's position and the discussion of 2013. They do not confirm the state of the market in 2026 and should not be used to choose an insurer without current statistics.

What has changed in the approach to the material

The old article was polemical and contained sweeping accusations against life insurance companies. The new version separates historical opinion from current obligations and does not carry old figures over to the modern market.

Today, what matters to an employer is not the debate over the market structure of 2012, but having a valid policy, accurate information on employees, compliance with occupational safety and the right actions when an incident occurs.

The role of Polis Re

Polis Re can help an employer prepare data, compare licensed life insurance companies and support the arrangement of cover. However, the insurance service and payments are provided by the chosen life insurance company.

An intermediary may not pass itself off as an insurer or guarantee a payment before an insured event has been established.

Summary: CEAI is a compulsory mechanism for protecting the employee. Arrange the contract on time with a licensed life insurance company, include all employees, provide accurate data and combine insurance with a real occupational safety system.

This material is for information purposes only. Before arranging cover, check the current version of the law, the standard contract and the labour inspectorate's clarifications.