Compulsory motor insurance: prices, laws, nuances

Compulsory motor insurance, civil liability insurance of a vehicle owner, or motor insurance.

The above are not all the same type of insurance, but drivers use them to refer to compulsory civil liability insurance (hereinafter CLI) of a vehicle owner. Vehicle owners do not always like this type of insurance, since they see it as an additional, unnecessary expense; in Polis Re's view, this is a rather selfish approach. Polis Re is confident that few vehicle owners could quickly and without undue pressure compensate damage they caused amounting to 2,000,000 tenge; as a rule, in such a case the vehicle owner begins to avoid the person to whom he owes compensation. A compulsory motor insurance policy provides social protection for vehicle owners and is intended to protect victims from random dangers on the road and from careless drivers, compensating if not the moral then the material part of the damage. If this article has not answered your questions, see other materials or other types of motor insurance.

Why compulsory CLI insurance of a vehicle owner is needed

Let us list all the reasons:

  1. Compulsory motor insurance is regulated by law;
  2. operating a vehicle without compulsory insurance is prohibited;
  3. the vehicle owner will suffer large losses in the event of a road accident if he does not have a motor insurance policy at that time.

Concluding a motor insurance contract

Stages:

  1. the insurance premium is calculated: in accordance with the requirements of legislation, the calculation is carried out automatically by a single program;
  2. an application form is completed;
  3. the insurance premium for compulsory motor insurance is paid;
  4. the compulsory motor insurance policy is issued.

How much a compulsory motor insurance policy costs

The price of a motor insurance policy is determined by law and is binding and identical for all insurance companies, so a vehicle owner does not need to rely on price when choosing an insurance company. You can calculate the cost of a policy for your car in the MTPL calculator.

What a compulsory motor insurance policy protects

A compulsory motor insurance policy protects the civil liability of the vehicle owner: that is, if harm is caused to the life, health or property of third parties while operating a motor vehicle, the damage caused will be compensated by the insurance company within the limits set by law.

What can replace a compulsory motor insurance policy

Nothing: in Kazakhstan there is no alternative that would release you from compulsory motor insurance, so the policy must be bought in any case.

How long a compulsory CLI policy of a vehicle owner is valid

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

Types of insurance

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.

Who must take out MTPL

The obligation to insure liability lies with the vehicle owner — an individual or legal entity in whose name the vehicle is registered or which holds it on another lawful basis. The policy must be valid for the entire time the vehicle is operated on the roads of Kazakhstan. For vehicles temporarily entering from abroad, the insurance procedure is determined by separate rules. The main requirements are set out in the Law of the Republic of Kazakhstan "On Compulsory Insurance of Civil Liability of Vehicle Owners"; we recommend checking the current version in the "Adilet" legal information system (adilet.zan.kz).

What the price of the policy depends on

Although the calculation rules are the same in all companies, the amount differs for different vehicle owners. The cost is affected by:

  • the type of vehicle (passenger car, truck, bus, motorcycle, etc.);
  • the territory where the vehicle is registered;
  • the age and driving experience of the persons permitted to drive;
  • the age of the vehicle;
  • the class under the bonus-malus system: accident-free driving lowers the cost, while at-fault insured events raise it.

The calculation is tied to the MCI, so the final amount may change along with its size. Information on policies and claims history is kept in a single insurance database, so it is not possible to improve one's class simply by changing insurer.

What MTPL does not cover

  • repair of the at-fault party's own car — for that a voluntary CASCO policy is needed;
  • harm to the health of the at-fault party himself;
  • damage in excess of the liability limits set by law — the at-fault party compensates it himself;
  • cases expressly excluded by law.

It is also important to understand the right of recourse: in situations provided for by law (for example, if the at-fault party was driving while intoxicated or left the scene of the accident), the insurer will pay compensation to the victim but is then entitled to claim this amount back from the at-fault party.

What to do in a road accident

  1. Stop, switch on the hazard lights, put out the warning triangle, help the injured and, if necessary, call an ambulance.
  2. Report the incident to the police or, if legislation allows simplified processing and the participants agree on the circumstances, record the accident under the simplified procedure.
  3. Exchange details with the other participants: full names, policy numbers, names of insurance companies.
  4. Photograph the scene, the damage and the position of the vehicles, and note down the contact details of witnesses.
  5. Notify the insurer within the period set by law and submit an application with the necessary documents.

The injured party applies to the at-fault party's insurer. If the at-fault party's insurance company has been liquidated, then, in cases provided for by legislation, the payment may be made by the Insurance Payments Guarantee Fund.

Frequently asked questions

Can I choose an insurer by price? No, the price is the same. It is worth choosing on convenience of issue, quality of claims settlement and speed of payment.

Do I need to carry a paper policy with me? Information about the policy is held in a single database, and its existence can be checked using the vehicle's data; nevertheless it is useful to have the policy number and the insurer's contacts with you.

Is MTPL alone enough? To meet the requirements of the law — yes. But the policy protects only third parties. To insure your own car, consider the options in the motor insurance section.

If you still have questions about issuing a policy or settling a road accident, you can get a consultation.