Compulsory Employee Accident Insurance

Compulsory employee accident insurance

Compulsory employee insurance protects the property interests of an employee if harm is caused to his or her life or health in the performance of employment duties. The employer concludes a contract in favor of its employees with a licensed life insurance company.

1. Legal basis
2. Who must conclude the contract
3. Who can be the insurer
4. What counts as an insured event
5. What the insurance covers
6. What the insurance premium depends on

Legal basis

The main rules are established by Law of the Republic of Kazakhstan No. 30 of 7 February 2005 "On Compulsory Insurance of an Employee against Accidents in the Performance of Employment (Official) Duties". The Law defines the participants, the insured event, and the procedure for concluding the contract and making payments.

The Law was amended in 2026, and some of the new provisions take effect from 2027. The employer therefore needs to check the version in force on the date the contract is concluded and renewed.

Who must conclude the contract

The contract is arranged by the employer, regardless of its legal form and number of staff, unless it falls within the exceptions expressly established by law. State institutions are regulated separately. Employees who perform employment or official duties are subject to insurance.

The contract must remain in force continuously throughout the period the staff are working. If the payroll, headcount or type of activity changes, the information must be updated in accordance with the contract and the Law.

Who can be the insurer

The service is provided only by a life insurance company that holds a license for the class of annuity insurance and compulsory insurance of an employee against accidents. An insurance agent or broker may take part in arranging the cover but does not assume the obligation to pay.

Services in compulsory types of insurance are provided only by insurance companies that hold the relevant license. Check the legal entity, the license number and the permitted class in the regulator's register.

What counts as an insured event

An insured event is connected with an accident in the performance of employment duties as a result of a harmful or hazardous occupational factor that has led to an occupational injury, a sudden deterioration of health, poisoning, an occupational disease, the determination of a degree of loss of occupational working capacity, or death.

The event must be investigated and documented in accordance with labor legislation. Every accident that causes loss of working capacity for more than one day is confirmed by the relevant report and medical documents.

What the insurance covers

• payments where a loss of occupational working capacity has been established;
• payments to persons entitled to compensation for harm in the event of the employee's death;
• annuity payments in the cases provided for by law;
• other payments and expenses within the limits of the Law and the contract.

An insurance policy does not release the employer from the obligation to ensure safe working conditions, to investigate the incident and to compensate the difference between the actual harm and the insurance benefit, where such an obligation arises by law.

What the insurance premium depends on

• the occupational risk class according to the type of economic activity;
• the annual payroll;
• the history of workplace injuries;
• the term of insurance and changes in headcount;
• correction coefficients provided for by law;
• the results of the assessment of working conditions, in the cases established.

The rate is regulated by legislation. The employer must provide an accurate payroll and the main type of activity. Understating the data creates a risk of an additional charge and of a dispute.

How to conclude the contract

1. Check the obligation and the expiry date of the current policy.
2. Determine the main type of activity and the risk class.
3. Prepare the information on employees and the payroll.
4. Choose a licensed life insurance company.
5. Verify the sum insured, the rate, the term and the notification procedure.
6. Sign the contract before any uninsured period begins.
7. Check that the information has been transmitted to the database and to the "Labor Protection and Safety" system.

What to do in the event of an accident

1. provide first aid and eliminate the immediate danger;
2. notify the competent authorities and the insurer;
3. preserve the scene or record it in detail;
4. organize an investigation and draw up a report;
5. obtain a medical certificate;
6. give the insurer the complete set of documents;
7. keep the incoming reference numbers, correspondence and the decision.

Notifying the insurer does not replace the employer's mandatory investigation, and the company's internal report does not always replace a document in the prescribed form.

If the employer has not arranged a policy

Evading compulsory insurance entails administrative liability. According to official clarifications of 2026, the fine depends on the category of the offender and can reach 1000 MCI for large businesses. The specific amount should be checked against the current version of the Code of Administrative Offenses.

The absence of a policy does not release the employer from compensating the harm caused or from its other obligations. In that case, the financial burden may fall entirely on the employer.

Employee's rights

• to find out whether a contract has been concluded and with which company;
• to receive information on how to make a claim;
• to take part in the investigation within the limits provided for;
• to receive copies of the documents that relate to him or her;
• to apply for a payment and receive a written decision;
• to appeal against a violation of labor and insurance rights.

Typical employer mistakes

• renewing after the old contract has expired;
• the wrong type of activity and risk class;
• an understated payroll;
• an incomplete list of employees;
• failing to transmit data to the information system;
• late notification of an accident;
• replacing an investigation with a simple internal memo;
• believing that the policy is a substitute for occupational safety.

Brief conclusion

Compulsory employee accident insurance is not an optional benefits package but a requirement of the law. The employer must conclude a contract in advance with a proper life insurance company, report up-to-date data and properly document every accident. It is useful for the employee to know the insurer and the claims procedure before an incident occurs.