Civil liability of a private notary

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Below is a brief analysis of the law on compulsory civil liability insurance of private notaries: why it was adopted, whom it affects, what obligations and rights arise for the parties and what is important to take into account in practice. The file for download was published a long time ago and may not reflect the latest amendments, so before applying it check against the current version at adilet.zan.kz.

Purpose of the law

The Law of the Republic of Kazakhstan "On Compulsory Civil Liability Insurance of Private Notaries" establishes the legal, economic and organizational foundations of this type of compulsory insurance. A private notary performs legally significant acts on behalf of the state but works on a self-financing basis. An error in certifying a transaction or drawing up a document can result in significant losses for the client. The law guarantees that such harm will be compensated from an insurance payment and will not depend solely on the notary's personal property.

Who the law affects

The law applies to private notaries engaged in notarial activity in the Republic of Kazakhstan. Having a valid compulsory insurance contract is a condition for carrying on private notarial practice, which is checked within the framework of legislation on the notary. For citizens and companies turning to a notary, the law means an additional guarantee: if a notary makes a mistake, the injured person has a chance to obtain compensation from the insurer.

Basic concepts

  • Policyholder — a private notary who has concluded a contract with an insurer.
  • Insurer — an insurance company with an ARDFM licence for the relevant class of insurance.
  • Beneficiary — the person who has suffered property damage as a result of a notarial act.
  • Object of insurance — the notary's property interest connected with the obligation to compensate harm caused in performing notarial acts.
  • Insured event — the fact of such an obligation arising, confirmed in the manner established by law, for example by a court decision that has entered into legal force.

What situations fall under the insurance

As a rule, these are errors in performing notarial acts that have resulted in property damage: certification of a transaction later declared invalid because of a violation committed by the notary; incorrect verification of the authority or documents of the parties to a transaction; errors in drawing up inheritance and other documents. Intentional acts of the notary and harm not connected with notarial activity are not covered by the insurance. The exact list of cases and exclusions is determined by the law and the contract.

Obligations and rights of the parties

The private notary

  • conclude a compulsory insurance contract and keep it in force throughout the period of notarial activity;
  • provide the insurer with accurate information that affects the assessment of risk;
  • notify the insurer in good time of claims and lawsuits brought;
  • not settle claims independently without agreement with the insurer, if the contract so provides.

The insurer

  • issue an insurance policy and explain the terms of insurance;
  • review the application and make the insurance payment within the established deadlines;
  • keep confidential the information obtained in connection with the contract.

The injured person

The beneficiary has the right to demand compensation within the sum insured. If the harm exceeds the limit, the remaining part can be recovered from the notary in the general manner.

Sum insured and premium

The law establishes the minimum amount of the sum insured, expressed in monthly calculation indices (MCI), and the parties determine the premium within the requirements of the law. Since the MCI is approved annually, the monetary equivalent of the minimum sum changes, and this must be taken into account at each renewal of the contract.

What matters in practice

  • If a notary regularly certifies real estate transactions or large business transactions, the minimum limit may prove insufficient — it is sensible to increase the sum.
  • Check how the contract defines the period of liability: by the date the notarial act was performed or by the date the claim was made.
  • Do not allow gaps between contracts; otherwise a claim made in that period will remain without cover.
  • Keep registers and copies of documents: they are needed to defend your position and to settle the insured event.

How to use the text of the law

The law and the related legislation on the notary have been amended. Before concluding a contract or in a dispute with the insurer, check against the current version in the information and legal system of normative legal acts of the Republic of Kazakhstan at adilet.zan.kz. The meanings of insurance terms are explained in the glossary.

You can calculate the approximate cost of a policy in the notaries' liability insurance calculator, and other programmes are described in the liability insurance section. To choose a limit and compare insurers' offers, you can get a consultation from a broker.