The Carrier Liability Law is the Law of the Republic of Kazakhstan “On Compulsory Insurance of the Civil Liability of the Carrier to Passengers”.

Download - gpo-perevozshchika-pered-passazhirom.doc [152 Kb] (downloads: 103)

Purpose of the law

The Law of 1 July 2003 No. 444-II introduced compulsory insurance of carriers’ liability to passengers. Its aim is to guarantee that a passenger whose life, health or property is harmed during a trip receives compensation from an insurance payment rather than depending solely on the carrier’s financial position. For the carrier, insurance is a way to transfer to the insurer the large unforeseen costs that may arise after an accident or an incident on the road.

Who the law applies to

  • Passenger carriers operating railway, sea, inland waterway, air, road and urban electric transport.
  • Passengers – the contract is concluded in their favour; if a passenger dies, the persons named in the law are entitled to the payment.
  • Insurance companies holding a licence for this class of compulsory insurance.
  • The authorised body – today the insurance market is supervised by ARDFM.

Main provisions

  • The object of insurance is the carrier’s property interest connected with its obligation to compensate harm caused to passengers.
  • An insured event is an incident during carriage that results in harm to the life, health and (or) property of a passenger.
  • The amount of the payment depends on the type of transport and the severity of the harm: death, establishment of disability, inpatient treatment without disability.
  • The sum insured (liability limit) takes into account the type of transport and the number of passengers carried.
  • Insurance rates are set by law: for most types of transport in monthly calculation indices (MCI), for rail transport as a percentage of the cost of carriage.

Obligations of the carrier

  • conclude an insurance contract before starting carriage and keep it in force throughout the period of operation;
  • include in the contract all vehicles used to carry passengers;
  • notify the insurer of changes – the number of vehicles, passenger capacity, routes;
  • report an incident to the insurer without delay and assist in collecting documents;
  • not obstruct injured persons in applying to the insurer.

Rights of an injured passenger

The passenger, or the persons entitled to payment if the passenger dies, apply to the carrier’s insurer with a claim. Documents are usually needed to confirm the fact of carriage (a ticket or other travel document), the circumstances of the incident, the nature of the harm (medical documents, a decision establishing disability, a death certificate), as well as documents on damage to or loss of property. If the harm caused exceeds the insurance payment, the remainder can be claimed from the carrier under the rules of civil law.

What matters in practice

  • Carriage without a contract entails liability under the legislation on administrative offences, and the carrier compensates all harm to passengers from its own funds.
  • The list of vehicles in the contract must match the actual fleet: a vehicle not included in the contract remains without protection.
  • Tickets and documents should be kept by the passenger until the end of the trip – they are the main proof that carriage took place.
  • Insurance Payments Guarantee Fund. For compulsory types of insurance in Kazakhstan there is a system guaranteeing insurance payments through the Insurance Payments Guarantee Fund; check the current legislation for the conditions of its application.

Currency of the version

The file available for download is an archived version. Since the law was adopted, amendments have been made to it, including to the limits, the payment procedure and the powers of state bodies. Before relying on specific provisions, check them against the current version in the “Adilet” system (adilet.zan.kz).

Frequently asked questions

How does carrier liability insurance differ from MTPL?

MTPL covers harm caused to third parties when a vehicle is operated – for example, to other road users. Carrier liability insurance protects passengers specifically during carriage. A bus carrier needs both policies.

Is harm to the crew covered?

No, drivers, flight attendants and other employees of the carrier are protected under compulsory employee accident insurance (OSRNS).

How to choose liability insurance for a transport business is explained in the liability insurance section, and the key terms are in the glossary. For questions on applying the law, you can get a consultation from a broker.