The law on compulsory accident insurance (latest version) is the Law of the Republic of Kazakhstan “On Compulsory Insurance of Employees against Accidents in the Course of Their Employment (Official) Duties”.

Download - zakon-osrns.doc [253 Kb] (downloads: 113)

Purpose of the law

The OSRNS law creates a system in which harm caused to an employee by an accident at work is compensated by the insurer. The employee receives guaranteed payments even if the employer has no available funds, and the employer is protected from large one-off costs of compensating harm. The law defines the legal, economic and organisational foundations of compulsory insurance and the rights and obligations of the employer, the employee and the insurer.

Who it applies to

  • Employers – as a general rule, organisations and individual entrepreneurs that have employees under an employment contract. The law may regulate certain categories of employers and employees separately – this must be checked in the text of the law.
  • Employees – the insured persons in whose favour the contract is concluded.
  • Insurance companies licensed for this class of compulsory insurance.
  • State bodies – ARDFM as the regulator of the insurance market and the labour authorities that take part in investigating accidents.

What is an insured event

An insured event is an accident that occurs to an employee in the course of performing employment (official) duties and results in loss of professional working capacity or the employee’s death. The fact of an accident connected with work is established in the manner provided by labour legislation – following an investigation and with the drawing up of the corresponding report.

Obligations of the employer

  • conclude an OSRNS contract and keep it in force in respect of all employees;
  • pay the insurance premium on time;
  • notify the insurer of changes in headcount and the payroll if this affects the terms of the contract;
  • notify the insurer of an accident without delay;
  • organise an investigation of the accident and pass its materials to the insurer;
  • inform employees of which insurer they are insured with.

Rights of the employee

The injured employee, or in the event of death the persons entitled to compensation, apply for payment to the employer’s insurer. The law provides for payments in connection with loss of professional working capacity and in connection with the employee’s death; their amount depends on the degree of loss of professional working capacity, the employee’s earnings and other conditions listed in the law. If the insurance payments do not cover all the harm caused, the employee is entitled to claim the remainder from the employer in the manner established by civil and labour legislation.

What the cost of insurance depends on

The insurance premium is calculated from the annual payroll and a rate that depends on the class of occupational risk – that is, on the employer’s type of economic activity. The higher the likelihood of injuries in the industry, the higher the rate. You can make a preliminary estimate of the cost in the employee accident insurance calculator.

What matters in practice

  • New employees. They must be covered by the contract from their first day of work – check how the contract accounts for changes in headcount.
  • Notification deadlines. Late notification of an accident complicates settlement.
  • Quality of the investigation. Whether the event is recognised as insured depends on how the accident report is drawn up.
  • The absence of a contract does not release the employer from the obligation to compensate harm – in that case it pays from its own funds and is liable for violating the law.
  • OSRNS and voluntary insurance. The compulsory policy can be supplemented with voluntary accident insurance and health insurance for employees.

Currency of the version

The law is amended regularly: the procedure for calculating payments, occupational risk classes and contract requirements are revised. Before applying its provisions, check them against the current version in the “Adilet” system (adilet.zan.kz).

Frequently asked questions

Is OSRNS needed if the company has only one employee?

The obligation is linked to the existence of employees under an employment contract, not to their number. Exceptions, if any, are determined by the law.

Can I change my OSRNS insurer?

Yes, when the contract expires the employer is entitled to conclude a new contract with another insurer, ensuring there is no gap in insurance protection.

For more on insuring staff, see the employee insurance section, and for terms see the glossary. To select an OSRNS contract for your company, get a consultation from a broker.