Compulsory employee insurance
17 January 2012 Reading: 3 min Views: 8 434
Every production facility poses a different degree of danger to its personnel.
The purpose of compulsory employee accident insurance is to provide insurance payouts to an employee if harm is caused to their life and health while performing their job duties.
What is it?
Employee accident insurance is a type of compulsory insurance provided for by the Law of the Republic of Kazakhstan "On Compulsory Insurance of Employees against Accidents in the Performance of Labour (Official) Duties".
What does a compulsory employee accident insurance policy give the employer?
A compulsory insurance contract reduces the employer's risk of financial costs in the event of accidents at work, on business trips and in other situations related to employees performing their job duties. Depending on the terms of the insurance contract, these risks are partially or fully transferred to the insurance company.
If the employer has not concluded an accident insurance contract for its employees...
Since this type of insurance is compulsory, the absence of a compulsory employee insurance contract may result in fines of 10 to 1,000 MCI. Moreover, the absence of a compulsory insurance contract makes the employer less attractive (insurance has become firmly established as part of a "good benefits package"), increases the risk of unforeseen financial costs, and raises the likelihood of conflicts with staff and litigation.
What factors affect the cost of a compulsory insurance policy?
Since this type of insurance is compulsory and regulated by the legislation of the Republic of Kazakhstan, the method of calculating the cost of insurance is uniform and depends on the following factors:
- the occupational risk class (the level of occupational injuries and occupational diseases – from 1 to 22 depending on the type of economic activity);
- the payroll fund;
- statistics of insured events that have previously occurred at the company.
The amount of the insurance premium is determined by the insurance contract on the basis of the insurance rate established by the Law of the Republic of Kazakhstan (minimum and maximum rates are set for each category of personnel), multiplied by the sum insured.
For what term is the insurance contract concluded?
Traditionally, the insurance term is set at 12 months.
Please also read the following information
1. Legal opinion on the amendments to the law effective from 01.01.2012.
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