Mandatory insurance of employer civil liability

 

 

 

 

 

 

 

 

 

Since February 12, 2009 the Law of the Kyrgyz Republic No. 194 as of 05.08.2008 “On mandatory insurance of employer civil liability for injury of harm for life and health of employee during fulfillment of his/her job (work) duties” entered into force.

Who must conclude an agreement of mandatory insurance?

This kind of mandatory insurance covers employer’s liability for causation of harm to life and health of an employees during fulfillment of his/her job (work) duties in the volume, stipulated by the legislation of the Kyrgyz Republic.

Agreement of mandatory insurance has to be concluded by employers, with average list number of employees up to 50 persons starting from January 1, 2013.

Insured event

Insured event if the accident, happened to an employee (employees) during fulfilment of his/her (their) job (work) duties as a result of impact of harmful and (or) dangerous production factor, in consequence of which professional diseases, permanent (constant) disability or death of an employee took place.

Order of the harm extend (insurance payout) determination under the agreement of mandatory insurance is determined in accordance with requirements of the effective labor legislation of the Kyrgyz Republic.

Sum insured

Sum insured is established at the amount of not less than annual payroll of employees, working under the labor agreement (contract). Sum insured for one employees is fixed in the amount of not less than annual payroll of this employees.

The sums insured established by the agreement of mandatory insurance are the maximum liability limit of the Insurer.

Insurance premium

Annual insurance premium under the agreement is equal to sum of annual insurance premiums for all categories of the enterprise employees.

Annual insurance premium by category of personnel (production, administration and management, and auxiliary) is equal to product of insurance tariff for the respective class of professional risk and the annual payroll for the respective category of personnel, and chosen quantity of annual payrolls, and correction coefficient to the insurance tariff).

 

Minimal rates of insurance tariffs for production personnel by classes of professional risk

Classes of professional risk	Minimal insurance tariffs in %
Mineral resource industry	0,47
Hotels and restaurants	0,12
Public health and social services rendering	0,07
Manufacturing industry	0,19
Education	0,02
Real estate business, lease and rendering of services to customers	0,07
Rendering of municipal, social and personal services	0,08
Electricity generation, gas and water production	0,15
Fishery, fish breeding	0,21
Farming, hunting and forestry management	0,21
Construction	0,14
Trade, repair of automobiles, domestic goods and personal demand items	0,11
Transportation and communication	0,08
Finance activities	0,06

 

 For all the types of professional risks

Classes of professional risk	Minimal insurance tariffs in %
Administrational and management personnel	0,03
Auxiliary personnel	0,12

Insurance tariffs are minimal, and the insurance organization is entitled to set higher tariffs for the enterprise by agreement with employer. Minimal insurance tariffs are applicable for enterprises with high level of work safety system. Maximal limits of tariffs are not established due to presence of competitive environment.

As a basis for premium calculation an annual payroll for each category of personnel is used.

By conclusion of an insurance agreement with sum insured higher than annual payroll the following correction coefficients to the insurance tariff are applied:

Quantity of payrolls applicable for setting of the sum insured under the insurance agreement	Correction coefficient to the insured tariff
1	1,00
2	1,84
3	2,63
4	3,39
5	4,13
6	4,85
7	5,55
8	6,25
9	6,93
10	7,60
11	8,27
12	8,93
13	9,58
14	10,23
15	10,87
16	11,50
17	12,13
18	12,76
19	13,38
20	14,00

By conclusion of the insurance agreement for the term lesser than twelve months, the following extends of insurance premiums are set:

Insurance term	Amount of the Insurance premium (in percentage from annual insurance premium)
Up to 1 month inclusive	20
From 1 to 2 months inclusive	30
From 2 to 3 months inclusive	40
From 3 to 4 months inclusive	50
From 4 to 5 months inclusive	60
From 5 to 6 months inclusive	70
From 6 to 7 months inclusive	75
From 7 to 8 months inclusive	80
From 8 to 9 months inclusive	85
From 9 to 10 months inclusive	90
From 10 to 11 months inclusive	95
Over 11 months	100

Agreement validity period

Insurance agreement is concluded in written by means of insurance policy issue for the term of not more than twelve months.

Why exactly we:

• “Ingosstrakh” exists 22 years in the market;
• “Ingosstrakh” is annually recognized as leader of insurance among other companies;
• “Ingosstrakh” accomplished payments in the shortest possible time.