Compulsory insurance
Compulsory environmental insurance
An oil product spill, a release of pollutants or an accident at treatment facilities can cause damage to the environment, people's health and other people's property. Kazakhstan law requires companies engaged in environmentally hazardous activities to insure their liability for such damage. Generate will help you calculate the premium and compare offers from licensed insurance companies.
Who must be insured
The obligation applies to legal entities and sole proprietors carrying out environmentally hazardous types of business and other activities. The list of such activities is approved by the authorised environmental protection body. As a rule, it includes extraction and processing industries, energy, the chemical industry, waste management and other activities with a risk of accidental pollution.
The contract is concluded for a term of at least 12 months and is valid in the Republic of Kazakhstan. If you are not sure whether your company's activity is classed as environmentally hazardous, check your main and additional activities against the approved list or contact Generate's specialists: we will help you clarify this before the contract is signed and find an insurer that works with your industry.
What the policy covers
The insured event is environmental damage caused by accidental pollution of the environment. The insurer compensates the damage within the sum insured.
What is usually covered
- costs of eliminating the consequences of accidental pollution;
- harm to the life and health of third parties;
- damage to the property of individuals and organisations;
- other expenses provided for by the contract and the insurance rules.
What is usually not covered
- planned emissions and discharges within permits;
- intentional acts of the policyholder;
- events outside the contract period;
- other exclusions established by law and the contract.
Sum insured and rate
The sum insured is agreed by the parties but cannot be lower than the statutory minimum. The minimum depends only on the type of policyholder. The premium is calculated at a rate within the range of 0.76% to 2.65% of the sum insured; the law does not set any adjustment factors.
| Policyholder | Minimum amount | In tenge (MCI 4 325 ₸) | Premium at the minimum amount |
|---|---|---|---|
| Legal entity | 65 000 MCI | 281 125 000 ₸ | from 2 136 550 ₸ to 7 449 812.5 ₸ |
| Sole proprietor | 5 000 MCI | 21 625 000 ₸ | from 164 350 ₸ to 573 062.5 ₸ |
In the Generate calculator you choose the type of policyholder and the level of environmental risk: minimum (0.76%), medium (1.7%) or maximum (2.65%). This scale gives you a price guide, while the specific rate within the statutory range is set by the insurer after assessing your activities.
Important: the minimum amount is set in MCI and converted into tenge at the value on the contract date. When renewing the policy in a new year, check that the amount matches the current MCI.
How to choose the amount and risk level
The minimum amount for a legal entity is quite high, but for large industrial sites even this may be less than the possible damage from a serious accident. Any amount above the limit is borne by the company, so businesses with large facilities often consider cover above the minimum. For sole proprietors and small operations, the statutory minimum is usually sufficient.
The risk level, and therefore the rate, depends on the nature of the activity: which substances are used and stored, the volume of emissions and waste, how close the facility is to residential areas and water bodies, and how accident prevention systems are organised. The more detail you give about your operations, the more accurately the insurer will assess the risk and the better your chances of a rate closer to the lower end of the range.
What to check
- whether your activity is on the list of environmentally hazardous activities;
- that the sum insured meets the minimum for a legal entity or sole proprietor;
- the justification of the risk level and the final rate;
- the list of exclusions and the procedure for determining the amount of damage;
- the contract term — at least 12 months with no gaps between policies.
How to apply
Calculation on the Generate website
Choose the type of policyholder and the level of environmental risk to see an indicative premium.
Comparing offers
We will request terms from several insurance companies and show you the differences in rates and cover.
Signing and payment
You provide information about your activities and facilities, sign the contract and pay the premium.
What to do in the event of an insured event
- Take measures to contain the accident and reduce the damage, and notify the emergency services and regulatory authorities.
- Notify the insurer within the period set in the contract.
- Record the circumstances of the accident: reports, photos, measurement results.
- Collect documents on the amount of environmental damage and on the affected persons.
- Submit the documents to the insurer and wait for the payment decision.
This material is for reference only; the final terms are set by the insurance rules and the contract.
How Generate can help
Generate Insurance Center compares offers from licensed insurers and helps companies meet legal requirements without overpaying. We will select the terms, prepare the documents and support claims settlement in the event of an accident. Calculate your policy online or call: +7 727 225 40-40.