Mandatory Environmental Insurance

Mandatory Environmental Insurance

To protect people and the environment from potential harm by enterprises engaged in environmentally dangerous economic and other activities, on December 13, 2005 Kazakhstan has adopted the law “On Mandatory Environmental Insurance”, and the Government Decree approving the list of environmentally hazardous economic and other activities.

Who needs mandatory environmental insurance?

Individuals or legal persons performing environmentally hazardous economic and other activities have no right to carry out their activities without executing a mandatory environmental insurance contract.

Environmentally dangerous activities

Land and Subsurface Use
  1. Technical reclamation of land contaminated with toxic, radioactive and other dangerous harmful substances.
  2. Mining quarry development at the site area of over 25 hectares.
  3. Mining development at the site area of over 25 hectares.
Utilization of water resources
  1. Construction and placement in the water catchment areas of facilities and structures using for industrial purposes potentially dangerous chemical and biological agents and radioactive materials, leading to pollution and contamination of water bodies.
  2. Activities of wastewater treatment plants with a capacity exceeding 150 000 person equivalent.
Petroleum Operations
  1. Placement, storage and use of man-made mineral formations that have a harmful effect on the environment.
  2. Carrying out petroleum operations, including:
    • production of oil and natural gas for commercial purposes;
    • storage of petroleum, petrochemical, or chemical products;
    • activities of oil refineries (excluding enterprises only manufacturing lubricants from crude oil) and gasification plants;
    • operation of pipelines for transportation of gas, oil or chemicals.
  3. Initial smelting of iron and steel.
  4. Manufacture of non-ferrous metals from ore, concentrates or secondary raw materials using metallurgical, chemical or electrolytic processes.
Utilization of nuclear and thermal power
  1. Operation of thermal power plants and other thermal installations with thermal output of 300 megawatts or more.
  2. Operation of nuclear power stations and other nuclear reactors including dismantling or decommissioning of such power stations or reactors (except research installations for production and conversion of fissionable and fertile materials, with maximum capacity not exceeding 1 kilowatt of continuous thermal load*).
  3. Processing of nuclear waste.
  4. Activities in:
    • uranium enrichment and nuclear fuel manufacturing;
    • disposal of nuclear and radioactive waste.

Note: * Nuclear power stations and other nuclear reactors cease to be such an installation where all nuclear fuel and other radioactively contaminated elements have been removed permanently from the installation site.

Impacts on the atmosphere, climate and ozone screen
  1. Carrying out of production processes, followed by emissions of harmful substances (pollutants) hazard class 1 according to the sanitary classification of industrial facilities - more than 1 ton per year, hazard class 2 according to sanitary classification of industrial facilities - more than 50 tons per year.
  2. Import and export of ozone-depleting substances and products contained therein, performance of works using ozone-depleting substances, repair, installation and maintenance of equipment containing ozone-depleting substances.
Hazardous waste management
  1. Destruction, recycling and disposal of hazardous waste.
  2. Proprietary possession of hazardous waste, ownership on the basis of economic control right or operational management or handling.
  3. Transboundary movements of hazardous wastes in connection with fulfillment of obligations of the Republic of Kazakhstan.
Other environmentally dangerous types of economic and other activities
  1. Activities related to the manufacture, sale, use and processing of chemical and biological substances that have harmful effects on the environment.
  2. Aerospace activities, including operation and decommissioning of space-crafts and space facilities.
  3. Activities of military and defense facilities.
  4. Production of genetically modified organisms.
  5. Activities related to microbiological production, including handling and disposal of microorganisms.

What is an insured event?

An insured event is an occurrence of civil liability of the insurer for compensation for harm caused to life, health or property of third parties and the environment as a result of its accidental pollution.

Types of accidental environmental pollution:
  • accident that occurred in the course of performance of environmentally dangerous economic and other activities 
  • emissions into atmosphere and (or) the discharge of harmful substances into water 
  • dispersal of solid, liquid or gaseous pollutants on an area of the earth, or in the depths 
  • formation of odors, noise, vibration, radiation, or electromagnetic, temperature, light or other physical, chemical, biological harmful exposure exceeding current allowable level.

Amounts of sums insured are determined by agreement of the parties:

  1. from 5 000 MCI with an individual who is an individual entrepreneur; 
  2. from 65 000 MCI with a legal entity; 
  3. from 17 000 MCI, if mandatory environmental insurance contract was only executed with regard to civil liability insurance for environmental harm.

Insurance Premium

The amount of insurance premium is established by agreement of the parties, but the amount of insurance premium must be: 

  • for individual entrepreneurs and legal entities from 0,76% to 2,65% of the sum insured;
  • if contract is only executed with regard to civil liability insurance for environmental harm - from 0,59% to 2,05% of the sum insured;

Amount of insurance indemnity?

Insurance indemnity is paid in the amount determined by the insurer based on the amount of claim of the aggrieved person (the beneficiary) or based on the legally effective court decision on compensation for the damage caused.

How to make an order?

Our specialists will prepare an individual insurance program that takes into account your budget, objectives and business specifics.

To do this, please contact us at: +7 (727) 258-18-00 ext. 1063 and mobile: + 7701737 70 72 or leave us your contact details and describe the insurance your organization wants, and OIC Corporate Insurance officers will contact you. Email address for communications:

Contact us and we will be happy to give you more information
Select city
+7 (727) 258 1800
2258 Call is free throughout Kazakhstan
You can send us a message and we will contact you
Need help?