Mandatory Insurance of Civil Liability of Motor Vehicle Owners
Motor Vehicle Owner Civil Liability Insurance (MVO CLI)
What is MVO CLI?
Vehicle owners’ civil liability insurance is providing the aggrieved parties (individuals and organizations) with compensation for damages caused by motor vehicle owners during their operation.
In Kazakhstan, this type of insurance is regulated by a separate law dated 01.07.2003, № 446-II “On Mandatory Motor Vehicle Owners Civil Liability Insurance”.
Why buy a mandatory motor vehicle owner’s CLI Policy?
Any driver may become involved in a traffic accident. Like any mechanism, a car is a source of increased danger; therefore, its owner must be prepared for having to compensate for damage caused to other road users. Every vehicle owner is obliged to insure his/her liability.
Even the most experienced driver on the most reliable car can get into a traffic accident. In Kazakhstan hundreds of thousands of traffic accidents happen each year. In each of these cases the aggrieved parties claim damages.
Benefits of purchasing a policy from OIC:
- Immediate policy subscription and free delivery;
- 24/7 Average Commissioner services;
- Round-the-clock Call Center;
- Direct payment (if you are the affected party, you can receive payment directly at the OIC, without losing time to applying to the insurance company of the party responsible for the traffic accident)
- Payments within up to 7 days;
- Personal payment services in each region.
Additional coverage for responsible drivers!
OIC offers to responsible customers who are not satisfied with the amounts of benefits provided for under MVO CLMI to extend the limit of indemnity. If you become responsible for a traffic accident, you can increase the amount of indemnity payments by purchasing a volunteer CLI with increased liability limits (MVO VLI), along with mandatory CL insurance.
Insurance for Everyone!
Civil liability of vehicle owners - individuals and legal entities of Kazakhstan and foreign citizens and stateless persons is subject to mandatory insurance. Vehicle owner must insure civil liability for all motor vehicles operated by him/her.
To protect oneself from hassle and financial loss, civil liability must be insured by all drivers, especially since the law requires it. In that case all claims of aggrieved parties will be settled by insurance company.
How much will the aggrieved party receive under the MVO VCLO policy?
Amounts of payments under MVO MCLI are established in accordance with the law and is calculated in MCI (monthly calculation index).
If an insured event occurs, the aggrieved party will receive:
1) for harm caused to life or health of each affected person resulting in:
death - 1000 MCI;
establishment of disability:
- Group I – 800 MCI,
- Group II – 600 MCI,
- Group III – 500 MCI;
- Disabled child - 500 MCI;
bodily injury, personal injury or other impairment of health without establishment of disability - in the amount of the actual costs of outpatient and (or) in-patient treatment, but not more than 300 MCI.
Whereas the amount of insurance indemnity for each day of hospital treatment must be at least 10 monthly calculation indices;
2) for damage to property of one aggrieved party – in the amount of damages caused, but not more than 600 MCI;
3) for damage caused at the same time to the property of two or more aggrieved parties – in the amount of damages caused, but not more than 600 MCI per aggrieved party. Total amount of insurance indemnity paid to all aggrieved parties cannot exceed 2000 MCI.
If the limit of the amount of damage exceeds the ceiling of liability, insurance indemnity to each aggrieved party is paid commensurate to the extent of harm caused to its property.
How much does MVO MCLI cost?
Basic insurance premium is used to calculate the annual insurance premium payable at the time of motor vehicle owners’ mandatory civil liability insurance contract execution. Rates are applied thereto depending on:
- Place of registration of the vehicle;
- Vehicle type;
- Age and driving experience of the Policyholder;
- Service life of the vehicle;
- Presence or absence of insured events and claims under the previous contract.
The presence or absence of insurance claims for individuals or companies that insure their motor vehicle owner civil liability over the past periods of the insurance contract.
The cost of MVO MCLI policy is established by the Law of RK and must be the same for all insurance companies. However, when buying a policy from the OIC, car owners receive extra services.