The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Can I receive an insurance payout for a claim arising from a road traffic accident from the temporary administration of an insurance company?
According to paragraph 6 of Article 56 of the Law of the Republic of Kazakhstan "On Insurance Activities" (hereinafter referred to as the Insurance Law), during its operation, the temporary administration of an insurance (reinsurance) organization is not entitled to carry out expenditure transactions, except in cases provided for in paragraph 3 of Article 55 of this Law.
However, in accordance with paragraphs 1 and 2 of Article 15 of the Law of the Republic of Kazakhstan "On the Insurance Payments Guarantee Fund", the right of a creditor to make a claim to the Fund for a guarantee payment arises from the date the authorized body issues a decision to revoke the license of a participating insurance company and appoint a temporary administration.
Creditors are entitled to receive guarantee payments in the following cases:
For all insured events that occurred before the authorized body made the decision to revoke the license of the participating insurance company and appoint a temporary administration, under insurance contracts where the liquidated insurance company either unlawfully denied (in full or in part) or failed to make the insurance payment in full;
For insured events that occurred in the period from the date the authorized body made the decision to revoke the license of the participating insurance company and appoint a temporary administration, until the date of transfer (acceptance) of the insurance portfolio of the liquidated insurance (reinsurance) organization, in the manner prescribed by the Law of the Republic of Kazakhstan "On Insurance Activities";
For insured events reported after the liquidation of the insurance (reinsurance) organization, where the obligations were not included in the transferred insurance portfolio of the liquidated insurance (reinsurance) company.
If a creditor obtains the right to claim from the Fund under the grounds provided in subparagraphs 1) and 2) of the second part of paragraph 1 of this article, the creditor may, within the period from the date the authorized body issued the decision to revoke the license of the participating insurance company and appoint a temporary administration, until two months after the court decision on the compulsory liquidation of the participating insurance company enters into legal force, apply to the Insurance Payments Guarantee Fund with a written request for a guarantee payment.
Thus, if an insured event occurs due to a road traffic accident under mandatory auto insurance during the period of temporary administration and within two months after the court decision on compulsory liquidation of the insurance company enters into legal force, it is possible to submit a written request to the Fund for a guarantee payment.
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