The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Is it possible to cancel an insurance contract and receive a refund of the paid insurance premium?
On the grounds for early termination of an insurance contract:
The grounds for early termination of an insurance contract are regulated by Article 841 of the Civil Code of the Republic of Kazakhstan (hereinafter – CC RK).
According to paragraph 2 of Article 841 CC RK, the policyholder has the right to withdraw from the insurance contract at any time, unless otherwise provided by the laws of the Republic of Kazakhstan or the insurance contract.
In accordance with paragraph 2 of Article 842 CC RK, if the policyholder withdraws from the contract for reasons not related to the circumstances set out in paragraph 1 (first part) and paragraphs 2 and 3 of Article 841, the insurance premium or contributions paid to the insurer are non-refundable, unless otherwise provided by the contract.
If a policyholder who is a natural person withdraws from the insurance contract (except for annuity insurance contracts) within 14 calendar days from the date of its conclusion, the insurer is obligated to return the received insurance premium (contributions) minus:
- the portion of the premium proportional to the time during which the insurance was in effect; and
- expenses related to the termination of the insurance contract, not exceeding 10% of the paid premium.
Additionally, if a natural person withdraws from an insurance contract linked to a loan agreement, due to fulfillment of obligations to the lender (i.e., early loan repayment), the insurer is also obligated to return the insurance premium (or contributions) minus the part proportional to the period of insurance coverage and termination costs (up to 10%).
To terminate an insurance contract, the policyholder must submit a written application to the insurer.
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