On compulsory civil liability insurance of audit organizations

Official source: Adilet / https://adilet.zan.kz/rus/docs/Z030000440_ The relevance of the editorial office has been verified: 2026-06-21.

CONTENTS

Footnote. The title was amended by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan N 139). Footnote. According to the text, the words “auditors and”, “auditor or”, “auditor and”, “auditor or”, “auditor or”, “auditors carrying out audit activities as an individual entrepreneur, and”, “auditors and”, “auditors and” are excluded by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan No. 139).

This Law regulates public relations arising in connection with compulsory civil liability insurance of audit organizations and establishes the legal, economic and organizational basis for its implementation.

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

This Law uses the following basic concepts:

civil liability of the audit organization - the obligation of the audit organization established by the civil legislation of the Republic of Kazakhstan to compensate for property damage caused to the audited entities during the audit;
audited entity - a legal entity that has entered into an audit agreement with an audit organization;

Note FROM! Article 1 is to be supplemented with subparagraph 2-1) in accordance with the Law of January 16, 2026 No. 259-VIII (to be enforced from January 1, 2027).

beneficiary - a person who, in accordance with this Law, is the recipient of the insurance payment;
insured event - an event upon the occurrence of which the contract of compulsory insurance of civil liability of the audit organization provides for the implementation of an insurance payment to the insured (beneficiary);

Note FROM! Subparagraph 5) is provided for exclusion by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to be enforced from January 1, 2027).

insurance ombudsman - an individual independent in his activities who resolves disagreements between participants in the insurance market in accordance with the Law of the Republic of Kazakhstan “On Insurance Activities”;
sum insured - the amount of money for which the insurance object is insured and which represents the maximum amount of liability of the insurer upon the occurrence of an insured event;
insurance premium - the amount of money that the policyholder is obliged to pay to the insurer for the latter’s acceptance of the obligation to make an insurance payment to the policyholder (beneficiary) in the amount determined by the contract of compulsory civil liability insurance of the audit organization;
insurance payment - the amount of money paid by the insurer to the policyholder (beneficiary) within the limits of the insured amount upon the occurrence of an insured event;
insurer - a legal entity registered as an insurance organization and licensed to carry out insurance activities, obligated, upon the occurrence of an insured event, to make an insurance payment to the insured or another person in whose favor the contract was concluded (beneficiary), within the limits of the insurance amount determined by the contract;
policyholder - an audit organization that has entered into an agreement with the insurer for compulsory insurance of civil liability of the audit organization;
deductible – exemption of the insurer from compensation for damage not exceeding a certain amount.

Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated July 2, 2018 No. 166-VI (shall be brought into force ten calendar days after the day of its first official publication).

Article 2. Legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of audit organizations

The legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of audit organizations is based on the Constitution of the Republic of Kazakhstan and consists of the Civil Code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.
If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, then the rules of the international treaty apply.
The provisions of this Law applied to the insurer, including the insurance organization, apply to branches of non-resident insurance organizations of the Republic of Kazakhstan opened on the territory of the Republic of Kazakhstan.

Footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 01/02/2021 No. 399-VI (enters into force from 12/16/2020).

Article 3. Object of compulsory insurance of civil liability of audit organizations

The object of compulsory civil liability insurance of audit organizations (hereinafter referred to as compulsory liability insurance of audit organizations) is the property interest of the audit organization associated with its obligation, established by the civil legislation of the Republic of Kazakhstan, to compensate for property damage caused to audited entities during the audit.

Footnote. Article 3 was amended by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan N 139).

Article 4. Main goals, principles and objectives of compulsory liability insurance of audit organizations

Footnote. The title of Article 4 is as amended by the Law of the Republic of Kazakhstan dated June 30, 2025 No. 205-VIII (put into effect upon expiration of sixty calendar days after the day of its first official publication).

The main purpose of compulsory liability insurance of audit organizations is to ensure the protection of the property interests of audited entities that suffered property damage during an audit by an audit organization, through insurance payments.
The main principles of compulsory liability insurance of audit organizations are:

carrying out the activities of audit organizations whose liability is insured under a compulsory liability insurance agreement for audit organizations;

ensuring that the parties fulfill their obligations under the contract of compulsory liability insurance of audit organizations.

The main objectives of compulsory carrier liability insurance are:

ensuring compensation for harm caused to the life, health and (or) property of passengers during their transportation;
protection of the rights and legitimate interests of passengers whose life, health and (or) property were harmed during their transportation.

Footnote. Article 4 as amended by the laws of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be brought into force upon the expiration of ten calendar days after the day of its first official publication); dated 30.06.2025 No. 205-VIII (shall be introduced into effect upon the expiration of sixty calendar days after the date of its first official publication).

Article 4-1. Features of compulsory liability insurance of audit organizations

Excluded by the Law of the Republic of Kazakhstan dated April 27, 2015 No. 311-V (shall be brought into force ten calendar days after the day of its first official publication).
Activities aimed at limiting or eliminating competition, providing or obtaining unjustified advantages in concluding contracts for compulsory liability insurance of audit organizations by some insurers over others, or infringing on the rights and legitimate interests of policyholders are not permitted.

Footnote. The Law is supplemented by Article 4-1 in accordance with the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV; as amended by the Law of the Republic of Kazakhstan dated April 27, 2015 No. 311-V (shall be brought into force ten calendar days after the day of its first official publication).

Article 5. Persons whose civil liability is subject to compulsory insurance

The civil liability of audit organizations that have received a license to carry out auditing activities in accordance with the procedure established by the legislation of the Republic of Kazakhstan is subject to compulsory insurance.
The conclusion by an audit organization of a contract of voluntary insurance of its civil liability related to the implementation of professional activities does not relieve it of the obligation to conclude a contract of compulsory liability insurance of audit organizations.

Footnote. Article 5 was amended by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan N 139).

Article 6. Inadmissibility of carrying out the activities of an audit organization without concluding a contract of compulsory liability insurance of audit organizations

An audit organization has no right to carry out audit activities without concluding a contract of compulsory liability insurance for audit organizations.
An audit organization operating without concluding a contract of compulsory liability insurance of audit organizations bears the liability provided for by the laws of the Republic of Kazakhstan.

Footnote. Article 6 was amended by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan N 139).

Article 7. State supervision and control in the field of compulsory liability insurance of audit organizations

State supervision and control over the activities of insurance organizations are carried out by the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body) in accordance with the legislation of the Republic of Kazakhstan.
State control over the fulfillment by audit organizations of the requirements of this Law in terms of the mandatory conclusion by them of a compulsory liability insurance agreement for audit organizations, and the adoption of measures against audit organizations that violate this requirement, is assigned in accordance with this Law to the relevant authorized state body within its competence established by the legislative acts of the Republic of Kazakhstan.

Footnote. Article 7 as amended by the laws of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be brought into force after ten calendar days after its first official publication); dated 07/03/2019 No. 262-VI (effective from 01/01/2020). Note FROM! Article 7-1 is amended by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to be enforced from January 1, 2027).

Article 7-1. Information interaction

The authorized state body, prosecutorial authorities, other state bodies and organizations that have information necessary to confirm the occurrence of an insured event and its consequences are obliged to provide this information to the insurer, policyholder (beneficiary), and insurance ombudsman upon their application.

Footnote. Chapter 1 is supplemented by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated July 2, 2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Chapter 2. Compulsory insurance contract

responsibility of audit organizations

Article 8. Contract of compulsory liability insurance of audit organizations, procedure for its conclusion

Compulsory liability insurance of audit organizations is carried out on the basis of an agreement concluded in accordance with this Law and the Civil Code of the Republic of Kazakhstan between the insurer and the insured in favor of the audited entity, whose property interests may be harmed during the audit.
The contract of compulsory liability insurance of audit organizations provides for the implementation of insurance payments for obligations arising as a result of damage to the audited entities during the audit by the insured, with the exception of compensation for moral damage, lost profits and payment of penalties.
The contract of compulsory liability insurance of audit organizations is concluded only with an insurer that has a license to carry out activities for this type of compulsory insurance. The conclusion of such an agreement for the said insurer is mandatory, except for cases provided for by the legislative acts of the Republic of Kazakhstan.
The contract of compulsory liability insurance of audit organizations is concluded by issuing an insurance policy in electronic form by the insurer.

The insurer bears responsibility for the incompleteness of the conditions to be specified in the contract of compulsory liability insurance of audit organizations. In the event of a dispute arising under a compulsory liability insurance agreement for auditing organizations due to the incompleteness of some of its terms, the dispute is resolved in favor of the policyholder.

4-1. The contract of compulsory liability insurance of audit organizations, at the request of the policyholder, can be concluded by means of a written application to the insurer or the exchange of electronic information resources between the policyholder and the insurer.

If a contract of compulsory liability insurance of audit organizations is concluded on conditions that worsen the position of the insured or audited entity in comparison with that provided for by this Law, then upon the occurrence of an insured event, the insurer bears obligations to the insured and the audited entity on the terms established by this Law.

Footnote. Article 8 as amended by the laws of the Republic of Kazakhstan dated February 27, 2017 No. 49-VI (shall be brought into force upon the expiration of ten calendar days after the day of its first official publication); dated 07/02/2018 No. 166-VI (effective from 01/01/2019); dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 8-1. Requirements for the insurer and Internet resources when concluding a contract of compulsory liability insurance for audit organizations and settling insured events through the exchange of electronic information resources

When concluding a contract of compulsory liability insurance of audit organizations in electronic form and settling insured events thereunder, an Internet resource and (or) the insurer’s information system are used to exchange electronic information resources between the organization for the formation and maintenance of the database, the insurer and the policyholder (beneficiary).

When submitting an application for concluding a contract of compulsory liability insurance of audit organizations in electronic form and settling an insured event, the policyholder is not required to use specialized software.

On the Internet resource of the organization for the formation and maintenance of the database, there is a link to the Internet resource of the insurance organization, used for concluding contracts for compulsory liability insurance of audit organizations and settling insurance cases in electronic form.

The procedure for the exchange of electronic information resources between the organization for the formation and maintenance of the database and the insurer, the insurer and the insured (beneficiary) is determined by the regulatory legal act of the authorized body.
When concluding a contract of compulsory liability insurance of audit organizations and settling insured events thereon using the insurer’s Internet resource, the insurer is obliged to ensure:

immediate sending to the policyholder of a notice of the conclusion of a compulsory liability insurance contract for audit organizations or refusal to conclude it (indicating the reasons for the refusal) in the form of an electronic message;
notification of the insured (beneficiary) about the main stages of the process of settling the insured event, including refusal to accept documents for settlement (indicating the reasons for the refusal), in the form of an electronic message in the manner determined by the regulatory legal act of the authorized body;
the possibility for the policyholder to check information on the concluded contract of compulsory liability insurance of audit organizations on the Internet resource of the insurance organization;
the ability for the policyholder (beneficiary) to check information on an insured event under a compulsory liability insurance agreement for audit organizations on the insurance organization’s Internet resource;
storage of the contract of compulsory liability insurance of audit organizations in electronic form and information on the insured event on it, ensuring round-the-clock access for the insured (beneficiary) to the insurer’s Internet resource;
the opportunity for the policyholder (beneficiary) to create and send to the insurer information in electronic form (applications, notifications and (or) other documents, information) necessary for:

concluding a contract of compulsory liability insurance for audit organizations;

early termination of the contract of compulsory liability insurance of audit organizations;

notifications about the occurrence of an insured event (an event considered as an insured event);

determining the amount of harm caused;

receiving insurance payment;

settlement of disputes arising from the contract of compulsory liability insurance of audit organizations, taking into account the features provided for in Article 19-1 of this Law.

Notification of the conclusion of a compulsory liability insurance agreement for audit organizations and the settlement of insured events under it is sent from the organization for the formation and maintenance of the database.

Requirements for the procedure and content of notifications on the conclusion of a compulsory liability insurance agreement for audit organizations and the settlement of insured events under it are determined by the authorized body.

When concluding a contract of compulsory liability insurance of audit organizations through the exchange of electronic information resources, the insurance contract is considered concluded by the policyholder from the date of payment by the insured of the insurance premium (the first insurance premium in the case of paying the insurance premium in installments), unless otherwise provided by the contract of compulsory liability insurance of audit organizations.
When concluding a contract of compulsory liability insurance of audit organizations through the exchange of electronic information resources, the policyholder pays the insurance premium (the first insurance premium in the case of paying the insurance premium in installments) after familiarizing himself with the insurance conditions provided for by this Law, thereby confirming his consent to conclude an accession agreement on the terms proposed to him.
The insurer provides the opportunity to conclude compulsory liability insurance contracts for audit organizations and settle insured events thereon using the insurer’s Internet resource around the clock.
The activity of insurance agents in concluding contracts for compulsory liability insurance of audit organizations is not permitted.

Footnote. Chapter 2 is supplemented by Article 8-1 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (to be enforced from 01/01/2019); as amended by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (to come into effect from January 1, 2024).

Article 9. Validity of the contract of compulsory liability insurance of audit organizations

Unless otherwise provided by the contract of compulsory liability insurance of audit organizations, it comes into force and becomes binding on the parties from the moment the policyholder pays the insurance premium, and if it is paid in installments, the first insurance premium.
The contract of compulsory liability insurance of audit organizations is concluded for a period of twelve months from the date of its entry into force.

The validity period of insurance coverage coincides with the validity period of the compulsory liability insurance contract for audit organizations.

The validity of the contract of compulsory liability insurance of audit organizations is limited to the territory of the Republic of Kazakhstan, unless otherwise provided for in the contract of compulsory liability insurance of audit organizations.

Article 10. Termination of the contract of compulsory liability insurance of audit organizations

The contract of compulsory liability insurance of audit organizations is terminated in the following cases:

expiration of the contract;
early termination of the contract;
the insurer makes an insurance payment (insurance payments) in the amount of the insured amount determined in the contract of compulsory liability insurance of audit organizations.

Article 11. Early termination of the contract of compulsory liability insurance of audit organizations

The contract of compulsory liability insurance of audit organizations is terminated early in the manner and in cases provided for by the civil legislation of the Republic of Kazakhstan.
If the early termination of a contract of compulsory liability insurance of audit organizations is caused by failure to comply with its terms through the fault of the insurer, the latter is obliged to return to the insured the insurance premium or insurance premiums paid in full. In other cases of early termination of a contract of compulsory liability insurance for audit organizations, the insurer has the right to a portion of the insurance premium in proportion to the time during which the insurance was in force.

Article 12. Invalidity of the contract of compulsory liability insurance of audit organizations

The conditions, grounds and consequences of recognizing the contract of compulsory liability insurance of audit organizations as invalid are determined in accordance with the civil legislation of the Republic of Kazakhstan.

Article 13. Rights and obligations of the policyholder

The policyholder has the right:

demand from the insurer an explanation of the conditions of compulsory liability insurance of audit organizations, their rights and obligations under the contract of compulsory liability insurance of audit organizations;
receive insurance payment in the manner and under the conditions provided for by this Law;

2-1) get acquainted with the results of assessing the amount of damage caused and calculations of the amount of insurance payment made by the insurer (including through the insurer’s Internet resource);

Note FROM! Subparagraph 3) is provided for in the wording of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to come into effect from January 1, 2027).

contact the insurer, taking into account the specifics provided for in Article 19-1 of this Law, or the insurance ombudsman or the court to resolve issues arising from the contract of compulsory liability insurance of audit organizations;

Note FROM! Subparagraph 4) is provided for in the wording of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to come into force from January 1, 2027).

send the application and attached documents to the insurance ombudsman (directly to the insurance ombudsman, including through its Internet resource, or through the insurer, including through its branch, representative office, other separate structural unit, Internet resource) taking into account the features provided for by the Law Republic of Kazakhstan "On insurance activities".

The contract of compulsory liability insurance of audit organizations may also provide for other rights of the insured that do not contradict the legislative acts of the Republic of Kazakhstan.

The policyholder is obliged:

pay the insurance premium in the amount, manner and terms established by the contract of compulsory liability insurance of audit organizations;
when concluding a contract of compulsory liability insurance of audit organizations, provide the insurer with the information necessary to conclude a contract of compulsory liability insurance of audit organizations;
immediately, but no later than five working days, as he became aware of the filing of a demand or statement of claim for compensation for damage caused as a result of his audit, notify the insurer about this in an accessible way (orally, in writing);
provide the insurer with all information and documentation available to him, allowing him to judge the causes, course and consequences of the event, upon the occurrence of which the insured becomes obligated to compensate for the damage caused, as well as the nature and extent of the damage caused;
provide the insurer with the opportunity to participate in the settlement of issues related to the audited entity’s claims for compensation for harm;
take measures to prevent or reduce losses from an insured event;
ensure the transfer to the insurer of the right of recourse to the person responsible for the occurrence of the insured event;
notify the person to whom the insurer provided audit services about the insurance of his civil liability for compensation for damage caused to the property interests of the audited entities during the audit.

The contract of compulsory liability insurance of audit organizations may also provide for other obligations of the insured that do not contradict the legislative acts of the Republic of Kazakhstan.

Footnote. Article 13 as amended by the laws of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication); dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 14. Rights and obligations of the insurer

The insurer has the right:

when concluding a contract of compulsory liability insurance of audit organizations, require the insurer to provide information about previous contracts of compulsory liability insurance of audit organizations, insured events, insurance payments and other information necessary for concluding a contract of compulsory liability insurance of audit organizations;
request, in the manner established by the legislation of the Republic of Kazakhstan, from the relevant government bodies and organizations, based on their competence, documents and information related to the fact of the occurrence of an insured event and determination of the amount of damage caused as a result of the occurrence of an insured event;
take part in resolving issues related to the claims of the audited entities for compensation for damage caused by the insured as a result of its performance of duties related to the audit;
make a right of recourse against the person responsible for causing harm in cases provided for in Article 20 of this Law;
refuse to make insurance payment in whole or in part on the grounds provided for in Article 21 of this Law.

The contract of compulsory liability insurance of audit organizations may also provide for other rights of the insurer that do not contradict the legislative acts of the Republic of Kazakhstan.

The insurer is obliged:

familiarize the policyholder with the terms of compulsory liability insurance of audit organizations, explain his rights and obligations arising from the contract of compulsory liability insurance of audit organizations;

1-1) upon notification of an insured event (an event considered as an insured event) that occurred during the period of insurance protection under a compulsory liability insurance agreement for audit organizations, immediately register it and submit information on this insured event (an event considered as an insured event) to the organization for the formation and maintenance of a database in accordance with the regulatory legal act of the authorized body;

upon early termination of the contract of compulsory liability insurance of audit organizations in the cases and in the manner established by the civil legislation of the Republic of Kazakhstan, return the insurance premium to the policyholder in full or in part;

2-1) if there are insufficient documents confirming the occurrence of an insured event and the amount of damage to be compensated by the insurer, within three working days from the date of receipt, inform the applicant about this, indicating the full list of missing and (or) incorrectly executed documents;

upon the occurrence of an insured event, make an insurance payment in the manner and under the conditions provided for by this Law;
reimburse the policyholder for expenses incurred by him in order to prevent or reduce losses in the event of an insured event;
ensure the secrecy of insurance;
upon receipt of an application from the policyholder (beneficiary), consider the requirements of the policyholder (beneficiary) and provide a written response indicating the further procedure for resolving the dispute within five working days;

Note FROM! Subparagraph 7) is provided for in the wording of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to come into effect from January 1, 2027).

upon receipt from the policyholder (beneficiary) of an application sent to the insurance ombudsman, redirect this application, as well as the documents attached to it, to the insurance ombudsman within three working days from the date of receipt.

The contract of compulsory liability insurance of audit organizations may also provide for other obligations of the insurer that do not contradict the legislative acts of the Republic of Kazakhstan.

Footnote. Article 14 as amended by the laws of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication); dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Chapter 3. Sum insured and insurance premium

Article 15. Sum insured

The amount of the insured amount is established by agreement of the parties in the contract of compulsory liability insurance of audit organizations, but the amount of the insured amount must be no less than:

excluded by the Law of the Republic of Kazakhstan dated May 5, 2006 N 139 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan N 139);
10,000 times the monthly calculation indicator established by the law on the republican budget for the corresponding financial year, as of the date of conclusion of the contract under the compulsory liability insurance agreement for audit organizations concluded with the audit organization.

Article 16. Amount of insurance premium

The amount of the insurance premium is established by agreement of the parties in the contract of compulsory liability insurance of audit organizations, but the amount of the insurance premium should not exceed 4.5 percent of the insured amount established in the contract of compulsory liability insurance of audit organizations.

Article 17. Procedure and terms for payment of insurance premium

The procedure and terms for payment of the insurance premium under the contract of compulsory liability insurance of audit organizations are established by agreement of the parties.
Unless otherwise provided for in the contract of compulsory liability insurance of audit organizations, then for late payment of the next insurance premium, the policyholder is obliged to pay a penalty to the insurer as for unlawful use of other people’s money in the manner and amount established by the Civil Code of the Republic of Kazakhstan.
The insurer provides the opportunity to pay the insurance premium by non-cash method through the insurer’s Internet resource.

Footnote. Article 17 as amended by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be enforced from 01/01/2019).

Chapter 4. Insured event and insurance payment

Article 18. Determination of an insured event and the amount of insurance payment

An insured event under a compulsory liability insurance agreement for audit organizations is recognized as the occurrence of civil liability of the insured for compensation for damage caused to the property interests of the audited entities during the audit.
An insured event is considered to have occurred from the date the court decision on compensation for damage caused by the insured comes into legal force or the insurer recognizes the claims of the audited entities for compensation for damage as justified and the insurer agrees to recognize the insured’s claims.
The amount of the insurance payment is determined by the insurer based on the amount of the claim of the audited entity or a court decision that has entered into legal force on compensation for damage caused, taking into account the provisions of paragraph 2 Article 8 of this Law.
Expenses incurred by the insured for the purpose of preventing or reducing losses shall be reimbursed by the insurer if such expenses were necessary or incurred to carry out the instructions of the insurer, even if the appropriate measures were unsuccessful.

Such expenses are reimbursed in actual amounts, however, so that the total amount of insurance payment and compensation for expenses does not exceed the insured amount provided for in the contract of compulsory liability insurance of audit organizations, if the expenses arose as a result of the execution by the insured of the instructions of the insurer, they are reimbursed in full, regardless of the insured amount.

The amount of the deductible for each insured event is established by agreement of the parties, but the amount of the deductible should not exceed five percent of the insured amount established in the contract of compulsory liability insurance of audit organizations.

In cases where the amount of damage caused exceeds the established deductible amount, insurance payment is made in full.

Article 19. Conditions and procedure for making insurance payments

The requirement for insurance payment to the insurer is made by the policyholder or the audited entity in writing, including through the insurer’s Internet resource in accordance with the regulatory legal act of the authorized body, with the attachment of documents necessary for making the insurance payment.

At the request of the insurer, the applicant is obliged to submit original documents to the insurer necessary for making insurance payment, with the exception of documents available in electronic form in databases and (or) information systems of government bodies to which the insurer has access.

The following must be attached to the application for insurance payment:

excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (shall be brought into force ten calendar days after the day of its first official publication);
the claim of the audited entity for compensation for damage recognized by the insured with the attachment of documents confirming the damage caused and its amount, or a court decision that has entered into legal force for compensation for damage caused by the insured during the audit;
power of attorney issued to a representative of a legal entity;
a notarized copy of the audit agreement concluded between the policyholder and the audited entity;
documents (if available) confirming the costs associated with taking measures to prevent and reduce the amount of harm;
a copy of the audit report with the consent of the audited entity.

The insurer that accepted the documents is obliged to issue the applicant a certificate indicating the full list of documents submitted and the date of their acceptance.

If the policyholder (beneficiary) sends a claim for insurance payment in electronic form, the insurer can provide him with this certificate in electronic form.

When making an insurance payment, the insurer has no right to require the beneficiary to accept conditions limiting his right of claim against the insurer.
The beneficiary is the audited entity, which was damaged by the insured as a result of the audit, and in the event of reorganization of the audited entity, its legal successor.

The beneficiary may also be the policyholder or another person who has compensated the audited entity (its legal successor) for the damage caused within the scope of the insurer's liability established by this Law, and has received the right to reimbursement of its expenses from the insurer.

Insurance payment is made by the insurer no later than seven working days from the date of receipt of the documents provided for in paragraph 2 of this article.
In cases where the amount of the insurance payment is disputed by the parties to the contract of compulsory liability insurance of audit organizations or by the beneficiary, the insurer is obliged to make the insurance payment in that part that is not disputed by any of these persons within the period established by paragraph 6 of this article.

The disputed part of the insurance payment must be paid by the insurer within three working days from the date of conclusion of the settlement agreement and its approval by the court or from the day the court decision on this dispute enters into legal force, if the court decision is not immediately enforced.

A claim for insurance payment for damage caused during the period of validity of the contract of compulsory liability insurance of audit organizations may be presented to the insurer within three years from the date of the occurrence of the insured event.
In case of untimely payment of insurance payment, the insurer is obliged to pay a penalty to the beneficiary in the manner and amount established by the Civil Code of the Republic of Kazakhstan.

Footnote. Article 19 as amended by the laws of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (the order of enforcement see Art. 2); dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication). Note FROM! Article 19-1 is provided for as amended by the Law of the Republic of Kazakhstan dated 01/16/2026 No. 259-VIII (shall be enforced from 01/01/2027).

Article 19-1. Peculiarities of settlement of disputes regarding compulsory insurance of civil liability** of audit organizations**

1. If there is a dispute arising from the contract of compulsory liability insurance of auditing organizations, the insured (beneficiary) has the right:

send to the insurer (including through a branch, representative office, Internet resources of the insurer) a written application indicating the requirements and attaching documents confirming its requirements, or send an application to the insurance ombudsman (directly to the insurance ombudsman, including through its Internet resource, or through the insurer, including through its branch, representative office, other separate structural unit, Internet resource) or to the court to resolve disputes arising from the contract compulsory liability insurance of audit organizations, taking into account the features provided for by the Law of the Republic of Kazakhstan “On Insurance Activities”.

The insurer, upon receipt of an application from the policyholder (beneficiary), within five working days, considers and provides a written response indicating the further procedure for resolving the dispute.
If the policyholder (beneficiary) applies to the insurance ombudsman, the insurer is obliged, at the request of the policyholder (beneficiary), the insurance ombudsman, to submit documents related to the consideration and resolution of the dispute within three working days from the date of receipt of the request.

Footnote. Chapter 4 is supplemented by Article 19-1 in accordance with the Law of the Republic of Kazakhstan dated July 2, 2018 No. 166-VI (shall be enforced upon the expiration of ten calendar days after the day of its first official publication); as amended by the Law of the Republic of Kazakhstan dated July 12, 2022 No. 138-VII (shall be brought into force sixty calendar days after the day of its first official publication).

Article 20. Right of recourse against the person who caused the harm

The insurer that has made the insurance payment has the right to claim back against the policyholder within the limits of the insurance payment made in the following cases:

intentional actions of the policyholder aimed at the occurrence of an insured event or contributing to its occurrence;
commission by the insured of actions recognized in the manner established by the legislative acts of the Republic of Kazakhstan as intentional criminal or administrative offenses that are in a causal connection with the insured event;
deliberate failure by the policyholder to take measures to reduce losses in the event of an insured event;
communication by the insured to the insurer of knowingly false information about the object of insurance, the insured risk, the insured event and its consequences;
refusal by the policyholder of his right of claim against the person responsible for the occurrence of the insured event, as well as refusal to transfer to the insurer the documents necessary to transfer the right of claim.

The insurer who has made the insurance payment shall, within the limits of the amount paid, receive the right of recourse, which the insured has against the person responsible for the losses compensated by the insurer as a result of the insurance.

Footnote. Article 20 as amended by the Law of the Republic of Kazakhstan dated 07/03/2014 No. 227-V (enters into force from 01/01/2015).

Article 21. Grounds for exemption of the insurer from making insurance payments

The insurer has the right to fully or partially refuse to make an insurance payment if the insured event occurred as a result of:

intentional actions of the audited entity aimed at the occurrence of an insured event or contributing to its occurrence;
actions of the audited entity, recognized in the manner established by the legislative acts of the Republic of Kazakhstan, as intentional criminal or administrative offenses that are in a causal connection with the insured event.

The following may also be grounds for the insurer’s refusal to make an insurance payment:

receipt by the policyholder of appropriate compensation for the loss from the person responsible for causing the loss;
failure to notify or untimely notification of the insurer about the occurrence of an insured event, except for the cases established by this Law;
obstruction by the policyholder of the insurer in investigating the circumstances of the occurrence of the insured event and in establishing the amount of damage caused;
violation by the audited entity of the obligations provided for in the audit agreement;
implementation by the policyholder of activities that do not correspond to the functions and responsibilities of the audit organization, defined by the legislation of the Republic of Kazakhstan on auditing activities;
provision by the audited entity to the policyholder of incomplete and (or) unreliable documentation and other information necessary for the audit.

Failure to notify or untimely notification of the insurer about the occurrence of an insured event gives him the right to refuse insurance payment, unless it is proven that the insurer learned about the occurrence of the insured event in a timely manner or the insurer’s lack of information about this could not affect his obligation to make an insurance payment.

Note FROM! Clause 4 is provided for in the wording of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (to come into effect from January 1, 2027).

If there are grounds for refusal of insurance payment, the insurer is obliged, within seven working days from the date of receipt of the documents provided for in Article 19 of this Law, to send to the person who submitted the application for insurance payment an appropriate decision on full or partial refusal of insurance payment in writing with a reasoned justification of the reasons for the refusal and notification of the right of the policyholder (insured, beneficiary) to contact the insurance ombudsman to resolve disagreements, taking into account the specifics of the legislation of the Republic of Kazakhstan.
The insurer has no right to refuse insurance payment on grounds not provided for in this article.

Footnote. Article 21 as amended by the laws of the Republic of Kazakhstan dated 07/03/2014 No. 227-V (enters into force from 01/01/2015); dated July 12, 2022 No. 138-VII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Chapter 5. Final provisions

Article 22. Dispute resolution procedure

Disputes arising from the contract of compulsory liability insurance of audit organizations are considered in the manner established by the legislation of the Republic of Kazakhstan.

Article 23. Liability for violation of the legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of audit organizations

Persons guilty of violating the legislation of the Republic of Kazakhstan on compulsory insurance of civil liability of audit organizations are liable in accordance with the laws of the Republic of Kazakhstan.

President Republic of Kazakhstan