On mutual insurance

Unofficial English summary prepared for informational purposes. Official source: Әділет / adilet.zan.kz. Version checked: 2026-06-20. This is a reference card; in case of discrepancies, the official Kazakh and Russian texts prevail.

Metadata


Act number	№ 163-III
Act type	Law of the RK
Authority	Parliament of the RK
Adoption date	05.07.2006
Last amended	30.06.2025
Status	In force
Әділет identifier	Z060000163_

Scope and relevance

The law sets the legal foundations of mutual insurance and the activity of mutual insurance societies — a non-commercial form of reciprocal property protection for their members. An alternative to commercial insurance as a risk-pooling mechanism.

Official source

Official source: Adilet / https://adilet.zan.kz/rus/docs/Z060000163_ The relevance of the editorial office has been verified: 2026-06-20.

Footnote: Attention users! For ease of use, RCPI has created a table of contents. Footnote. The preamble is excluded by the Law of the Republic of Kazakhstan dated June 30, 2025 No. 205-VIII (shall come into force sixty calendar days after the day of its first official publication).

Chapter 1. GENERAL PROVISIONS

Article 1. Basic concepts used in this Law

This Law uses the following basic concepts:

additional contribution - part of the insurance premium additionally paid by a member of the mutual insurance company in the manner and in cases provided for by the rules of mutual insurance of the mutual insurance company;

2) mutual insurance - one of the forms of insurance in which each policyholder is a member of a mutual insurance company;

3) mutual insurance company (hereinafter referred to as the company) - a legal entity created in the organizational and legal form of a consumer cooperative for the purpose of providing mutual insurance of the property interests of its members;

4) authorized body - a state body that carries out state regulation, control and supervision of the financial market and financial organizations.

Article 2. Legislation of the Republic of Kazakhstan on mutual insurance

The legislation of the Republic of Kazakhstan on mutual insurance is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those provided for by this Law, then the rules of the international treaty apply.

3. The Law of the Republic of Kazakhstan “On Consumer Cooperatives” applies to the activities of societies to the extent not regulated by this Law.

Article 2-1. The main goal, task and principles of state regulation in the sphere of the company’s activities

The main goal of state regulation in the sphere of the company’s activities is to establish the legal basis for the company’s activities in the implementation of mutual insurance.

2. The main task of state regulation in the sphere of the company’s activities is to protect the rights and legitimate interests of policyholders, insured persons and beneficiaries.

3. The basic principles of state regulation in the sphere of the company’s activities are:

ensuring equality of rights and obligations of members of the company;

2) protection of the rights and legitimate interests of policyholders, insured persons and beneficiaries.

Article 3. Principles of mutual insurance

The principles of mutual insurance are:

equality of rights and obligations of members of society;
mutual protection and mutual responsibility of members of society.

Article 4. Mutual insurance objects

The object of mutual insurance may be the legal property interests of members of the company, united by the same risks associated with their activities.

2. Mutual insurance is carried out in the “life insurance” industry and the “general insurance” industry in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities.

3. The combination of industries and classes of insurance in mutual insurance is carried out in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities.

4. The company has the right to develop a type of insurance that combines the features and content of two or more classes of insurance provided for by the charter of the company, taking into account the restrictions on combining insurance classes established by the legislation of the Republic of Kazakhstan on insurance and insurance activities.

Article 5. Competence of the authorized body in relation to the company

Authorized body:

2) establishes the list, forms, deadlines and procedure for submitting reports by companies, with the exception of financial statements;

3) considers cases of administrative offenses and imposes administrative penalties in accordance with the legislation of the Republic of Kazakhstan on administrative offenses;

4) establishes the procedure and amount of investment of the company’s assets;

5) establishes the list, forms and deadlines for the submission of financial statements by companies;

6) determines the list, forms and deadlines for the submission of primary statistical data by societies;

6-1) adopts regulatory legal acts in the field of regulating the activities of companies in accordance with the purpose and objective provided for in paragraphs 1 and 2 of Article 2-1 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is determined in the regulations on the authorized body;

7) performs other functions provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Chapter 2. CREATION AND TERMINATION OF THE COMPANY’S ACTIVITIES, RIGHTS AND OBLIGATIONS OF ITS MEMBERS

Article 6. Name of the company

The name of the company must contain the words “mutual insurance company.”

2. If the company provides a single type of mutual insurance, then its name must contain an indication of this type of insurance.

3. The name of the company should not contain the words “national”, “state”, “central”, “budgetary”, “republican” in full or abbreviated form in any language.

4. If the location of its permanent body or separate division changes, the company is obliged to notify the authorized body about this no later than fifteen working days.

Article 7. State registration of the company

The company is obliged, within thirty working days from the date of state registration, to notify the authorized body in writing about the completion of state registration with the attachment:

certificate of state registration of a legal entity and a notarized copy of the charter;

2) documents confirming the decision to create the company.

Article 8. Constituent documents of the company

The constituent documents of the company are the constituent agreement and the charter.

2. The foundation agreement of the company must contain:

the obligation of the founders to sign the insurance contract and pay insurance premiums;
the amount of cash contributions made by the founders for administrative expenses associated with the creation and organization of the company’s activities.

3. The charter of the company, in addition to the information provided for by the legislative acts of the Republic of Kazakhstan, must contain:

the grounds for the association of members of the company, including an indication of the community of property interests subject to mutual insurance, the professional affiliation of the members of the company, the community of areas of activity and interests;
liability of members of the company, including subsidiary liability for insurance obligations, as well as for making additional contributions;
classes of insurance;
the procedure for paying insurance premiums and other contributions;
the procedure for the formation and use of insurance and other reserves created by the company;
excluded by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV;
the procedure for providing members of the company with information about the activities of the company;
the procedure for becoming a member of the society, as well as the grounds and procedure for terminating membership in the society.

The company's charter may contain other provisions that do not contradict the legislation of the Republic of Kazakhstan.

4. Attached to the charter of the company is a list of members of the company indicating the last name, first name and, if desired, patronymic, as well as place of residence and identification document details for individuals, as well as full name, location and information on state registration (re-registration) for legal entities.

The Society ensures the maintenance and storage of a list of its members.

5. The charter of the company must be made available for review to candidates for membership in the company.

6. The company is obliged, within ten calendar days after the state registration of changes or additions made to the constituent documents, including those requiring re-registration with the justice authorities, to submit to the authorized body a notarized copy of the changes or additions to the constituent documents with the mark and seal of the registered justice authority.

Article 9. Members of the society

Members of the society are individuals and (or) legal entities.

The number of members of the society must be at least two hundred and fifty.

2. Membership in the company arises after payment of the first insurance premium in accordance with the concluded insurance contract.

Article 10. Rights and obligations of members of the society

Members of the society have the right:

use all types of insurance services provided by the company;
participate in the management of the company and be elected to its bodies;
insure their property interests on the terms specified in the rules of mutual insurance and other documents regulating the activities of the company;
receive from the company’s bodies any information about their activities, the activities of the company, including getting acquainted with accounting data, reporting and other documentation in the manner determined by the company’s charter;
terminate membership in the company in the manner and under the conditions provided for by the charter of the company;
receive loans from the company within the limits of the redemption amount provided for in the relevant accumulative insurance agreement;
receive loans to pay insurance premiums;
submit a petition to the executive body of the company for the provision of money to prevent the risk of an insured event;
make other contributions for the purposes of the company in the manner prescribed by the charter of the company;
address the general meeting of members of the company with complaints about the actions (inaction) of the executive, control and other bodies of the company;
appeal in court decisions of the company’s bodies that affect the interests of the company’s members.

2. Members of the society are obliged:

comply with the company’s charter;
implement decisions of the company’s bodies adopted within their competence;
make timely payment of insurance premiums;
pay additional contributions in the amount determined by the general meeting of members of the company, in accordance with this Law and the charter of the company.

3. The charter of the company may establish other rights and obligations of members that do not contradict the legislation of the Republic of Kazakhstan.

4. It is not permitted to relieve a member of the company from the obligation to pay insurance premiums and additional contributions, including by offsetting claims against the company, except for the cases provided for in paragraph 3 of Article 22 of this Law.

Article 11. Termination of membership in the society

Membership in the society is terminated in the following cases:

voluntary withdrawal from the membership of participants;
exceptions on the basis and in the manner prescribed by the charter of the company, including failure to fulfill obligations to pay the insurance premium;
liquidation of a legal entity - a member of the company;
death of a member of the company, declaring him dead, declaring him missing in the manner established by the legislation of the Republic of Kazakhstan;
liquidation of the company.

2. If a member of the company has previously made other contributions for the purposes of the company, he has the right, upon termination of membership in the company, to receive them back minus the debt to the company within the time limits provided for by the charter of the company.

Insurance premiums and additional contributions paid by a member of the company are not refundable, except in cases provided for by the legislative acts of the Republic of Kazakhstan.

3. Consideration of the application for voluntary withdrawal from the membership of the company and the return to the applicant of the contributions specified in paragraph 2 of this article are carried out by the company within a period of no more than a month from the date of filing the application.

4. In the event of the death of a member of the company, his heir has the right to join the company in the manner prescribed by the charter of the company.

If the heir refuses to join the company, it shall pay the heir other contributions previously made by the testator, provided for in paragraph 2 of this article.

5. A founder who has not paid the insurance premium and has not signed an insurance contract within the time limits established by the constituent agreement is excluded from the founders.

Article 12. Reorganization or liquidation of the company

Reorganization or liquidation of the company is carried out in the manner established by the civil legislation of the Republic of Kazakhstan.

Chapter 3. ACTIVITIES OF THE COMPANY

Article 13. Conditions for carrying out mutual insurance activities

Mutual insurance activities are not subject to licensing.

2. The company has no right to carry out activities:

for civil liability insurance;

2) by type of compulsory insurance.

Article 14. Procedure for implementing mutual insurance by the company

Footnote: Footnote. Title as amended by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV.

The activities of a mutual insurance company are carried out in accordance with this Law.

2. The Company carries out mutual insurance of the property interests of its members by concluding an insurance agreement.

3. The general conditions under which mutual insurance is carried out are determined in the rules of mutual insurance that meet the requirements of Article 825-1 of the Civil Code of the Republic of Kazakhstan.

4. The rules of mutual insurance must be presented for review to persons wishing to become members of the society.

Article 15. Activities of the company

Mutual insurance is the main activity carried out by the company.

2. The company, in addition to mutual insurance activities, has the right to carry out the following types of activities:

investment activity in the manner prescribed by the regulatory legal act of the authorized body;
issuing loans to its members within the limits of the redemption amount provided for in the relevant accumulative insurance agreement;
issuing loans to its members to pay insurance premiums;
sale of specialized software used to automate the activities of companies;
sale of special literature on insurance and insurance activities on any type of storage media;
sale or lease of property previously acquired for the needs of the company;
provision of consulting services on issues related to insurance activities;
organizing and conducting training in order to improve the skills of specialists in the field of mutual insurance.

3. The Company is prohibited from carrying out transactions and operations not provided for in paragraphs 1 and 2 of this article.

3-1. The company is obliged to report information and information to the authorized body for financial monitoring in accordance with the Law of the Republic of Kazakhstan “On combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.”

4. Participation of the company in other legal entities is not allowed, with the exception of cases of merger of mutual insurance companies into associations (unions), as well as the creation of a consortium by them on the basis of an agreement on joint economic activity.

5. The Company has the right to create branches and representative offices in accordance with the legislation of the Republic of Kazakhstan.

6. The society is obliged to provide equal rights provided for by this Law to all members of the society.

Article 16. Prohibition on carrying out reinsurance activities

The company is prohibited from transferring all or part of the insurance risks accepted by the company to reinsurance of an insurance (reinsurance) organization that has the appropriate license from the authorized body, or a reinsurance organization - a non-resident of the Republic of Kazakhstan, as well as carrying out intermediary activities or activities for accepting risks for reinsurance.

Chapter 4. BODIES OF THE SOCIETY

Article 17. Bodies of society

The bodies of the company are:

the highest body - the general meeting of members of the company;
executive body - a collegial body (board) or a person solely performing the functions of the executive body (chairman);
control body - internal audit service.

2. The charter of the company may provide for the creation of other bodies of the company.

Article 18. General meeting of society members

The exclusive competence of the general meeting of members of the company includes:

determination of the terms of insurance contracts concluded by the company with its members;
approval of the company’s budget;
making a decision to conduct an audit of the company and choosing an audit organization;
determining the procedure for resolving disputes between the company and its members;
approval of the rules of mutual insurance;
determination of the procedure for calculating insurance rates;
determination of the procedure for the formation and replenishment of insurance and other reserves of the company necessary to ensure the activities of the company, their use;
approval of the company’s investment policy;
approval of the policy of transfer of insurance risks for their reinsurance and establishment of limits of own retention for each type of insurance;
making a decision on issuing loans to members of the company within the limits of the redemption amount provided for in the relevant accumulative insurance agreement;
making a decision on issuing loans to members of the company to pay insurance premiums;
making a decision on the allocation of money for carrying out activities to prevent the risks of an insured event on the basis of a conclusion presented by the executive body of the company;
determination of the work procedure of the internal audit service, the amount and conditions of remuneration for employees of the internal audit service;
making a decision on the entry of new members into the society;
other issues provided for by other legislative acts of the Republic of Kazakhstan, as well as the charter of the company.

2. The general meeting of members of the company has the right to consider any issue related to the activities of the company.

3. The procedure for convening, holding, and making decisions at a general meeting of members of the company (including an extraordinary meeting) is determined by the legislation of the Republic of Kazakhstan on consumer cooperatives.

4. When making a decision at the general meeting, each member of the company has one vote, regardless of the size of his share in the property of the company.

Article 19. Executive body

The competence of the executive body of the company includes:

formation of proposals on priority areas of the company’s activities;
development of the company’s investment policy;
development of a policy for the transfer of insurance risks for their reinsurance and limits of own retention for each type of insurance;
preparation of the annual financial report and the company’s draft budget for the next year;
approval of the company’s reports, with the exception of reports, the approval of which falls within the exclusive competence of the general meeting of the company’s members;
other issues determined by other legislative acts of the Republic of Kazakhstan, as well as by the charter of the company.

2. The chairman of the company is elected and dismissed by the general meeting of members of the company.

The chairman of the company may not be a member of the company.

3. The executive body of the company (board), including its director, is elected by the general meeting of members of the company in the number and for the period provided for by its charter.

By decision of the general meeting of members of the company, the powers of any member of the board of directors of the company may be terminated early.

4. The head of the executive body of the company ensures the functioning of this body and presides over its meetings.

5. The board of the company has the right to make decisions if more than half of its members are present at its meeting. Decisions are made by a simple majority of votes. In case of equality of votes, the vote of the chairman of the board is decisive.

6. The procedure for the activities of the executive body of the company and its decision-making is determined by the charter of the company and other documents adopted by the general meeting of members of the company.

Article 20. Internal audit service of the company

To exercise control over the financial and economic activities of the company, an internal audit service is formed, which consists of a number of members of the company, unless otherwise provided by the charter of the company.

2. The operating procedure of the internal audit service of the company is determined by the charter and internal documents of the company.

3. A member of the executive body of the company cannot be a member of the internal audit service.

4. The Internal Audit Service carries out inspections of the financial and economic activities of the company, gives the general meeting of members of the company an opinion on the annual financial report and balance sheet of the company. The general meeting of members of the company does not have the right to approve the annual financial reports and balance sheets of the company in the absence of a conclusion from the internal audit service of the company.

5. Members of the internal audit service, including its chairman, are elected by the general meeting of members of the company for a period determined by the charter of the company. Members of the internal audit service do not have the right to delegate their powers to other persons.

By decision of the general meeting of members of the company, the powers of any member of the internal audit service may be terminated early.

6. Members of the internal audit service have the right to receive any information about the activities of the company.

Members of the internal audit service are present at meetings of the company's board of directors.

7. The Internal Audit Service independently convenes a general meeting of members of the company:

in the event that the activities of the executive body do not ensure the achievement of the goals and tasks of the company;
if the executive body of the company has not fulfilled the demand of one tenth of the total number of members of the company to convene a general meeting within fourteen days from the date of such request.

Chapter 5. PROPERTY OF THE COMPANY

Article 21. Sources of formation of the company’s property

The sources of formation of the company’s property are:

contributions of founders;
excluded by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV;
excluded by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV;
voluntary monetary and other contributions;
income received from the placement of insurance reserves and other funds;
income from other activities provided for by this Law.

2. The procedure for disposing of property owned by the company is established by the general meeting of members of the company.

Article 22. Insurance premiums and insurance payments

Insurance premiums paid by members of the company are paid to the beneficiary by the company in the form of insurance payments in the amount determined by the insurance contract.

2. The amount and procedure for calculating insurance premiums are established by the rules of mutual insurance of the company, approved by the general meeting of members of the company, unless otherwise provided by the legislative acts of the Republic of Kazakhstan.

3. If at the end of the reporting period the company had no debt on insurance payments, as well as debt on taxes and other obligatory payments to the budget, the general meeting of members of the company may decide to reduce regular insurance premiums or to suspend their payment.

4. The procedure and conditions for making insurance payments are established by the rules of mutual insurance of the company, approved by the general meeting of members of the company.

Article 23. Additional contributions

The procedure for calculating and making additional contributions must be established by the rules of mutual insurance of the company, approved by the general meeting of members of the company.

2. Additional contributions from members of the company are used only for insurance payments.

3. Excluded by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV.

Article 24. Insurance and other reserves of the company

Footnote: Footnote. Title as amended by the Law of the Republic of Kazakhstan dated December 30, 2009 No. 234-IV.

To ensure the fulfillment of its obligations, the company forms insurance reserves from received insurance premiums. The received amount of insurance premiums must be used in full to form insurance reserves.

Requirements for the formation, methodology for calculating insurance reserves and their structure are established by regulatory legal acts of the authorized body.

If the company's charter does not provide for the creation of other reserves, then investment income and the company's own funds are also directed to the formation of insurance reserves.

2. If at the end of the financial year the company had no debt on insurance payments, as well as debt on taxes and other obligatory payments to the budget, the general meeting of members of the company may decide to transfer part or all of the amount of insurance reserves to other reserves of the company, provided for by the charter of the company, to ensure the financial stability and solvency of the company. The required amount of insurance reserves for the coming financial year must be formed at the expense of regular insurance premiums.

3. Funds from insurance reserves are used for investing and (or) making insurance payments.

4. The company is required to have an actuarial assessment of the company’s obligations to members, calculations of insurance premiums and insurance reserves of the company, carried out by an actuary in accordance with the rules of mutual insurance of the company.

Chapter 6. FINAL PROVISIONS

Article 25. Liability for violation of the legislation of the Republic of Kazakhstan on mutual insurance

Violation of the legislation of the Republic of Kazakhstan on mutual insurance entails liability in accordance with the laws of the Republic of Kazakhstan.

Article 26. Procedure for the entry into force of this Law

This Law comes into force from the date of its official publication.

President of the Republic of Kazakhstan