Glossary

Policyholder – a person who has entered into an insurance contract with an insurer. Insurers can be legal entities and citizens.

Victim - a person whose life has been harmed as a result of the operation of the vehicle by another person;

Beneficiary - a person who, in accordance with the insurance contract or legislative acts on compulsory insurance, is the recipient of the insurance payment. The beneficiary can be both a legal entity and a citizen. The beneficiary may be appointed for both personal and property insurance. For mandatory types, the Beneficiary is determined by the legislative acts regulating this type of insurance, for voluntary types - is appointed by the insured.

Creditor - an insurant (insured person, beneficiary) who has the right to receive a guarantee payment upon the occurrence of an insured event under an insurance contract of a forcibly liquidated insurance company, as well as another person who has compensated the victim (the person entitled to compensation for damage) for the damage caused within the scope of the insurer's liability established by the insurance contract and the legislative acts of the Republic of Kazakhstan on compulsory insurance, and received the right to insurance payment;

Guaranteed types of insurance - types of compulsory insurance, for which the legislative act of the Republic of Kazakhstan on compulsory insurance provides for mandatory participation in the Fund for Guaranteeing Insurance Payments;

The system of guaranteeing insurance payments - a set of organizational and legal measures provided for by this Law, aimed at protecting the rights and legitimate interests of policyholders (insured persons, beneficiaries) in the event of an insured event under an insurance contract in the event of compulsory liquidation of a participating insurance company;

Guarantee payment - the amount of money paid by the Insurance Payments Guarantee Fund in the manner and on the terms provided for by the Law of the Republic of Kazakhstan "On the Insurance Payments Guarantee Fund" and the regulatory and legal acts of the authorized body to the insured (insured, beneficiary) for insured events that have occurred under an insurance contract forcibly liquidated insurance organization in cases provided for by the Law of the Republic of Kazakhstan "On Insurance Activities";

Agent bank - a bank or an organization that carries out certain types of banking operations, provides services for making guarantee payments to creditors on the basis of an agency agreement with the Insurance Payments Guarantee Fund;

Insurance organization that is a participant in the system of guaranteeing insurance payments (insurance organization-participant) - an insurance company that has concluded a participation agreement with the Insurance Payments Guarantee Fund;

Forcibly liquidated insurance company - an insurance company-participant, in respect of which a court decision on forced liquidation has entered into force;

Participation Agreement - an agreement on participation in the system of guaranteeing insurance payments, concluded between the Insurance Payments Guarantee Fund and the participating insurance company in the manner and on the terms determined by the Law of the Republic of Kazakhstan "On the Insurance Payments Guarantee Fund";

Compulsory contributions - the amount of money in the form of a part of accrued insurance premiums for guaranteed types of insurance, paid by the participating insurance organization to the Fund for Guaranteeing Insurance Payments in the manner prescribed by this Law and other regulatory legal acts of the Republic of Kazakhstan;

Additional contribution - the amount of money in the form of a part of accrued insurance premiums for compulsory insurance of civil liability of vehicle owners, paid by the insurance organization to the Fund for Guaranteeing Insurance Payments in the manner prescribed by the Law of the Republic of Kazakhstan "On the Fund for Guaranteeing Insurance Payments";

Extraordinary contributions - the amount of money additionally paid by the participating insurance company to the Insurance Payments Guarantee Fund in cases provided for by the Law of the Republic of Kazakhstan "On the Insurance Payments Guarantee Fund";

Contingent Liabilities – obligations of an insurance company-participant to the Insurance Benefits Guarantee Fund, formed by it for the payment of extraordinary premiums;

Insurance Claims Guarantee Reserve - the amount of money formed by the Insurance Claims Guarantee Fund at the expense of mandatory contributions, as well as money received by it from a forcibly liquidated insurance (reinsurance) company in order to satisfy the requirements of the Insurance Claims Guarantee Fund and used in the cases provided for in paragraph 2-2 Article 12 of the Law of the Republic of Kazakhstan "On the Fund for Guaranteeing Insurance Payments";

Harm compensation reserve - the amount of money formed by the Fund for Guaranteeing Insurance Payments at the expense of initial one-time contributions and additional contributions, used exclusively to compensate for harm to the life, health of the victim and (or) burial expenses in cases provided for by the Law of the Republic of Kazakhstan "On the Fund for Guaranteeing Insurance Payments" ;

Direct settlement - a mechanism for making an insurance payment, in which compensation for harm caused to the life, health and (or) property of the victim in a traffic accident is carried out by the insurer with which the victim has a contract of compulsory insurance of civil liability of vehicle owners.