Change of tariffs for Compulsory TPL
The current insurance tariffs in Kazakhstan were established in 2007 and calculated based on insurance statistics and conditions under the Compulsory TPL, and a significant variability in the actual regional accident rate was applied. In other words, the cost of the policy is affected by: the region in which the car is registered, the service life of the vehicle, the length of service, the age of the driver and the accident history.
And what will change from January 01, 2024? In fact, the changes imply the introduction of a loss ratio as the main point for determining tariffs. This means that the cost of insurance will be affected by the accident rate of the vehicle registration region and correction factors will be applied to the parameter. The lower the accident rate in the region, the less the insurance company pays and, accordingly, the lower the insurance rate should be. Correction factors will be determined automatically every year. At the same time, all existing other criteria, including driving history, are preserved.
According to the new changes, the cost of car insurance is expected to decrease in 11 regions of the country, increase in seven regions, but in Karaganda and Ulytau regions it will remain unchanged. At the same time, insurers have the right to increase or decrease the correction coefficients by +/-10% once a year.
Summing up, this type of compulsory insurance is important to ensure the financial security of vehicle owners. By contacting Kazakhmys IC, you will be able to get more detailed information about the rules and tariffs of the Compulsory TPL.
In addition, from January 1st, 2024, innovations in the Euro Protocol and online regulation are expected. We will talk about them in the following publications, so stay tuned for our updates.
