Kazakhstan Proposes Doubling Insurance Payments for Traffic Accident Victims
Kazakhstan is considering major changes to its compulsory motor insurance legislation, with members of parliament proposing to double compensation payments for victims of traffic accidents. Presenting the bill in the Mazhilis, MP Nartay Sarsengaliyev said the initiative aims to restore social justice and strengthen financial protection for citizens. He said current compensation levels no longer reflect the country’s actual economic conditions. At present, in the event of a fatal traffic accident, the dependents of an adult victim receive approximately $13,600. Under the proposed amendments, this amount would rise to around $29,100. The bill also outlines a similar twofold increase in compensation for children and individuals who become disabled as a result of accidents. A key provision of the legislation addresses how compensation is distributed in the event of a fatality. Currently, payouts are made only to dependents or those under the care of the deceased. If no such individuals exist, no compensation is paid. Lawmakers propose amending this policy to allow funds to be transferred to the spouse or parents of the deceased in such cases. According to Sarsengaliyev, denying compensation despite regular insurance premium payments during a person’s lifetime is unjust. The proposed legislation would also require insurance companies to proactively contact the families of deceased victims and hire independent experts to assess damages. While the initiative has broad parliamentary support, lawmakers acknowledged the financial risks involved. Deputy Tatyana Savelyeva noted that while the government supports the proposal in principle, the Cabinet has warned that doubling insurance payouts could result in a more than threefold increase in the cost of insurance policies. Maria Khadzhieva, Deputy Chair of the Agency for Regulation and Development of the Financial Market, highlighted the financial pressure already facing insurers. Over the past five years, auto insurance payouts have increased 3.7 times to reach $135.1 million, while premiums collected have grown by just 47% to $67 million. She argued that further increases in payouts would be unsustainable without a corresponding rise in insurance premiums. As previously reported by the Times of Central Asia, Kazakhstan set a national record for new car sales this year, further straining the country’s auto insurance system.
