The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an explainer on KASKO, describing it as voluntary motor insurance that covers damage to or loss of the insured vehicle, unlike mandatory motor third-party liability insurance which covers harm caused to other road users. The guidance addresses common questions linked to auto loans and customer rights. In auto lending, a bank may include a requirement in the credit agreement for the vehicle to be covered by KASKO for as long as the car remains pledged as collateral, but the bank cannot restrict the customer’s choice of insurer. On early loan repayment, the guidance notes that the KASKO contract can be terminated early if the insured object ceases to exist or the insured risk disappears, including where the loan is fully repaid and the pledge is removed. When terminating early, the insurer may retain a portion of the premium proportionate to the period of coverage, and premiums are typically non-refundable if the policyholder withdraws unless the contract provides otherwise. If the contract is terminated within 14 calendar days of signing, the insurer must refund part of the premium after deducting the cost of the period in force, with the deduction capped at 10% of the total premium.

Original source View in tracker