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No insurance payment shall be made in cases where loss of working capacity has not occurred
No insurance payment shall be made in cases where loss of working capacity has not occurred
Starting from 2026, compulsory insurance against loss of professional working capacity as a result of industrial accidents and occupational diseases for persons employed in the public sector and municipalities will be implemented through the State Social Protection Fund (SSPF). In this regard, amendments have been made to the laws “On Insurance” and “On Insurance Activity”.
Responding to questions on this matter, the Chairman of the State Social Protection Fund (SSPF), Zeka Mirzayev, stated that the activity related to compulsory insurance of public sector employees against loss of professional working capacity due to industrial accidents and occupational diseases is no longer a commercial activity but is being transformed into a socially oriented one:
“It should be noted that the amendments provide for insurance of employees specifically against loss of professional working capacity resulting from industrial accidents and occupational diseases. In other words, in cases where no loss of working capacity has occurred, there can be no talk of any insurance payment. This is regulated by the relevant law.”
Z. Mirzayev added that no changes are envisaged in the implementation of insurance payments stipulated by legislation, and there are no changes in insurance premiums or insurance amounts: “The changes will mainly concern administrative practice. First of all, the insurance of employees of organizations financed from the state budget, municipalities, and public legal entities established on behalf of the state will be carried out not by contract year, but by budget year. Previously, these enterprises and organizations concluded relevant contracts with private insurance companies, on the basis of which the terms were determined. However, the conclusion of such contracts between the SSPF and state and municipal bodies is not envisaged. The central electronic information system of the Ministry of Labour and Social Protection of the Population has a labour contracts subsystem. Information through this system will be accepted by the Fund in a proactive manner. Insured persons, that is, employers, by accessing the relevant portal through this system, will be able to see for which employees and in what amount they must pay insurance premiums. From the date these payments are received by the Fund, insurance coverage will enter into force in respect of the relevant employees.”
Noting that the process regarding occurred insurance events will continue in accordance with the procedure stipulated by legislation, Z. Mirzayev emphasized that an investigation report must be prepared by the State Labour Inspectorate Service. This report must confirm the fact of the employee’s loss of professional working capacity. After that, insurance payments will be made by the Fund on the basis of information submitted by the employer through the system.
We recall that the amounts of compulsory insurance against loss of professional working capacity as a result of industrial accidents and occupational diseases are determined by the Resolution of the Cabinet of Ministers dated 5 November 2010 “On the determination of compulsory insurance tariffs against loss of professional working capacity as a result of industrial accidents and occupational diseases”. The document provides for 14 risk categories and corresponding coefficients.
The insurance amounts paid for loss of professional working capacity are regulated by Resolution No. 3 of the Cabinet of Ministers dated 9 January 2003 entitled “Rules, conditions and amounts of payments to an employee whose health has been damaged as a result of an industrial accident or occupational disease, or to the family members and other dependents of an employee who has died as a result thereof”.
Starting from 2026, compulsory insurance against loss of professional working capacity as a result of industrial accidents and occupational diseases for persons employed in the public sector and municipalities will be implemented through the State Social Protection Fund (SSPF). In this regard, amendments have been made to the laws “On Insurance” and “On Insurance Activity”.
Responding to questions on this matter, the Chairman of the State Social Protection Fund (SSPF), Zeka Mirzayev, stated that the activity related to compulsory insurance of public sector employees against loss of professional working capacity due to industrial accidents and occupational diseases is no longer a commercial activity but is being transformed into a socially oriented one:
“It should be noted that the amendments provide for insurance of employees specifically against loss of professional working capacity resulting from industrial accidents and occupational diseases. In other words, in cases where no loss of working capacity has occurred, there can be no talk of any insurance payment. This is regulated by the relevant law.”
Z. Mirzayev added that no changes are envisaged in the implementation of insurance payments stipulated by legislation, and there are no changes in insurance premiums or insurance amounts: “The changes will mainly concern administrative practice. First of all, the insurance of employees of organizations financed from the state budget, municipalities, and public legal entities established on behalf of the state will be carried out not by contract year, but by budget year. Previously, these enterprises and organizations concluded relevant contracts with private insurance companies, on the basis of which the terms were determined. However, the conclusion of such contracts between the SSPF and state and municipal bodies is not envisaged. The central electronic information system of the Ministry of Labour and Social Protection of the Population has a labour contracts subsystem. Information through this system will be accepted by the Fund in a proactive manner. Insured persons, that is, employers, by accessing the relevant portal through this system, will be able to see for which employees and in what amount they must pay insurance premiums. From the date these payments are received by the Fund, insurance coverage will enter into force in respect of the relevant employees.”
Noting that the process regarding occurred insurance events will continue in accordance with the procedure stipulated by legislation, Z. Mirzayev emphasized that an investigation report must be prepared by the State Labour Inspectorate Service. This report must confirm the fact of the employee’s loss of professional working capacity. After that, insurance payments will be made by the Fund on the basis of information submitted by the employer through the system.
We recall that the amounts of compulsory insurance against loss of professional working capacity as a result of industrial accidents and occupational diseases are determined by the Resolution of the Cabinet of Ministers dated 5 November 2010 “On the determination of compulsory insurance tariffs against loss of professional working capacity as a result of industrial accidents and occupational diseases”. The document provides for 14 risk categories and corresponding coefficients.
The insurance amounts paid for loss of professional working capacity are regulated by Resolution No. 3 of the Cabinet of Ministers dated 9 January 2003 entitled “Rules, conditions and amounts of payments to an employee whose health has been damaged as a result of an industrial accident or occupational disease, or to the family members and other dependents of an employee who has died as a result thereof”.