In Uzbekistan, companies operating hazardous production facilities are required not only to comply with industrial safety requirements but also to obtain civil liability insurance. This protects the interests of the business, employees, and the public in the event of an accident. Consider how this mechanism works and why it is necessary.

 

What is a hazardous production facility

 

The concept of hazardous production facilities extends not only to large chemical plants or oil depots. This category includes any sites, workshops and areas where high-risk factors are present. Legislation outlines several clear criteria, under which a facility is classified as hazardous. They include:

 

• Use, processing, storage, or transportation of explosive, toxic or flammable substances;
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• Operation of equipment operating under pressure exceeding 0.05 MPa or at high temperatures;
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• Use of permanently installed lifting mechanisms, cable cars or escalators;
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• Conducting processes that produce molten ferrous and non-ferrous metals;
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• Mining, extraction and beneficiation of minerals, as well as any underground work.

 

Identification of such objects is carried out by the accredited expert organizations. Without this, it is impossible to include the object in the state register and conclude the insurance contract. Therefore, there is no possibility to operate it legally.

 

Legal foundations: why insurance is mandatory

 

Mandatory civil liability insurance of owners of hazardous production facilities was introduced by the Law of the Republic of Uzbekistan "On Industrial Safety of Hazardous Production Facilities" (No. ZRU-57 of September 28, 2006) and detailed by Cabinet of Ministers Resolution No. 271 of December 10, 2008. These documents establish a uniform procedure for all enterprises.

 

According to these normative acts, no organization operating a hazardous facility may operate without a valid insurance policy. The insurance becomes mandatory for businesses to work in hazardous and dangerous conditions, and its absence is a ground for sanctions by regulatory authorities.

 

Registration process

 

The process of obtaining insurance involves interaction with experts and an insurance company and takes time. The main task at this stage is to correctly determine the hazard level of the property and assemble a package of supporting documents. The entire process can be broken down into several key steps:

 

• Examination of industrial safety. The organization concludes a contract with an accredited expert organization, which identifies all hazard indicators and determines the type of hazardous production facility;
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• Obtaining an identification sheet. This document records the characteristics of the facility, its type and information about the operating organization;
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• Submitting an application to the insurer. The assessment report and identification sheet are attached to the application;
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• Contract conclusion. The insurer calculates the premium based on the type of facility and other risk factors, after which the parties sign the contract.

 

Upon completion of these stages, the enterprise receives a policy, which serves as proof of financial guarantees to third parties. The contract is generally valid for one year and may be extended.

 

Types of hazardous production facilities and insurance amounts

 

All hazardous industrial facilities depending on the degree of potential threat are divided into three types. This directly affects the minimum insurance coverage established by the state. The higher the risk of a major accident is, the greater the financial coverage should be.

 

Type of hazardous production facility	Feature	Minimum insurance amount (in Base Calculation Unit (BCU))*
1st type	High hazard: volumes of hazardous substances are equal or exceed the maximum limits	250 000
2nd type	Hazardous substances are in smaller quantities	50 000
3rd type	Other objects with signs of danger (pressure equipment, lifting mechanisms, etc.)	10 000

 

 

*BCA - base circulating amount in effect at the time of conclusion of the contract.

 

The annual premium rate ranges from 0.08% to 0.13% depending on the type of facility, but the specific rate can be adjusted based on the specifics of the manufacturing, its location and other factors affecting the degree of risk. If desired, an enterprise can choose an insured amount higher than the minimum, thereby expanding the level of protection.

 

Who qualifies for compensation

 

The insurance policy is aimed at protecting victims – individuals, companies and the environment – who may suffer as a result of an accident. Legislation clearly defines payout recipients to ensure that funds reach everyone who is entitled to compensation promptly.

 

Insurance compensation is paid directly to the injured party – the individual or legal entity. At the same time, the insurer may also compensate for expenses associated with damage in cases provided for by law.

 

Thanks to this approach the insurance simultaneously protects employees, third parties and property interests unrelated to the enterprise itself. Meanwhile payments to employees are made regardless of whether the policyholder receives compensation.

 

Not compensated cases

 

In some cases, the insurer has the right to refuse payment. This is done to prevent abuse and to encourage a high level of safety in the workplace. The law establishes specific circumstances under which insurance coverage is not applicable:

 

• The accident occurred as a result of a nuclear explosion, radioactive contamination (if not related to the operation of the facility), military action, terrorist attacks or natural disasters;
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• The equipment was operated with gross violations of safety regulations;
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• The harm to health was the result of the intentional actions of the injured party;
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• The injury was caused to the employee within the framework of the employment relationship (such cases are covered by the social security system);
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• Claims for compensation for moral damages or lost profits were stated.

 

It's important to note that this list is exhaustive and cannot be arbitrarily expanded by the insurer. However, this is why timely expertise and strict adherence to the requirements of supervisory authorities remain critical for an enterprise.

 

Payment procedures

 

If an accident does occur, a technical investigation of its causes is immediately initiated. A commission determines the circumstances, defines the responsible parties and assesses the extent of the damage. Based on these findings, a technical investigation report is prepared, which is then submitted to the insurer.

 

Based on the received materials, the insurer prepares a report on the insured event. Compensation is paid within 10 business days of signing this report. If the contract covers multiple objects, the liability limit applies separately to the object where the accident occurred. All stages are strictly regulated, preventing delays and ensuring transparency in settlements.