What is OSGOR and Why Does Your Business Need It?
Compulsory Employer’s Liability Insurance (OSGOR) is a mandatory type of insurance for all employers in Uzbekistan who have hired workers. This system has been in effect since 2009 and is governed by the Law of the Republic of Uzbekistan dated April 16, 2009.
Key Facts for Businesses:
Mandatory for all employers (legal entities and individual entrepreneurs with employees)
Covers harm to employees’ life and health in the course of employment
Insurance amount: 50 times the minimum wage per employee
Contract term: 1 year with mandatory renewal
Fines for non-compliance: from 5 to 50 times the minimum wage
How OSGOR Cost is Calculated
The insurance cost depends on three factors:
Formula:
Insurance Premium = Insurance Amount × 0.1% × Risk Class Coefficient × Number of Employees [2]
Base Rate
Risk Class Coefficients
All business activities are divided into 20 risk classes with different coefficients:
Class | Coefficient | Example Activities |
|---|
1 | 0.571 | Design firms, wholesale trade, brokerage services |
2 | 0.857 | Standardization centers, customs services |
3 | 0.857–1.143 | Equipment repair, beer production, retail trade |
4 | 1.429 | Elevator manufacturing |
5 | 1.429 | Data carriers manufacturing, vehicle repair |
6 | 1.714 | Hydroelectric power stations |
7 | 2.00–2.286 | Polymer production |
8 | 2.286–2.571 | Thermal power plants, heating systems |
9 | 2.857 | Plastic product manufacturing |
10 | 3.143 | Non-ferrous scrap processing |
11 | 3.143 | Hard alloy production |
12 | 3.429–3.714 | Scrap processing, electrical equipment manufacturing |
13–14 | 4.00 | Metallurgy (pipes, cast iron, steel, rolling) |
15 | 4.286 | Chemical industry (caustic soda) |
16 | 4.571 | High-risk production |
17 | 5.143 | Mining industry |
18 | 5.714 | Explosives production |
19 | 6.00 | Nuclear energy |
20 | 7.714 | Underground coal mining, tungsten-molybdenum mining |
Practical Calculation Examples
Example 1: IT Company (Class 1, Coefficient 0.571)
Example 2: Construction Company (Class 7, Coefficient 2.286)
Example 3: Metallurgical Plant (Class 14, Coefficient 4.00)
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What OSGOR Covers
Insurance Cases
Types of Compensation
Lost income compensation — up to 100% of average salary in case of total disability
Medical expenses — treatment, medications, rehabilitation, assistive devices
Lump-sum payments — for disability or death
Monthly family support — in case of employee death
Procedures for Employers
Signing a Contract
Deadline: within 30 days after company registration or hiring the first employee
Documents: activity details, employee count, safety measures
Payment: lump sum or in installments
In Case of an Insurance Event
Notify insurer: within 3 working days
Provide documents: reports, medical certificates, statements
Investigation: conducted by the insurer
Payment: within 30 days of receiving all documents
Control and Penalties
Regulatory Bodies:
Insurance Market Development Agency, Labor Inspectorate, Tax Authorities
Penalties for No OSGOR:
How to Choose an Insurer
Requirements for the Insurer
License for OSGOR from the Insurance Market Development Agency
Financial stability
Claims settlement experience
Quality of customer service
Selection Criteria
Rates — uniform for all insurers, set by the government
Discounts — possible for good claims history
Service — speed, convenience of document submission
Reputation — customer reviews on payments and claims handling
Practical Tips for Businesses
How to Reduce OSGOR Costs
Improve workplace safety — can lead to rate discounts
Correct risk classification — ensure the correct class is applied
Maintain incident statistics — low rates may offer benefits
Train staff — reduces accident risks
Common Mistakes
Late contract signing
Failing to report changes in staff numbers
Delays in notifying about insurance events
Incorrect documentation for insurance claims
OSGOR Digitalization
Electronic policies
Online document submission
Mobile apps for notifications
Automated premium calculation
Conclusion
OSGOR is not just a mandatory expense — it’s a key tool for protecting your business from financial risks related to employee injuries. A solid understanding of the risk classification system, timely insurance registration, and professional interaction with insurers will minimize your expenses and ensure strong protection for both staff and business.
Investing in workplace safety not only reduces risks but can also lower insurance contributions, making OSGOR an effective risk management tool.
Choosing a reliable insurer with modern digital solutions, such as EUROASIA Insurance, ensures not only compliance with legal requirements but also smooth cooperation throughout the entire insurance process.
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EUROASIA Insurance specialists can help you:
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List of Sources
[1] Law of the Republic of Uzbekistan “On Compulsory Employer’s Liability Insurance” dated April 16, 2009. URL: https://lex.uz/acts/1471201
[2] Rules for Compulsory Employer’s Liability Insurance, approved by Resolution No. 177 of the Cabinet of Ministers of the Republic of Uzbekistan dated June 24, 2009. URL: https://lex.uz/acts/1493387
[3] Insurance Market Development Agency under the Ministry of Finance of the Republic of Uzbekistan. URL: https://aic.uz/ru/smotret-strahovanie/41
[4] EUROASIA Insurance. Compulsory OSGOR Insurance. URL: https://eai.uz/ru/business/osgor
