OSGOR in Uzbekistan: Industry Features & Cost Savings

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

• 0.1% annually of the insurance amount for all employers

Risk Class Coefficients

All business activities are divided into 20 risk classes with different coefficients:

Practical Calculation Examples

Example 1: IT Company (Class 1, Coefficient 0.571)

• 50 employees

• Annual premium: minimal due to low risk coefficient

Example 2: Construction Company (Class 7, Coefficient 2.286)

• 100 employees

• Annual premium: 4 times higher than IT company

Example 3: Metallurgical Plant (Class 14, Coefficient 4.00)

• 500 employees

• Annual premium: 7 times higher than IT company

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What OSGOR Covers

Insurance Cases

• Workplace injuries

• Occupational diseases

• Employee death during duty

• Health impairments related to work activity

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:

• Legal entities: 5–50 times the minimum wage

• Officials: 3–10 times the minimum wage

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:

• Calculate the exact cost for your business

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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

[4] EUROASIA Insurance. Compulsory OSGOR Insurance. URL: https://eai.uz/ru/business/osgor