The law, “On Compensation for Damage Caused by an Unlawful Decision, Action or Inaction of a State Authority or Its Official,” will enter into force on January 28, 2027, six months after its official publication.
Under the legislation, disputes over compensation will be considered by the courts. The amount of compensation for material and non-material damage will be determined on the basis of a final court ruling.
Compensation funds to be established
The law provides for the creation of regional targeted compensation funds under the Council of Ministers of the Republic of Karakalpakstan, regional administrations and the Tashkent city administration.
Once a court decision enters into legal force, compensation will be paid in monetary form from the relevant regional compensation fund.
If a specific individual has been found responsible for the damage by a final court ruling, that person will be required to compensate for the material and moral harm.
State to recover payments from those responsible
When compensation has been paid from a regional fund and the law allows the state to seek reimbursement from the person responsible, the Council of Ministers of Karakalpakstan or the relevant regional or Tashkent city administration will submit a claim to the state body where the individual is employed or was previously employed.
The state body must transfer the full amount to the compensation fund from its off-budget resources within three working days and take legal steps to recover the funds from the responsible individual under the right of recourse.
If the institution's off-budget resources are insufficient, it must amend its expenditure estimates and ensure the required funds are transferred within the prescribed timeframe.
Should the responsible individual fail to reimburse the amount voluntarily, the state body will recover the funds through the courts.
Law excludes several categories of claims
The legislation applies specifically to damage caused by unlawful decisions, actions or inaction of state authorities, their structural and territorial subdivisions, or their officials.
However, it does not cover several categories of cases, which remain subject to separate legislation. These include compensation for damage caused by unlawful actions of members of the National Guard, internal affairs bodies, customs authorities, military personnel and state notaries.
The law also does not apply to compensation related to counterterrorism operations, emergency response measures, states of emergency, or the compulsory acquisition of land plots for public needs, all of which are governed by separate legal acts.
