Basel Protocol Financial limits and insurance Katarína Lenková SEA CWEM Bratislava, Slovak Republic Warsaw, 18 – 20 January 2006
Insurance and regulations • Environment • Transportation • Banking and insurance
Environmental legislation (1) • Law No 443/2004 Coll. whereby the Law No 223/2001 Coll. on wastes is amended and supplemented (effective as from 1 August 2004) Financial security: • Guarantee • Equivalent insurance
Environmental legislation (2)Guarantee • Notifier • Ministry of Environment Amount of guarantee depends on: • Provable costs on waste transport • Costs on waste disposal/recovery in the amount of one and a half multiple of these costs
Environmental legislation (3)Guarantee Calculation formula: (Length of route*30 + costs of disposal*waste amount for one transport) *1.5 Rate per ton of waste: Landfilling HW $ 100 Non-HW $ 50 Incineration HW $ 500 Non-HW $ 83
Environmental legislation (4)Guarantee • Guarantee is furnished in the bank or foreign bank branch by earmarking funds on unlimited time period in favour of the Ministry of Environment • Guarantee will be returned to notifier: • after submission of confirmation on waste disposal in environmentally sound manner • if the notifier proves that transboundary movements were cancelled or will not be effected
Environmental legislation (5)Guarantee • Guarantee does not cover liability for damage under the Basel Protocol and therefore it is an insufficient measure. Slovakia applies guarantee in transboundary movements of wastes
Environmental legislation (6)Equivalent insurance • Is practically an insurance that covers provable costs on transboundary movements and costs on waste disposal/recovery in the amount of one and a half multiple of these costs. Financial security of this kind is not used in Slovakia
Environmental legislation (7) • Law No 261/2002 Coll. on prevention of major industrial accidentsand on amending and supplementing certain laws The operator is obliged to: - make a contract on liability insurance for the damage, or - ensure financial coverage of reliability for damageincurred as a result of industrial hazard The Law is not applied to the transport of HW or landfills
Legislation of transportation • Road transportation – Law No 168/1996 Coll. on road transportation • Railway transportation – Law No 164/1996 Coll. on railroads and on the change of the Law No 455/1991 Coll. on enterpreneurship, as amended Both laws set inter alia a duty of liability insurance of carrier; the insurance covers a material damage and also a loss of life or bodily injury.
Regulations concerning banking and insurance (1) • Law No 483/2001 Coll.on banks – describes bank duties and their activities • Law No 95/2002 Coll. on insurance policy – sets up the insurance operations, i.e., making insurance contracts and defining insurance types and individual insurance groups
Regulations concerning banking and insurance (2) Individual insurance groups: • insurance of damages on road transportation vehicles other than tracked transportation vehicles tracked inland navigation vessels • insurance of damage during carriage of goods including baggage, and other property regardless of transportation vehicles used
Regulations concerning banking and insurance (3) • insurance of damages on other property caused by fire, explosion, etc. • liability insurance (damages done by use of motor vehicles; or carrier‘s damage) • general liability insurance for damage – based on the generally binding regulation concluded e.g. by driver, etc. • insurance of guarantee • insurance of different financial losses
Regulations concerning banking and insurance (4) Liability insurance of damage to environment is not a common product on insurance market in Slovakia. Reasons: • Damage to environment will appear after several years from the proper pollution • Risks of human activity cannot be assessed in advance • Negative impacts on environment and their extent cannot be assessed in advance For these reasons, the liability for damage of environment is not a subject of insurance.
Financial limits • In the SR no financial limits of liability are set in the light of the Protocol • Insurance companies do not offer specific products concerning transboundary movements of wastes or environmental damage • Even the minimum financial limits of liability in the light of the Basel Protocol are relatively high
Basel Protocol Thank you for your attention E-mail: email@example.com