Basel Protocol Financial limits and insurance

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Basel Protocol Financial limits and insurance

• Katarína Lenková
• SEA CWEM Bratislava, Slovak Republic
• Warsaw, 18 20 January 2006

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Insurance and regulations

• Environment
• Transportation
• Banking and insurance

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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

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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

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Environmental legislation (3)Guarantee

• Calculation formula
• (Length of route30 costs of disposalwaste
  amount for one transport) 1.5
• Rate per ton of waste
• Landfilling HW 100 Non-HW 50
• Incineration HW 500 Non-HW 83

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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

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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

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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

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Environmental legislation (7)

• Law No 261/2002 Coll. on prevention of major
  industrial accidents and 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
  damage incurred as a result of industrial hazard
  
• The Law is not applied to the transport of HW or
  landfills

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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.

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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

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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

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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 carriers 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

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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.

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Regulations concerning banking and insurance (5)
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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

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Basel Protocol

• Thank you for your attention
• E-mail lenkova_at_sazp.sk