Mandatory Enviromental Insurance

¿Wgat is the Mandatory Enviromental Insurance?

Mandatory environmental insurance is the financial guarantee required of any natural or legal person, public or private, who carries out activities that are risky for the environment, ecosystems and their constituent elements, in accordance with article N ° 22 of the General Environmental Law . The purpose of coverage is to guarantee the availability of funds necessary to repair collective environmental damage caused accidentally, regardless of whether it manifests itself suddenly or gradually. It is an environmental management tool that enables the State to fulfill its role of guaranteeing society the right to a healthy, balanced environment, suitable for human development as established in Article 41 of the National Constitution, being useful to restore environmental damage generated by industrial activity and ensure the interests of the inhabitants.

Who demands it?

Yes, it is mandatory for those individuals or legal entities, public or private, who carry out activities that are risky for the environment, ecosystems and their constituent elements. The contracting of insurance and its implementation seeks to prevent damages that may affect the general population. It is required by the competent environmental authority.