UKRAINE: the draft law provides for creation of the Bureau of Environmental Insurance

15 September 2021 — Marina MAGNAVAL
The Cabinet of Ministers supported submission to the Verkhovna Rada of the draft law "On Environmental Insurance", which provides for creation of the Bureau of Environmental Insurance, Forinsurer said.

According to the draft law, the Bureau is a self-regulatory organization and can establish rules and conditions for its members for environmental insurance. The entrance guarantee fee for the first year of the Bureau's activity is UAH 2 million (~EUR 63.5 thousand), and further fees are to be set by the general meeting of the Bureau members in agreement with the coordinating council but cannot be less than EUR 100 thousand.

The draft law proposes to establish an insurance rate for the first five years from the date of entry into force. In the next five years, it can be changed under a separate written request from the Bureau to the actuary selected. The insurers-members of the Bureau will pay compensation in the amounts established by court decisions, at the expense of the guaranteed reserve insurance fund of the Bureau. The limit of liability for damage to life and health of third parties is UAH 500 thousand per one deceased or injured person (but no more than UAH 5 million for those injured as a result of such an event).

Adoption of this draft law will create conditions for: introduction of a mechanism for compulsory insurance of civil liability for damage caused as a result of violation of legislation on environmental protection; reduction of budgetary expenditures for elimination of emergencies; strengthening control over potentially hazardous activities; and improving environmental safety.

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