Embed Size (px)
Citation preview
Sustainable
Effective
Environmental
Protection
the Companywho cares
FIRST GLOBAL GREEN INSURANCE
Legal Documents
ENVIRONMENTAL INSURANCE(Copyright Reg. No. 02009-726) Owners : E.R. Manuel/R.M.Rubio
SEC Reg. No. CS 201006539April 29, 2010
Introduction :
There is a universal concern of both government and non-government organizations and groups, for the sustainable development and protection of theenvironment.
More developed countries, notably in Europe, have seen it fit to “MANDATE” compulsory POLLUTION liability insurance on ALL corporations whose activities have impact on soil, air, water ... NATURAL RESOURCES as a whole.
The Philippines, very reliant on its natural resources and long acknowledged to be a major tourists
favorite, should protect the many scenic spots, the patrimony of this nation ... for the benefit of the
present and upcoming generations.
For Filipinos to continue having a CLEAN and GREEN COUNTRY which provides decent sustainable
livelihood, we should seriously consider as a must,
“ENVIRONMENT IMPAIRMENT INSURANCE”or simply
“ENVIRONMENT INSURANCE”
What are the types of Environment Insurance?
1. ENVIRONMENTAL POLLUTION LEGAL LIABILITY INSURANCE OR SIMPLY POLLUTION LEGAL LIABILITY (PLL)
To protect against claims of Third party off-site bodily injury (BI), property damage (PD), including clean-up costs arising from pollutive conditions emanating from insured’s site. Property damage owned by the Third parties can be direct damage or loss of use of the property. This cover should be a must for Treatment, Storage and Disposal (TSD) facilities.
This insurance coverage can be tailored to include on-site cover for the Third party, BI and PD. In addition, the cover can be extended to include owned transportation, vendor transportation, and non-owned disposal sites.
2. ENVIRONMENTAL IMPAIRMENT INSURANCE
To include more than just liability but also First party pollution
remediation insurance.
3. REMEDIATION OR CLEAN-UP COST (STOP LOSS) INSURANCE
This indemnifies the insured for financial losses that arise when
the anticipated cost of a remediation project is exceeded.
It is basically an “over-run” insurance cover. This coverage is
necessary and should be resorted to by investors acquiring
“contaminated” property or property owners who are cleaning up
non-operational assets/properties.
4. GENERAL CONTRACTORS POLLUTION LIABILITY INSURANCE
This protects general contractors against suits/claims alleging Third party
BI and PD arising from pollution conditions while working at customer site such as maintenance operations, process piping, and underground work, (ex. Drilling, excavation, painting or re-grading operations).
5. HOSPITAL POLLUTION LIABILITY INSURANCE
This covers environmental mishaps such as injuries suffered by hospital visitors from incidents such as incinerator emissions, HIV or other contaminations, infections from pathological wastes, red bag wastes, etc.
6. UNDERGROUND STORAGE TANK POLLUTION (UST)
This cover claims for on-site as well as off-site clean-up coverage for both above and under ground storage tanks which release toxic
substances into the environment.
7. ENVIRONMENTAL PROFESSIONAL / E & O LIABILITY
INSURANCE
This coverage is intended for professionals, engineers and
architects in the environmental control systems business.
8. WASTE TRANSPORTATION POLLUTION INSURANCE
This covers the waste transportation entities for BI and PD or clean-up due to a
release of toxic or harmful substances in the course of transporting
the waste materials. Marine pollution insurance cover is an
extremely important option for this item
9. CLOSURE / POST CLOSURE INSURANCE
Applies to the closure of treatment storage and disposal facilities
(TSD) to satisfy financial responsibility requirements. It is more of
a financial guarantee that the TST Owner/Manager will properly
close and maintain the site for a specified period of time.
10. TIME ELEMENT POLLUTION INSURANCE
The coverage is included in large excess liability policies (e.g. over US$ 25 Million). Under the terms of this cover, sudden release of deleterious substances will be covered and the pollution incident should be discovered within 7 days from commencement, and subsequently reported to the insurer within 30-45 days from discovery date.
* Note: The above-named insurance coverage shall have an agreement limit and all claims from pollution incident are considered as a single loss with one per loss limit (inner limit).
Defense costs against suits alleging damage suffered from an occurrence is included but within the limit specified in the policy schedule. In order to prevent spiraling of claims costs (and subsequently bringing up the cost of insurance), punitive damages is excluded from the cover.
IMPLEMENTATION SCHEME / METHODOLOGYOF THE ENVIRONMENTAL INSURANCE
1. Require all environmentally critical business (commercial,
industrial, warehousing) who apply for a license to operate /
business permit, to show proof of adequate bank deposits
escrowed for pollution clean-up funds, OR to present an Environmental
Impairment Insurance policy providing for payment or damages
and restoration of environment and finally restitution of losses
to livelihood, as a result of pollution, pollutants from operations
and/or products of the business firm.
In lieu of such bank deposit, the business firm may present
an Environment Impairment or Pollution Liability Insurance
Policy and proof of premium payment from a duly accredited
insurance company. This should be included as a supporting
document for the Business Permit issuance.
In a nutshell, Environmental Impairment or Pollution Liability Insurance shall include the specific benefits enumerated below with the estimated limits of liabilities applicable to a business operation in a certain community, specified in the policy schedule :
Clean-up and mitigation expenses to be incurred ... Rehabilitation expenses to be incurred (to reinstitute livelihood
opportunities) ... Direct impact or loss of livelihood of community (allow 2-3 years
recovery) ...
Indirect consequential losses, such as loss of future revenues due to loss of stature of the community as a prime tourists or eco-tour destination; or reduction of real estate value as a premier residential estate as a result of pollution, whether actual or sentimental.
Looking at previous catastrophes, and the subsequent damages caused and the cost of clean-up measures undertaken, a minimum P50 Million limit of liability is recommended, with higher limits imposed on bigger, riskier and more extensive ... area wise ... business operations.
2. Require business firms to specify a schedule for the annual visitof accredited (by the provincial governor / mayor) environmentalrisk managers from the insurance sector who can suggest ways andmeans of preventing/minimizing losses with their risk management studies, thereby averting aggravations in the situation, with their loss control studies and recommendations.
The loss control survey report will be submitted to the business firm for their action / implementation of recommended measures, with copy to the Provincial Governor/Mayor, for monitoring purposes. Thus, aside from the insurance system being able to provide a more reliable means of responding to environmental disasters, such may be prevented, or at the least, adverse effects of an occurrence, are minimized with the risk management / loss
3. The formation of a “Green Police Unit’ to oversee the ENVIRONMENTAL IMPAIRMENT concerns and to administer these procedures would go a long way towards protecting the environment and ensuring its sustainability for the longer term.
To be effective in monitoring loss prevention measures undertaken, we would need to organize a duly authorized outfit of dedicated “Green Policemen” to be aware of the environmental impact of the so many business / industrial activities that threaten the environment, to include even those companies engaged in seemingly benign natural resource exploitation, and to call the attention of the business owners, should the possibility of an occurrence manifest itself.
The fundamental essence of the “Green Police” Unit is similar to the Forest Rangers, except that the “Green Police” Unit has administrative and punitive, in addition to police, powers, concerning the care of the environment. However, in addition to the police responsibilities, the “Green Police” Unit will undertake extensive educational initiatives through regular symposia and conferences (twice a year) and the like, in both public and private schools, starting from Primary, all the way to tertiary level - Colleges/Universities.
The office and resources of the Secretary of Education and the Administrator for Commission on Higher Education will be tapped to ensure the Nationwide dissemination of information relative to combating environmental impairment / pollution activities, and undertaking the proper response in the event of an environmental impairment actually occurring.
CONCLUSION :
The effective implementation of the “ENVIRONMENTAL INSURANCE” system for the sustainable development and protection of the environment will be assured by:
Mandating the presentation of proof of the capability of the business enterprise to clean up areas that it has polluted to the detriment of the people, livelihood and the environment in general, via insurance or escrowed funds.
Having a Pro-active response to the prevention of contamination or pollution of the environment, through the employment of loss prevention techniques. Immediate and long-term responses to prevent and minimize damage to environment through the “Green Police” Unit which are endowed with educational and Police powers / responsibilities.
“With our collective pro-active response to care for the Environment, we are optimistic that ALL FILIPINOS, including the future generations, will continually enjoy the gifts from our MOTHER NATURE ...
blessings given to us by the ALMIGHTY FATHER, in an atmosphere of sustainability, generosity and harmony, where there will be no more conflict, wars and covetousness, as there will be enough and enduring resources for everyone to share and enjoy...”
Lets GO GREEN
Thank You !
