Environmental

Insurance for hazardous activities to the environment

On November 21, 2007, the Secretariat of Environmental Policy issued Resolution Nº 1639/2007 that substituted Annexes I and II of the Resolution Nº 177/2007, that established the requirements for contracting the insurance provider, which in turn had been established by section 22 of the Environmental Framework Law.


While Annex I contained a list of the types of activities that are considered hazardous to the environment according to the criteria of the International Classification of Activities, Annex II sets forth a formula for determining the level of the environmental complexity of each activity. Therefore, if the activity was listed in Annex 1 and the level of the environmental complexity was either medium or high, the individual or legal entity performing the activity must contract an insurance provider for potential environmental damages.

The novelty brought by Resolution Nº 1639/2007 is that some activities that were originally included in Category Nº 3 were reclassified in Category Nº 2. Taking into consideration that each group has a value that is counted at the moment of using the formula, the lowering of that value may possibly have decreases the level of environmental complexity.


For further information on this topic please contact María Morena Del Río