Basel Protocol Financial limits and insurance Katarína Lenková SEA CWEM Bratislava, Slovak Republic Warsaw, 18 – 20 January 2006

2 Insurance and regulations Environment Transportation Banking and insurance

3 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

4 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

5 Environmental legislation (3) Guarantee Calculation formula: (Length of route*30 + costs of disposal*waste amount for one transport) *1.5 Rate per ton of waste: LandfillingHW $ 100 Non-HW $ 50 IncinerationHW $ 500 Non-HW $ 83

6 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

7 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

8 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

9 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

10 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.

11 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

12 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

13 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

14 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.

15 Regulations concerning banking and insurance (5) Insurance companyInsurance services AllianzPersons, property, motor vehicles, capital life insurance UnionLife and pension, bussines, travel, health, injury, property UniqaLife, capital life insurance, insurance against injuries,motor vehicles, living-in, travel, legal protection AmslicoLife insurance and insurance against injuries

16 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

17 Basel Protocol Thank you for your attention