Philippines:Representatives pass Bill on environmental insurance coverage

The House of Representatives has approved the final reading of a Bill requiring environmental insurance coverage for environmentally-critical projects (ECP) in order to protect the country's ecology and natural resources.

To be known as the Mandatory Environmental Insurance Coverage Act, the Bill has been transmitted to the Senate following its passage in the lower chamber on 1 June. The Bill was authored by Deputy Speaker Rodante D Marcoleta.

The Bill defines an ECP as a project that has high potential for significant negative environmental impact. Among these are resource extractive industries and infrastructure projects, reported Manila Bulletin. Under the new law, when passed, owners and operators of ECPs are required to secure mandatory environmental insurance coverage to compensate for damages to health and property, environmental rehabilitation, remediation and clean-up costs resulting from impairment or damage to resources triggered by the projects.

The insurance coverage must be acquired before construction or commercial operations can start. An insurance company contracted for the coverage is required to pay all claims to a special escrow account in government depository banks, which shall in turn disburse the corresponding payment to beneficiaries.

Mr Marcoleta underscored the need for mandating environmental insurance for ECPs as he recalled numerous incidences of the destruction of natural resources, agricultural and sea resources resulting from man-made environmental destruction.

One incident was the 1996 Marcopper mining tragedy in Marinduque that destroyed several hectares of farmlands and led to the biological death of the Boac and Makalupnit rivers.

Source: Asia insurance review

News Update (insurancealerts.in)