Although the Environmental General Law instructs the Ministry of the Environment and Natural Resources, together with the Ministry of Economy, to issue the necessary provisions to establish mandatory civil liability insurance to cover damages to the environment and natural resources accidentally caused, environmental risk insurance is yet to be developed in the Dominican Republic. In addition, the Insurance General Law No. 146-02 does not specifically provide for environmental risk insurance.
Nevertheless, the Environmental General Law sets forth the obligation to obtain a compliance bond for all companies or persons responsible for activities which require an environmental permit or licence. The purpose of this bond is to assure compliance with the provisions of the environmental authorisation and ensure execution of the environmental management plan approved by the environmental authorities for the operation. The amount of the bond is 10% of total cost of the physical works or investments required to fulfil the environmental management plan.
Regardless of existing legislation, insurance companies have not yet created, under the heading of “environmental risk insurance”, all the contingencies related to the impact on the environment. It is possible to obtain a variety of insurance policies that provide companies with a partial solution to the requirement, among them: (i) Social Liability Insurance; and (ii) Social Liability Insurance for Industrial Risks. In particular, the terms and conditions of the latter must be agreed upon with the insurer for each specific case.
If you wish to read detail information in environment as well as Quiroz Santroni’s performance and expertise in this legal practice, please visit: The International Comparative Legal Guide for Environment and Climate Change by 2015