The primary objective of this Model Law is to prevent environmental damage and ensure compensation and restoration when harm occurs as a result of economic and other activities. As a model (recommendatory) legal act, it is intended to harmonize legislation among CIS member states and guide national lawmakers in developing consistent environmental insurance systems. The Law defines key concepts such as environmental damage, risk, pollution, and participants in insurance relations, and outlines the scope of application. It regulates both mandatory and voluntary environmental insurance, with mandatory coverage required for high-risk facilities (categories A and B). The framework specifies the roles of insurers, policyholders, beneficiaries, and state authorities, and establishes rules on insurance contracts, financial stability, reserves, and the creation of a state guarantee fund to compensate damages when insurers or liable entities fail to do so. In addition, the Law details the organization and regulation of environmental insurance, including types of coverage (such as liability insurance for environmental harm and financial risk insurance), procedures for compensation, and preventive measures financed through insurance reserves. It emphasizes state oversight, financial safeguards, and international cooperation, particularly in cases of transboundary pollution. The act promotes coordinated action between states, including information exchange, joint mechanisms, and reinsurance pools, to ensure effective prevention and remediation of environmental damage.
2014-04-18