categorytitle / Research Update .
  • time : 00:00
  • Date : Wed Jan 05, 2022
  • news code : 5110
The Risk of Dangerous Goods and Industrial Wastes
Goods generally pose two types of distinctive risks including damage to the goods and the damage caused by the goods. The coverage for the damages to the goods is well-received in the insurance industry while the losses incurred due to the risks posed by the dangerous goods and industrial wastes that are highly significant for the environmental protection have not been merited equally.

Due to their flammability, toxicity, corrosiveness, and etc., hazardous industrial goods and wastes if not cared well, may pose considerable potential risks to the environment and cause massive losses. Thus, certain regulations have been enforced for their transportations either in local or international level. On the other hand, one of the requirements of the sustainable development and environmental protection is compensation for the environmental losses including loss of lives and properties.

Given the significance of this issue, a research project titled “The Risk of Dangerous Goods and Industrial Wastes” was conducted by Dr. Medrik Pirsaheb, Liability Insurance and Specialty Insurance Deputy of Iran Insurance Co. under the supervision of the Catastrophe Insurance and Big Losses Desk of IRC, according to Public Relations Office, IRC.

The findings of the study indicate that the coverage for the losses of the goods is popular in the insurance industry and it is for years that insurers offer shipping insurance. Likewise, with respect to the liability of the domestic and the international transportation officers to the owners of the goods by road, the insurers act based on CMR Convention in offering insurance covers for the shipped products.However, no measures have been taken regarding the losses incurred by the goods themselves and no specific terms and conditions are drafted in this regard, yet. This could be partly due to the insurers’ concerns regarding the pertaining large scale losses, their insufficient understanding of the environmental losses or the know-how of assessing such losses. Nevertheless, what is clear is that the risks associated with the hazardous goods and industrial wastes are insurable. And, insurance companies can underwrite them. However, since managing the claim payments is one of the concerns of the insurance industry, it is suggested that as Basel Convention (regarding international transportation of hazardous wastes), the compensation limit be determined and above that limit, neither the instigator of the loss nor the insurers would be accountable for paying the compensation.

In view of this, it is further suggested by the researchers that Central Insurance of I. R. Iran (CII) draft the general terms and conditions of the policies covering the losses caused by the hazardous and industrial goods and wastes. Accordingly, the insurers in collaboration with the Department of Environment of I. R. Iran must attempt to assess the risks associated with the environmental losses and estimate the payments.

Likewise, the insurance companies in order to properly manage the risks of the hazardous and industrial goods and wastes can issue the relevant policies with a certain limit for the claim payments. The Department of Environment as the major institution for protecting the environment must seriously involve with the insurance companies in this regard, though.

Those interested to access and download the Persian full text of the research project, please visit https://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1540.

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