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Decree No. 447/19

Decree No. 447/19

On July 1, 2019, Decree No. 447/19 that establishes a new regulatory framework for Mandatory Environmental Insurance (“MEI”) was published in the Official Gazette. The new regulatory framework will enter into force 90 business days following its publication (the “Decree”). 

Even though the Decree ratifies that guaranty insurance is a valid tool to comply with the MEI requirement, it includes insurance with transfer of risk or other financial instruments or insurance plans as valid insurance to meet the requirement imposed by section 22 of Law No. 25,675. 

The existing coverage and insurance plans to be approved shall guarantee the actual reparation of the damage caused, up to the minimum insurable amount. 

The Executive Branch justifies the measure taken on the grounds of “the need of addressing a general claim of the production sector intended to include in the market new insurance coverage that is significant enough to guarantee funding for the reparation of the damage it may cause”. 

The Decree empowers the Government Secretariat of Environment and Sustainable Development subordinate to the General Secretariat of the Presidency and the Argentine Superintendence of Insurance to issue supplementary regulations, as pertinent. 

Lastly, the Decree repeals Decree No. 1638/12, whose the effects were suspended by an injunction. 

Government officials have informed, off-the-record, that they expect that the Decree will include new types of insurance among those allowed thereunder by permitting the “transfer” of the risk to the insurer. 

We remain available should you have any questions or require any clarification. 

Regards,

  

   Guillermo Malm Green                             Agostina Mandrini