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RBI report advocates for Green Insurance concept

India CSR by India CSR
June 29, 2016
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India CSR News Network

MUMBAI: An RBI report has favoured the green insurance cover in its Financial Stability Report which was released by it here on June 28, 2016.

“Green insurance helps in mitigating and managing ecological and environmental risks. Such insurance policies cover potential liabilities arising from the pollution of water, land or air or collateral damages to the ecology and environment by policyholders,” it said.

“These policies will help in not only providing indemnities for ecological and environmental losses but will also help in the restoration of ecological damages,” it added.

This is more the case when the compensation for third party large losses (more than Rs 25,000) is currently not covered by extant insurance products under the Public Liability Insurance Act 1991.

Further, all companies or legal bodies engaged in green activities may be required to subscribe to these green insurance policies. Therefore, green insurance may be offered as a cover which will also help in internalisation of environmental costs by the companies, it said.

(Reported by India CSR Correspondent) 

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