ABSTRACT
Insurance, by definition, takes into account hazards, also covering therein the hazard of pollution, and should intervene at the level of the loss suffered and the follow-up action for redressal thereof. As of 31 December 1993, three types of contracts could be executed between industrialists and insurance companies to cover the risks of pollution. They are the insurance for civil liability, 'fire insurance' and more specific policies, and a policy covering environmental damages. Given the large costs associated with environmental damages, framing a policy for reduction of pollution risks appears more and more justified and indispensable. The policy for reduction of pollution risks should emphasise three types of action: prevention, protection, and employment of safety measures. A document published in 1992 by the European Community with reference to the Community's policy and action programme for the environment furnishes some examples of the period of return of industrial investments associated with low-pollution technological changes and abatement of environmental degradation.
