ENVIRONMENTAL INSURANCE

Abstract

The liberal capitalist economic development of the country leaded by economic and social development plan since the first into the tenth plan, focusing on accelerating the economical growth alongside with increase industrial production. This results in ignorance of the effect to the environment, creating pollution in noise, water, air and soil. All of this were caused by accidents and the carelessness of process and the lack of preservation of raw material, as well as, by the transportation of hazardous material and waste. This would affect to the environment, ecology, health and the living of human, as well as flora and fauna. Resulting in damage to enormous area which cause handship to many people to compensate.

Environment insurance was another way to compensate the affected and to give the financial stability to the entrepreneur who may have created pollution so that they don’t have to totally shoulder responsible to the cost of restoration and compensation caused by the gargantuan damage. Therefore, environmental insurance should be considered and studied as another way to ease environmental problem.