The Role of Environmental Insurance as the Prevention Effort of Environmental Pollution

Abstract

Various efforts have been developed to reduce the environmental pollution, such as the approach of policy, company management, and social support. In the level of policy, there is a corporate social responsibility as formulated in Law Number 40 of 2007 on Limited Company besides the system of environmental impact analysis (AMDAL) as regulated in Law Number 32 of 2009 on Environmental Protection and Management. In the level of law enforcement, the principle of strict liability demanding the doers give an impact on the environment showing that they are not responsible for the reverse verification system as the intended efforts. In the level of company management, the introduction of ISO 14000 as the management system that places the environment as the basis for its implementation is another approach attempting to reduce the level of environmental pollution. However, the level of environmental pollution is not decreased significantly. The concept of environmental insurance implementation is the effective way to reduce the environmental pollution.