With the entry into force of the Budget Law 2024, companies with legal headquarters or a fixed establishment in Italy are required to enter into insurance contracts by December 31, 2024, to cover damages resulting from natural catastrophic events (Article 1, paragraphs 101 to 112, Law 213/2023). However, less than a year from the deadline, uncertainties persist regarding the implementation of this obligation.
The uncertainties.
Fulfilling this obligation seems contingent on the issuance of a joint decree by the Ministries of Economy (Mef) and Enterprises (Mimit), which will establish the construction methods and structural rules for insurance models suitable to meet this requirement. Despite the law deeming the decree optional, its necessity arises from the presence of clear points to define, such as the methods for identifying catastrophic events subject to compensation.
Currently, businesses face a practical challenge, as the deadline approaches, but the specifics of mandatory policies are still unclear. The situation is further complicated by the possibility that the implementing decree may be issued without a defined deadline.
Key points.
However, some key points are already clear:
- The obligation does not involve agricultural businesses, as they are already regulated by the National Mutualistic Fund for coverage of meteoroclimatic catastrophic damages, as established by the Budget Law of 2022.
- The obligation pertains to damages directly caused by earthquakes, floods, landslides, inundations, and overflow, excluding events such as hailstorms. Sanctions.
The sanctions.
Regarding sanctions for non-compliance, monetary fines are not foreseen. However, the insurance obligation is linked to the allocation of contributions, subsidies, or financial benefits from the public sector. The nature of the penalty in the use of such funding remains ambiguous at present, and clarification on this point will depend on the implementing decree.
In conclusion, businesses are urged to act promptly to comply with the insurance obligation before the imminent deadline, despite current uncertainties. The focus is now on the implementing decree and how administrations will formulate calls for the distribution of public resources, introducing additional details and clarifications on the new insurance obligation.
