A new tax is coming to Italians: The budget law approved by the Meloni government introduces a new compulsory insurance system that “covers damages caused by natural events and disasters”. As stated in Article 24 of the 2024 Budget, Italian companies are obliged to conclude insurance contracts to cover damages resulting from disasters and catastrophic events such as “earthquakes, floods, landslides, floods and floods”.
As stated in the final version of the text viewable by Today.it, innovation is being introduced in order to “ensure the sustainability of public expenditures and protect the economic and social fabric of the country.” Catastrophic events in Italy have high costs for the State, which is asked to intervene in aid costs for first aid, reconstruction of basic public infrastructures, and reconstruction of homes and industrial/commercial complexes. Interventions whose costs are increasing year by year and are no longer sustainable for the public purse.
Therefore, the government considered introducing a coverage system for damage resulting from catastrophic events by obliging companies to enter into insurance contracts to cover damage caused by natural disasters within a year. The state will act as regulator and reinsurer through insurance obligations and public participation. But let’s look at the rule in detail.
New climate tax: compulsory insurance is coming
Businesses based in Italy or with a workplace in the country must have an insurance contract until December 31, 2024. These contracts will cover damages resulting from events such as earthquakes, floods, landslides, floods and floods. Failure to comply with this obligation will have consequences on the provision of contribution or financial assistance by the State, even in dire events. In short, those who do not have insurance may be deprived of government aid. Only agricultural enterprises are excluded because they are already covered by another fund, the AGRICAT Fund.
However, companies whose real estate assets are burdened by abuse or built without the necessary permits will not be insured.
To avoid cost explosion, private insurance companies can transfer part of the risk to the Ministry of Economy SACE SpA company, which offers coverage of up to 50% of the compensation payable in case of accident. This system is supported by a state guarantee and a special fund, supported by insurance premiums paid by companies. A fund with an initial fund of 5 billion euros is being financed for this purpose. Insurance companies will have to adapt policies and provide any overdrafts or deductibles not exceeding 15 percent of the value of the insured goods.
There are other details that are certainly overshadowed in the new budget law, but are no less important. Here they are listed in the special section of Today.it for the 2024 maneuver.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
