The Chilean government reported on Friday that it completed the process of contracting an insurance against strong earthquakes for 630 million dollars with the World Bank.
“The annual premium for the insurance contracted with the World Bank reached 4.75%, with coverage of 630 million dollars,” the Ministry of Finance detailed in a statement.
“This insurance will allow Chile to receive pre-established compensation payments for up to the maximum coverage, in the event of certain high-intensity parameterized seismic events that cause material damage to the country and public finances,” he added.
He explained that the payment is subject to the phenomenon exceeding a certain threshold, the area and depth. “The insurance provides for a specific payment associated with the event that, on average, occurs approximately every 70 years.”
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