Recently, the Albanian Council of Minister has approved the Decision no. 268 dated 02.05.2024 (the “DCM”), “On the approval of economic operators’ categories, that own or manage equipment or installations under pressure, that are oblige to enter into civil liability insurance contract and the minimum limit covered by the insurance contract”.
The DCM was enacted upon issuance in the Official Gazette no. 78 dated 07.05.2024. It was issued in accordance with the Law no. 32/2016 “On guaranteeing the safety of the operation of the equipment and installations under pression” (the “Law”).
The Law provides a set of conditions and requirements that must be respected by the economic operators that use or manage equipment and installations under pression, to guarantee the safety of life, health of people and animals, the environment, and material possessions from eventual risk of damage that such equipment and installations present.
Both the Law and DCM purpose is to guarantee the environment, life, health and private property safety from the risks caused due to the use of such equipment and installations.
Among others, the Law provides that before placing and during the use of equipment/installations under pressure, the economic operators, who own or manage them, must be equipped with the civil liability insurance contract. The civil liability insurance contract must be valid during the entire period of use of such equipment/installations, to guarantee coverage of damages that may be caused to the environment, life, health and private property.
In accordance with the Law, the DCM determines the categories of economic operators that are subject to such obligation as well as the minimum threshold of responsibility covered by the civil liability insurance contract. In addition, the DCM provides in more details the specifics of the pressure vessels by type, pressure volume and their risk classification:
Categories of economic operators that are subject to enter into the civil liability insurance contract
Under the DCM, subject to the such obligation are the entities operating in the following industry sectors and own and/or use equipment/installations under pressure to carry out their commercial activities:
1. Entities providing services to third parties in the following sectors:
- Wholesale or retail fluids trading;
- Extraction/production and processing of fluids/hydrocarbon;
- Transportation of various cylinders;
- Construction;
- Transportation by tankers;
- Production/processing/trade of food products;
- Restaurant/food services;
- Accommodation/tourism;
- Social service;
- Health service;
- Educational institutions;
- State institution/entity;
- Production/processing/trade of non-food products;
- Production and processing of technical/medical gases;
- Wholesale or retail technical/medical gases trading;
- Railway services;
- Marine services;
- Maritime tourism activities;
- Individuals and legal entities operating in the field of fire protection and rescue, that
- during their activity use pressure vessels (fire protection systems).
2. Entities that use and/or administer pressure equipment, as follows:
- Steam and hot water boilers in production;
- Equipment under stationary pressure/LPG tank (liquefied petroleum gas);
- LPG cylinders (transportable equipment under pressure - TEUP);
- Simple pressure equipment/stationary;
- Cryogenic containers for technical hydrogen/oxygen gases (including TEUP);
- Technical and medical gas cylinders (TEUP);
- Other TEUP;
- Hydrocarbon/fuel reservoir;
- Technological/industrial lines;
- Fire extinguishing equipment and stationary fire extinguishing equipment.
Under the DCM the minimum insurance coverage is determined in proportion with the risk classification of the equipment/installation under pressure.
The mandatory insurance must be completed upon the registration of the equipment/installation at the State Technical and Industrial Inspectorate, in accordance with the procedure provided by the Law, and it must be renewed without disconnection, throughout the entire period of use of them.
The Law provides that the economic operators that that fail to comply with the obligation of the Law to enter into civil liability insurance contract shall be subject to a penalty amounting ALL 500’000.
Please note that in event the state inspectorate responsible for equipment/installations under pressure inspects repetition of violations of the above obligation, might suspend the commercial activity of the economic operation until the obligation is fulfilled.
KPMG team remains at your disposal for any inquiries you may have, or assistance needed.
For information
Juliana Mateeva
Partner, Legal Advisory Services
Tel: +359 2 9697 600
Arjola Goxhaj
Manager, Legal Advisory Services
Tel: +355 42274 524
Ergisa Hasanbelliu
Senior Associate, Legal Advisory Services
Tel: +355 42274 524