The draft law proposes to strengthen guarantees of compensation to victims in case of violation by business entities of the requirements of current legislation on compliance with the rules of man-made and fire safety.

The bill, in particular:

- streamlines the procedure for conducting inspections of business entities for man-made and fire safety;
- reduces administrative pressure on business entities by abolishing mandatory inspections in the case of a liability insurance policy to third parties for damage that may be caused during the operation of high-risk facilities;
- provides guarantees for compensation for damage that may be caused to life, health, property of third parties and the environment as a result of a dangerous event in areas, real estate and / or high-risk objects, including fire and explosion facilities and projects where economic activity can lead to accidents of ecological and sanitary-epidemiological nature;
- improve the coordination mechanism between the relevant supervisory authorities, economic operators and institutions providing financial services;
-  improve the procedure of legal, organizational and financial response to the consequences of events that occurred as a result of man-made accidents and fires, in particular regarding the interaction with the victims.

Thus, in the case of an entity with medium and / or insignificant degrees of risk (except for enterprises, institutions, organizations of state and communal ownership, high-risk facilities, including fire and explosion facilities and facilities, business activities which may lead to accidents of ecological and sanitary-epidemiological nature) of the current contract of voluntary civil liability insurance of economic entities for damage that may be caused to life, health, property of third parties and the environment as a result of a dangerous event that may occur on the territory and / or real estate, the frequency of scheduled inspections of such entities is increased by the term of the liability insurance contract, but not more than six consecutive years - for businesses with medium risk and not more than ten consecutive years - for business entities with a low degree of risk.

It is provided that the liability insurance contract is concluded in accordance with the application of the business entity on the basis of the act of assessment of the territory and / or real estate for compliance with the requirements of man-made and fire safety. This act determines the amount of estimated losses that may occur in the event of a dangerous event, which is the basis for determining the minimum sum insured.

In case of early termination of the liability insurance contract, the insurer within ten working days from the date of termination of the contract shall notify in writing the central executive body, which carries out state supervision in the field of man-made and fire safety.

Please note that the document sets out the requirements for such an agreement, in particular regarding information about the conclusion of the relevant agreement. Thus, the insurer and the business entity submit information on the conclusion of the contract of liability insurance of the business entity to the central executive body, which carries out state supervision in the field of man-made and fire safety.

According to the explanatory note to the bill, the bill strengthens the responsibility of business with a parallel increase in the level of guaranteeing compensation for victims and contributes to the harmonization of Ukrainian legislation with European Union legislation in the field of security of high-risk facilities.