Fundação Renova

Registrations for the Mediated Indemnity Program for Water Damage close with a participation of 98%

Published in: 11/09/2017

Indemnities , Indenizações

The aim of the PIM-DA is to reimburse the damage caused by the lack of drinking water supply and distribution after the dam collapse

After serving more than 174,000 people in Minas Gerais and around 84,000 in Espirito Santo, the deadline for joining the Mediated Indemnity Program- Water Damage (PIM-DA) was met in nine of the ten served towns. In Naque, it will end on November 30. In total, over 258,700 people signed up and 98% of them agreed to the compensation proposals. So far, more than R$ 172 million has been paid.

In total, more than 258,700 people signed up and 98% of them agreed to the compensation proposals. So far, more than R$ 172 million has been paid.

In total, more than 258,700 people signed up and 98% of them agreed to the compensation proposals. So far, more than R$ 172 million has been paid. | Image: Gustavo Baxter / Nitro

The objective of the program is to reimburse the damage caused by the lack of drinking water supply and distribution after the dam collapse in an timely manner and without the procedures and costs of a lawsuit.

The PIM – DA is intended for all people living in the towns and districts that had their water supply interrupted for more than 24 hours due to the collapse of the Fundão dam in November 2015. These sites used the Doce River as an exclusive resource for local water distribution.

The indemnity amount was calculated considering the period when the locations were left without water supply and distribution services in November 2015, based on the average amount of the water bills. For towns that were left without water supply for up to five days, the average amount of the bills was multiplied by 12 (months). In towns where the interruption lasted over five days, the value was multiplied by 14 (months).

In Governador Valadares, for example, the average amount of the bills for the 14-month period was approximately R $ 1,000.00 per household. However, considering all the impact caused to the population, the Renova Foundation chose to adopt this amount not by household, but for each individual impacted in this town. In Colatina, due to the period that the town was left without supply, the indemnification was set at R$ 880.00 per person.

The PIM is being implemented in Governador Valadares Since October 2016. In the municipality, over 147 thousand people have been served so far. In Naque, the deadline for joining ends on November 30.

Indemnity for minors and disabled

To indemnify minors and disabled, the process is conducted differently, as required by law. The Renova Foundation can only make the payment after authorization of a judge. Therefore, all the Conciliation Terms that include the indemnity of minors and disabled have to go through a process called homologation. The entire process is conducted by the PIM team, without the need to hire lawyers. Once the court has verified that the indemnity process is in order, the Foundation may initiate the payment to these people. The payment is made within 90 days after signing the homologation.

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