Fundação Renova

Renova Informs: Progress of General Damage indemnities and time frames of Resolutions 111 and 119

Published in: 03/29/2018

Renova Informs

The Mediated Indemnity Program (PIM) was created with the objective of repairing physical and legal persons (micro and small companies) for loss of income and for material or moral damages caused directly by the Fundao dam collapse.

CIF Resolutions No. 111 and No. 119 determined the deadline March 31, 2018, for the General Damage indemnity payments of Registration Campaign 1, and June 29, 2018, for Registration Campaign 2. It is worth remembering that Resolution 119 is also considered the starting point of this indemnification process, dated October 23, 2017.

The Renova Foundation admits that the process has required constant learning, surrounded by complex variables. Campaign 1 for General Damage is an important process on how to efficiently operate reparations on a scale that has never been seen before in the world, in terms of number and diversity of people and damages, as well as in territorial extension and, especially, in a highly informal setting, where most of the damage cannot be proved with documentation.

The Mediated Indemnity Program, therefore, is facing several challenges: relational (multiple players involved in its construction), learning (understanding of Indemnity Policies by various spheres), technological (information systems in constant adjustments to the changing rules), operational (mode of operation in frequent changes), among others.

The Renova Foundation has reorganized itself internally to speed up the indemnification process, understanding the impact that time has on the lives of those affected, and despite not meeting the first indemnity deadline, it guarantees the completion of the two campaigns by June 29 of this year.

Our efforts have led to a huge leap forwards in the number of payments part of Campaign 1, from only 300 in early February, to 1887 payments until March 27, 2018. Another 600 cases have already been submitted for payment in the coming days, and more than 1000 signed agreements will also be accounted for in the coming days.

We are continuously re-evaluating our processes to improve and streamline all payments with legal certainty. We have increased the staff working on the PIM program, improved the network infrastructure and internet services in the offices, built strategies integrated with other Renova Foundation programs to ensure the team only focuses on the indemnity process and management of the PIM offices. We have also trained the teams and offer work tools such as operational checklists, communication flows on exceptionalities, reinforcement of the strategic team to expedite the elaboration of complex indemnification proposals, reinforcement in the compliance and payment team, and improvements to the System and Database. All these actions are aimed at meeting the new deadline.

The Renova Foundation does not intend to exempt itself from its responsibility and acknowledges the difficulties and mishaps encountered for non-compliance with the deadline (March 31, 2018), but thinks it is important to show the challenges that are being faced for this purpose, which can be summarized by the need to speed up the indemnities, against the Program’s uniqueness, requiring learning while doing, which is not an easy task.

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