A remarkable step from Chile, shaken by the biggest earthquake in history

Chile will enter into an insurance contract with the World Bank as a precaution against possible severe earthquakes in the countries with the most earthquakes in the world.

The Chilean Ministry of Finance announced yesterday that the government has reached the final stage of its agreement with the World Bank against earthquakes that may affect fiscal policy and the country’s public debt. “This insurance will ensure that Chile receives predetermined compensation payments in certain high-intensity seismic events that will cause property damage in the country,” the statement read.

It was noted that the terms of the deal will be announced in a few weeks. The Chilean government says it has been working with the World Bank on different earthquake insurance since last year.

Located in the seismic belt known as the Pacific Ring of Fire, Chile was rocked in 1960 by a magnitude 9.5 earthquake, the largest earthquake ever recorded in the world. More than 1,600 people died in the earthquake that occurred in Valdivia, Chile, millions of people were left homeless, and material damage exceeded 500 million dollars.

In Chile, which has cracked down on earthquakes, more than 500 people died in the 2010 magnitude 8.8 quake.