Decline in value "Who qualifies?"

Groningen Mining Damage Institute

Three algorithms used by the Mining Damage Institute Groningen (hereinafter IMG) to assess whether a property is eligible for compensation for depreciation.

Last change on 17th of September 2024, at 12:39 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: DPIA
• Status: In use

General information

Theme

• Public finance
• Living
• Nature and Environment

Begin date

2020-09

Contact information

[e-mail] en [e-mail]

Link to publication website

www.schadedoormijnbouw.nl/regelingen/waardedaling

Responsible use

Goal and impact

There are three algorithms used when assessing a valuation application. For the readability of this page, we refer to these algorithms as ''control algorithms''. The different control algorithms are explained below:

• Duplicate algorithm: this algorithm checks whether an application for depreciation has been submitted before. If an application has been submitted before, the application is automatically rejected.

• Postcode check algorithm: This algorithm checks whether the property's postcode falls within the depreciation area. This is the area in which properties may be located that have decreased in value due to gas extraction. If the property is not within the depreciation area, the application is automatically rejected.

• NAM algorithm: this algorithm checks whether compensation has been granted to a property by the Nederlandse Aardolie Maatschappij (NAM) in the past. If this is the case, a new application is rejected.

The impact of all algorithms is that an application is rejected if it does not meet the algorithm's conditions. The automatic rejection of an application is thus based on facts.

Considerations

The verification algorithms ensure that all applications for depreciation that should be considered can really be processed. The duplicate algorithm is necessary because the IMG has no authority under the law to consider a duplicate application. This is the case when a person has made a previous application for decrease in value at a particular property for the period he has been an owner, and it has been assessed.

In addition, the postcode algorithm is designed to ensure that only people who are entitled to do so can apply. The valuation area has been carefully created. Based on the earthquake history in the earthquake area, the area has been determined. This means that for certain postcode areas, it has been determined that the properties within these postcode areas are eligible for depreciation compensation. The postcode algorithm is relevant because it checks whether the property falls within the depreciation area.

The NAM algorithm is then relevant because it is clear from the law that the IMG may not process applications for which NAM has paid compensation in the past. This also applies to depreciation applications.

Human intervention

The control algorithms are not controlled by a human. The algorithms are based on facts. Inputting them will always lead to the same outcome ("postcode is or is not in the depreciation area"). Control by a human is therefore not necessary for the deployment of these algorithms.

Risk management

We evaluate the risks in accordance with our privacy policy. Based on this evaluation of, we take or adjust additional measures. The next update for the risks of this algorithm is scheduled for in Q4 2024.

Legal basis

Duplicate check and postcode check: Article 2(3)(a) under 2 Temporary Groningen Act: IMG's task and authority is to deal with damage and, to that end, to determine entitlement to compensation for damage.

NAM control: Article 2 paragraph 4 sub b Temporary Groningen Act: The IMG is not authorised to deal with a claim for compensation if it concerns damage for which a settlement agreement has been concluded by the operator with the victim or the victim's representative.

Links to legal bases

• Artikel 2 lid 4 Tijdelijke wet Groningen: https://wetten.overheid.nl/BWBR0043252/2023-07-01#Hoofdstuk2
• Artikel 2 lid 3 Tijdelijke wet Groningen: https://wetten.overheid.nl/BWBR0043252/2023-07-01#Hoofdstuk2

Link to Processing Index

avgregister.rijksweb.nl/AvgVerantwoordelijke/Verwerking/Get/8582

Elaboration on impact assessments

A DPIA has been carried out on the Valuation Drop Scheme.

No Fundamental Rights Impact Assessment has been carried out on the Valuation Drop Calculation Method because the Calculation Method is not a high-risk AI system. This is because the algorithm does not meet the definition of an AI system because the algorithm cannot be said to act independently.

Impact assessment

Data Protection Impact Assessment (DPIA)

Operations

Data

Postcode check: postcode of the property for which the application is submitted.

Duplicate check: postcode and house number of the property for which the application is submitted.

NAM check: name and date of sale of the applicant.

Technical design

Postcode algorithm: in the algorithm, the postcode list for the value reduction area is known. When a postcode is given as input, the algorithm indicates whether the postcode is on the postcode list for the value reduction area or not. If the postcode is not on the postcode list, the application is rejected.

Duplicate algorithm: the algorithm is trained with all applications for compensation due to decrease in value. When an application is given as input, the algorithm indicates whether the Institute has dealt with this application before or not. If the application has been dealt with before, the application is rejected.

NAM algorithm: the algorithm is trained with all compensations ever paid out by NAM. When an application is given as input, the algorithm indicates whether the property from this application is on NAM's compensation list or not. If the application appears on the compensation list, the application is rejected.