Nuclear Insurance Pool: Implications
Nuclear Insurance Pool: Implications
Question: India has launched an insurance pool worth INR 1500 crore mandatory under the CLND/Civil Liability for Nuclear Damage Act. Discuss the implications of this move.
• Government has launched an insurance pool worth INR 1500 crore under the Civil Liability for Nuclear Damage Act
• The setting up of the pool provides fresh impetus for numerous projects such as the Gorakhpur Haryana Anu Vidyut Pariyojna (GHAVP)
• Clauses within the CLND Act give the Right to Recourse to operators and allow them to sue suppliers in the event of any accident which is an impediment to nuclear industry growth
• Insurance pool is a solution for supplier’s concern about liability from nuclear risks
• As per the INR 1500 crore pool set up by GIC/ General Insurance Corporation of India and 11 other non life insurers, policies on offer will be a nuclear operators liability insurance policy and nuclear suppliers special contingency against right to recourse insurance policy
• Other non life insurers which have formed the nuclear insurance pool include United India, National Insurance, Oriental Insurance and New India from the public sector
• Private insurance companies are also involved in the establishment of the nuclear pool
• This move also allays fears for foreign players
• This move also brings N. Indian states into the fold of the nuclear industry and give the atomic energy programme an all India image
• The pool will also help in attaining the vision of triple energy generation from the nuclear sector within the next 5 years
Facts and Stats
• The Gorakhpur Haryana Reactor is slated for launch in 2022 or 2023
• Despite foreign contribution, there will be no foreign inspector inspecting the plants
• GIC Re is contributing INR 300 crore, and the remaining INR 150 crore is being contributed by 7 private players
• Shortfall of INR 600 crore was met when domestic insurance company added INR 100 crore and remaining gap was filled by British Nuclear Insurance Pool
