Govt to form nuclear insurance pool to address liability issue

Moving to address the liability issue that has held up deals with various countries, the government has decided to form a Nuclear Insurance Pool which will have a number of stakeholders to meet the requirement of huge financial cover in case of a mishap.

 

The Department of Atomic Energy (DAE) is pursuing the matter with the Ministry of Finance for creation of the pool after no single insurance company, including the General Insurance Company, expressed its ability to provide financial cover to the nuclear plants considering the huge monetary requirement.

 

Under the Liability Law, compensation of upto Rs 1500 crore will have to be paid in case of a mishap involving a nuclear plant. At present, India has 20 nuclear plants and their number is expected to grow as the industry expands.

 

The move indicates the urgency to insure reactors, especially units 3 and 4 of the Kudankulam Nuclear Power Plant (KKNPP), under the Civil Liability Nuclear Damage Act (CLND), 2010.