Nuclear plants insurence
India’s first insurance policy covering public liability to an
atomic power plant operator has been issued to Nuclear Power Corporation of
India Ltd (NPCIL).
Details:
- The insurance policy was issued by the country’s largest non-life insurer New India Assurance Company Ltd.
- NPCIL got the insurance policy covering all its atomic power plants. The total premium came around Rs. 100 crore for a risk cover of Rs. 1,500 crore.
- The policy complies with all the provisions of the Civil Liability for Nuclear Damage Act.
- The policy would cover the liability towards public as a consequence of any nuclear accident in the plants covered under the policy and also the right of recourse of NPCIL against equipment suppliers.
- However, the reinstatement premium would be decided post a claim based on the capacity — to underwrite the risk-available with the insurers. Reinstatment clause in an insurance policy enables a policyholder to extend the insurance cover to the original limit on payment of premium post a claim.
- The policy does not have any ‘policy excess’ — part of the claim a policyholder has to bear himself.
Background:
The Central government had announced in June 2015 the setting up
of the Rs. 1,500-crore India Nuclear Insurance Pool to be managed by national
reinsurer GIC Re.
- The GIC Re, four government-owned general insurers and also some private general insurers have provided the capacity to insure the risks of up to Rs 1,000 crore with the balance Rs 500 crore being obtained from the British Nuclear Insurance Pool.
- The insurance pool was formed as a risk transfer mode for the suppliers and also NPCIL.
