Nuclear insurance pool attracts international interest

Several overseas nuclear energy companies reportedly eyeing taking out cover from twelve-member pool

Nuclear insurance pool attracts international interest

Insurance News

By Gabriel Olano

The nuclear risk insurance pool set up in India is reportedly attracting interest from international nuclear energy suppliers.

The capacity pool, which is worth INR15 billion (US$232.76 million) has eleven general insurers and government-owned General Insurance Corporation of India (GIC Re) as participants.

Global energy giants GE and Westinghouse are among the suppliers interested in availing of cover from the pool, reports Indian financial portal Moneycontrol.

The pool, launched in June 2015, was formed to provide liability insurance from risks due to nuclear power plants. An earlier proposal to form the pool was struck down due to differences among stakeholders on several clauses. In 2010, the Indian Parliament legislated the Civil Liability of Nuclear Damage (CLND) Act. This put in place a liability cap for nuclear plant operators for economic damage in the event of an accident.

According to Alice Vaidyan, chairman and managing director of GIC Re, the Nuclear Power Corporation of India (NPCIL) has already availed cover from the pool. This is significant, said Vaidyan, as Indian laws forbid inspection of nuclear reactors by foreign reinsurers. Most, if not all, reinsurers would insist on conducting an inspection before providing reinsurance capacity.

Aside from GIC Re, the following insurers are part of the pool: public sector insurers New India, Oriental Insurance, National Insurance, and United India Insurance; and private sector firms ICICI Lombard General Insurance, Tata AIG General, Reliance General Insurance, Chola MS General Insurance, IFFCO Tokio General Insurance, SBI General, and Universal Sompo General.

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