GIC held consultations on the creation of Nuclear Insurance Pool (NIP)
It is intended to cover the liability of Nuclear Plant operators and Equipment and Material Suppliers under Civil Liability for Nuclear Damages (CLND) Act, 2010 in case of nuclear accidents.
Nuclear Insurance Pool: A common insurance pool to pay for nuclear damages under the CLND Act, 2010
The term Nuclear Insurance Pool (NIP) was in news in April and May 2015 as the General Insurance Corporation of India (GIC) was collecting views from the stakeholders in the Insurance industry and Nuclear Energy sector about the creation of the NIP.
The NIP is intended to cover the liability of Nuclear Plant operators and Equipment and Material Suppliers under Civil Liability for Nuclear Damages (CLND) Act, 2010 in case of nuclear accidents.
The creation of the Pool has become necessary due to the reluctance of the foreign nuclear equipment suppliers to participate in the nuclear trade with India as the CNLD Act, 2010 has imposed liability on them in case of nuclear accidents.
The GIC is given the responsibility by the Union Government for the creation of the NIP and it will be of 1500 crore rupees and the GIC will invest 750 crore rupees in it.
At present, nuclear plants in India only have insurance cover for zones that are outside the area of radiation and reactors. However, the NIP will provide insurance cover for both hot zones (radiation and nuclear reactors) and cold zones (outside the reactor areas).
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