India’s first Nuclear Suppliers’ Insurance Policy unveiled by INIP
The India Nuclear Insurance Pool (INIP) has become the 27th such insurance pool in the world as countries such as France, Russia, South Africa and the U.S. have put in place such similar risk transfer mechanisms.
The India Nuclear Insurance Pool (INIP) on 12 August 2016 unveiled India’s first Nuclear Suppliers’ Insurance Policy.
New India Assurance Company Limited and INIP will issue the policy and administer the claims on behalf of the pool.
The INIP has become the 27th such insurance pool in the world as countries such as France, Russia, South Africa and the U.S. have put in place such similar risk transfer mechanisms.
Features of India Nuclear Insurance Pool (INIP)
• It will cover the risks of liability of nuclear operators and suppliers under Section 6(2) and Section 17 of the Civil Liability for Nuclear Damages (CLND) Act, 2010 respectively.
• It provides three types of policies viz., tier 1 policy for operators, tier 2 policy for turn key suppliers and tier 3 policy for suppliers other than turn key suppliers.
• The pricing of premiums will depend on factors such as risk probability, possible severity of damage and exposure to people and property around nuclear installations.
• It will be administered by the General Insurance Corporation of India (GIC Re), the sole reinsurance company in the Indian insurance market.
• Out of the total fund amount of 1500 crore rupees the GIC Re and other four Public Sector Undertakings (PSUs) including New India, Oriental Insurance, National Insurance and United India Insurance invested 750 crore rupees. The British Nuclear Insurance Pool has also invested 500 crore rupees in the pool.
• The amount is in accordance with the act that prescribes that the operator’s maximum liability shall be 1500 crore rupees.
• It will provide insurance cover for both hot zones (radiation and nuclear reactors) and cold zones (outside the reactor areas).
• At present, nuclear plants in India only have insurance cover for zones that are outside the area of radiation and reactors.
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