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) but the reinstat-ement of insurance value post a claim will be decided later, industry officials said.
“We recently got the insurance policy covering all our atomic power plants. The total premium came around Rs. 100 crore for a risk cover of Rs. 1,500 crore,” S.K. Sharma, Chairman and Managing Director, NPCIL, said.
The policy complies with all the provisions of the Civil Liability for Nuclear Damage Act (CLND), said a known insurance industry official.
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 insurance policy was issued by the country’s largest non-life insurer New India Assurance Company Ltd.
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. The insurance coverage will be for all the NPCIL’s plants— like a floater cover.
Queried about the reinstatement premium, the official said it would be decided post a claim based on the capacity — to underwrite the risk — available with the insurers.
