A government-owned insurance company has begun doing the spadework on formulating a cover package for the nuclear industry that may help address the concerns of suppliers and operators over India’s 2010 law on liability.
Government sources said the public sector General Insurance Corporation is working on a proposal to provide insurance cover to the nuclear industry. Part of the process involves drawing up premium rates for specific parts of a power reactor so that the actuarial burden of any direct or indirect liability in the event of an accident can be quantified in advance and factored into any price negotiations between the Nuclear Power Corporation of India Ltd. and its Russian, U.S. and French suppliers.
Indian officials hope that GIC’s efforts will help Prime Minister Manmohan Singh — who begins a five-day visit to Moscow and Beijing on October 20 — allay Russian concerns at the impact the Civil Liabilities For Nuclear Damage Act will have on its planned supply of two additional nuclear reactors at Kudankulam in Tamil Nadu.
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