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India’s nuclear insurance policy aims to transfer liability risk from nuclear suppliers

insuranceIndia’s first insurance cover to NPCIL aims to transfer liability risk from nuclear suppliers, International Business Times (IBT) July 3, 2016  By   National Power Corporation of India Ltd (NPCIL), the government-owned nuclear power generation company, received India’s first insurance policy that may offset liability risks seen as a bottleneck by foreign nuclear plant suppliers, reported IANS.

The policy — issued by government-owned non-life insurer New India Assurance Company Ltd — is compliant with the guidelines specified in the much discussed Civil Liability for Nuclear Damage Act, 2010, an insurance official said……

The policy, according to the report, will be applicable to all the plants of NPCIL. It covers their liability to the public in the event of accidents specified in the policy and the power plant’s “right of recourse against the equipment suppliers.”

The reinstatement premium will be decided after a claim is filed based on the insurer’s capacity to undertake further risks, said the official……He also added that the policy is devoid of ‘policy excess’, defined as the first amount uncovered by the policy and hence liable to be paid by the company……

The announcement comes after NPCIL paid Rs. 50,000 to each of the six workers who suffered burn injuries at the Kudankulam nuclear plant in May 2014 on successful intervention by National Human Rights Commission, as reported by the Indian Express.

NPCIL is currently mired in allegations of misleading people about the safety of the Kovvada plant in Andhra Pradesh.

Earlier, General Electric chairman Jeffrey Immelt also expressed reservations on building a nuclear plant in India, citing the liability law.

July 4, 2016 - Posted by | business and costs, India, politics

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