India Sets up Nuclear Insurance Pool

The government of India has finally launched a nuclear insurance pool to the tune of Rs. 1500 crore which is a mandatory requirement under the Civil Liability for Nuclear Damage Act (CLND)-2010.

Liability to mitigate nuclear risk was the biggest concern of the suppliers. In the absence of the nuclear insurance pool, several projects such as – Gorakhpur Haryana Anu Vidyut Pariyojna (GHAVP) are held up. It would help increasing country’s nuclear energy capability by 300 per cent in the next five years, a target set by the prime minister.

The much needed nuclear insurance pool was launched by Mr. Jitendra Singh, minister of State, Department of Atomic Energy in New Delhi last week. Speaking on the occasion, Mr. Singh gave credit to Prime Minister Narendra Modi’s recent visit to Canada for accomplishing the deal to obtain 3000 tons of uranium over the next five years.

There are clauses in the Civil Liability for Nuclear Damage Act -2010 that give operator the Right to Recourse and allow it to ask suppliers for compensation in case of any mishap. These were the roadblocks to the growth of the nuclear industry in the country. It was an important component of a nuclear liability regime, encompassing a market based and risk informed insurance scheme based on the best of international practices.

These concerns led to the formation of the nuclear insurance pool in India.

Mr. Singh nullified the researchers apprehensions that nuclear energy is unsafe and costly. “There has not been a single incident of cancer death of a nuclear scientist in our plants, which is proof enough of their safety”, he said.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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