Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-15
Acc Sees U. 5.
AS A-|nsurer
Asks Loss Coveruqe
Over $65 Million

Inc ATOMIC Energy commas
sion urged Congress today to
speed progress in the nuclear
power development field by
authorizing the Government to
supplement commercial coverage
against atomic hazards in plants.
Commission Chairman Lewis
IL. Strauss recommended to the
Joint Congressional Committee
on Atomic Energy that the Gov
eminent cover such losses ex-
ceeding SOS million per plant for
Injury or damage resulting from
catastrophe accidents.
The sos million figure, Ad-
miral Strauss explained at a
committee hearing. is the total
which private stock company and
mutual insurance firms have said
they would be able to offer in
public liability coverage per
plant. This is about four times
as much as any public liability
policy ever previously made
available for any single American
industrial plant. he added.
Chairman First Witness
The Acc chairman was the
first witness at the opening OF
committee hearings on the ques-
ton of providing Government in
demnity against nuclear power
plant hazards. Other scheduled
witnesses included other mem
bers and officials of the Acc.
1.-THE lack of protection against
possible liability in excess of the
available commercial insurance
constitutes a major deterrent tc
the development Of nuclear pow
er by private industry" Mr..
Strauss said.
"A number of atomic power
projects have reached the point
where very substantial commit
mentS must be made soon il
they are to proceed according
Ito schedule. The commission
therefore urges that legislation
be enacted at the session of Con.
gress to provide this protection.
Committee Chairman Ander'
son, Democratic Senator from
New Mexico, as well as MIR
Strauss emphasized that the pos
sibility of catastrophe accident'
was very remote" Mr.. StrauS.
added, however that there il
always an element of danger
especially because there is NJ
experience in operation of full
scale power reactors of the type
planned and much development
work remains to be DONE"
Would Authorize Pacts
Harold L. Price, director o
the Acc Division Of Civihai
Application, told the committee
that the proposed Legislation
would:
/ /. Authorize the commission Il
tissue indemnity agreements d.
ffectly to holders of construction
permits : ID to licensees and theil
supple s or, as an alternative
to iss e reinsurance agreement
to tn insurance companies.
! 2. n ave such protection appl!
only to losses in excess o
amot is Of liability insurance
avail Ole commercially. NJ
/ 3. use this protection charg,
on a shedule of charges (which
will ear discrimination.
relat Jnship to the premium
charged by the insurance in
dustry for primary non-govern
mental insurance.
The Acc plan ran into som'
criticism by two Democratic
Senators on the committee anS
also confiicted to some extern
|. with Chairman Anderson's views
, The New Mexico Senator pro
posed that the Government
liability be limited to $500 mil
lion. He also felt that smalle
| plants as we'll as colleges will
Inuclear development facilitie
might find the program prohibi
: tive if they had to buy up Il
: $65 million in insurance before
) being entitled to Government in
/ demnity payments.
| Democratic Senator's Gore o
/ Tennessee and jackson Of Wash
ington said they we're somewha
{ disturbed because the commits
: sion's plan lacked definite guide
: lines and reasonably concrete in
I formation on such things a
rates.