Lok Sabha Question No. 995 (UNSTARRED), answered on 2023-07-26
Subject: Insurance Coverage for Nuclear Disasters
Ministry: ATOMIC ENERGY
Asked by: A. Chellakumar

## GOVERNMENT OF INDIA DEPARTMENT OF ATOMIC ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 995

TO BE ANSWERED ON 26.07.2023

## Insurance Coverage for Nuclear Disasters

995.   DR. A. CHELLAKUMAR:

Will the PRIME MINISTER be pleased to state:

- (a) whether  there  is  adequate  and  sufficient  insurance  coverage  offered  for nuclear incidents in the country and if so, the details thereof along with the measures  taken  by  the  Government  to  ensure  the  availability  of  insurance coverage for potential damages arising from a nuclear disaster; and
- (b) the  details  of  initiatives  or  collaborations  undertaken  by  the  Government  to enhance the insurance framework for nuclear disasters and attract participation from insurers?

## ANSWER

THE  MINISTER  OF  STATE  FOR  PERSONNEL,  PUBLIC  GRIEVANCES  AND PENSIONS AND PRIME MINISTER'S OFFICE (DR. JITENDRA SINGH):

- (a) Yes,  Sir.  India  has  enacted  Civil  Liability  for  Nuclear  Damage  (CLND)  Act 2010 to provide for civil liability for nuclear damage and prompt compensation to  the victims of a  nuclear  incident  through  a  no-fault  liability  regime channeling  liability  to  the  operator.  Under  the  Act,  the  operator  has  to maintain  insurance  or  financial  securities  or  a  combination  of  both,  for covering his liability in respect of the nuclear incident. The Act also limits the liability of the nuclear operator for each nuclear incident.

Without  any  Insurance  or  financial  securities,  the  nuclear  operator  cannot operate the nuclear facilities, and the operator is also mandated to renew the insurance policy or financial securities from time to time, before the expiry of the period of validity.

The liability of an operator for each nuclear incident is-

- (i)   in respect of nuclear reactors having thermal power equal to or above ten MW, rupees one thousand five hundred crores;
- (ii)   in respect of spent fuel reprocessing plants, rupees three hundred crores;
- (iii)   in respect of the research reactors having thermal power below ten MW, fuel  cycle  facilities  other  than  spent  fuel  reprocessing  plants,  and transportation of nuclear materials, rupees one hundred crores.

India Nuclear Insurance Pool (INIP) was set up with GIC-re, and several other Indian insurance companies with a capacity of 1500 Crore on 12th June, 2015 to provide insurance to cover the liability as prescribed under CLND act, 2010. In  addition  to  providing  coverage  for  operators'  liability,  the  INIP  will  also address  liability-related  concerns  of  suppliers  (Both  Domestic  and  Foreign). GIC-Re  along  with  Several  other  Indian  insurance  companies  are  currently the participants in the insurance pool.

- (b)      Under the CLND Act 2010, the Central Government may review the amount of the operator's liability from time to time and may specify, by notification, a higher amount for compensation, if deemed necessary.

India has also ratified Convention for Supplementary Compensation (CSC) in 2016. CSC offers a two-tier system w.r.t the amount of compensation, e.g., Installation state to ensure availability of the amount of compensation at least three  hundred  million  SDR,  and  international  fund  for  which  all  contracting parties obliged to contribute the amount based on a formula for calculation of contribution. It aims at increasing the amount of compensation available in the event of a nuclear incident through public funds to be made available by the Contracting  Parties  on  the  basis  of  their  installed  nuclear  capacity  and  UN rate of assessment.

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