Page 35 - The Insurance Times September 2022

Reinsurance support
The reinsurance support had come
from Nuclear Risk Insurer from London.
Going forward, GIC Re as the pool
manager will strive to ensure that this
pool develops into a one-stop facility for
covering all nuclear risks. This pool
provides the risk transfer mechanism to
the operators and suppliers to meet
their obligations under the CLND Act.
At a later stage, this pool also looks to
provide reinsurance support to other
such international pools. Insurance
through the pool is a solution for
suppliers' concerns about liability from
nuclear risks. GIC Re, India's national
reinsurer, is in charge of a US$222m
nuclear insurance pool, which is an
arrangement to cover exposures of
nuclear power operators and suppliers.
Parts of the pool are 11 other domestic
insurers, which cover civil liability risks
in accordance to the Nuclear Damage
Act 2010.

The India Nuclear Insurance Pool (INIP)
unveiled the Nuclear Supplier's
India Nuclear Insurance Pool. It will have a capacity of Rs 1,500 crore. It was
Insurance Policy for Right to Recourse
formed as a risk transfer mechanism to cover/transfer the risks of operators' and
(Under CLND Act 2010). This Right to
suppliers' liability under the CLND Act (Section 6(2) and Section 17, respectively)
Recourse Policy works back to back
to INIP.
with the 'Nuclear Operator's Liability
(CLND ACT 2010) Insurance Policy'
New India Assurance issue the policy and deal with management of cover to the
which was issued to Nuclear Power
operators and suppliers, on behalf of all direct insurance companies participating
Corporation of India Limited (NPCIL) on
in the pool. Apart from GIC Re, New India, Oriental Insurance, National Insurance
26th of May 2016. The Supplier's Policy
and United India Insurance from the public sector, the private ones are ICICI
was unveiled by Chairman, Atomic
Lombard General Insurance, Tata AIG General, Reliance General Insurance, Chola
Energy Commission at Mumbai on the
MS General Insurance, IFFCO Tokio General Insurance, SBI General and Universal
12th of August 2016. The New India
Sompo General. The policies offered will be a nuclear operators liability insurance
Assurance Company Limited, one of the
policy and a nuclear suppliers' special contingency (against right to recourse)
major capacities providing non-life
insurance policy. This pool is the 27th such market pool globally.
insurance company for the INIP has
volunteered to issue the policy and
It addresses third-party liability insurance to begin with and later expand into
administer the claims, as and when
property and other hot zone (inside reactor areas) risk. This covers both operators
notified, on behalf of the Pool. INIP, the
and suppliers. At present, only cold zones (outside reactor areas) are covered.
27th Global Nuclear Insurance Pool,
The country had achieved another milestone in the nuclear energy industry
was launched on 12th June, 2015 by
by setting up this pool. The CLND Act also provides for state-run Nuclear
General Insurance Corporation of India
Power Corporation of India, which operates all atomic power plants in India,
(GIC Re), the National Reinsurer of
to seek compensation from suppliers in an accident due to faulty equipment.
India. The INIP has been formed by
The CLND Act provides for Rs 1,500 crore as maximum liability for nuclear
collating capacities from member
damage.
The Insurance Times, September 2022 35