Reinsurance pool for nuclear plants

The construction of the new Koodankulam nuclear power plant (extreme south) has reminded the State that reinsurance coverage was necessary. According to Indian law no insurer can alone take the third party liability of a nuclear risk. An insurance pool has already been claimed by the department of atomic energy as the national reinsurer GIC was unable to gather sufficient capacity to cover the whole fleet of nuclear plants.

Indian laws require nuclear plants to hold coverage of 320 million USD. GIC, along with local insurers, managed to gather just a capacity of 78 million USD within an insurance pool for existing and future risks. Indian reinsurer was looking for the additional 242 million USD from foreign pools. The government announced that as last resort, it would act as an insurer, contributing with up to 300 million USD.