Indian Nuclear Insurance Pool (INIP)

Union Government has launched an Indian Nuclear Insurance Pool (INIP)
of 1,500 crore rupees as per the mandatory provision under the Civil
Liability for Nuclear Damage Act (CLND), 2010. It was announced by
Minister of State (MoS) in the Department of Atomic Energy Jitendra
Singh in New Delhi.

With this launch, INIP became 27th nuclear insurance pool in the world
that managing nuclear liabilities and India has joined an exclusive
list of countries having nuclear pools.

The pool will address third party liability insurance in a bid to
offset financial burden of foreign nuclear suppliers under the CLNDA,
2010.

The pool is set up by General Insurance Corporation (GIC) of India and
11 other non-life insurers. They are New India, Oriental Insurance,
National Insurance and United India Insurance from the public sector
apart from private insurance companies.

Why the INIP is formed?

**A clause in the CLND Act empowers the operator the Right to Recourse
and allows it to sue the suppliers in case of any accident. This was
seen as a major hindrance to the growth of the nuclear industry. These
concerns led to the formation of the nuclear insurance pool.

Implications of INIP

**To deal with management of cover to both operators and suppliers on
behalf of all direct insurance companies participating in the pool.

**INIP will offer policies on the nuclear operators liability
insurance policy and a nuclear suppliers' special contingency (against
right to recourse) insurance policy.

**Address third-party liability insurance and later expand into
property and other hot zone i.e. inside reactor areas risk. It should
be noted that at present it only covers cold zones (outside reactor
areas).

**Provide the risk transfer mechanism to the operators and suppliers
to meet their obligations under the CLND Act.

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