The Government has created a nuclear insurance pool worth `1,500 crores with the support of Nuclear Risk Insurers (NRI), UK. Known as the Indian Nuclear Insurance Pool (INIP), this is the 27th of its kind in the world. It aims to cover risks faced by both suppliers and operators in India's expanding nuclear energy industry.
The INIP, mandated as per the Civil Liability of Nuclear Damage Act (2010), has been set up by General Insurance Corporation of India (GIC Re) and 11 other public and private non-life insurers, including United India Insurance and ICICI Lombard General Insurance.
The Chairman of the Department of Atomic Energy, Mr. R. K. Sinha, stated that two types of policies would be offered. These are - the Nuclear Operators Liability Insurance Policy and the Nuclear Suppliers' Special Contingency (against Right to Recourse) Insurance Policy.
The INIP currently covers third party liability risk only in the cold zone i.e. the area outside the reactor. It seeks to extend its cover to the hot zone or areas lying within the reactor in the near future.
The creation of this insurance pool is a major milestone in the Indian nuclear energy industry, which would help the Government to achieve its vision of tripling energy generation from nuclear sector in the next five years.