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NPCIL to get nuclear liability policy soon

Once the policy is received, then the company can go ahead in full steam to start its project in Haryana

Policy Pulse
Publish Date: Apr 18 2016 3:51PM | Updated Date: Apr 18 2016 4:46PM

NPCIL to get nuclear liability policy soon

India's atomic power company, Nuclear Power Corporation of India Ltd (NPCIL) is confident of getting the public liability insurance policy in two weeks period, said a senior official. 

 

Once the policy is received, then the company can go ahead in full steam to start its project in Haryana, said the official, said an official on the condition of anonymity. 

 

He categorically said the policy would be on reinstatement basis - that is the coverage will be reinstated to the original level on payment of same premium after a claimable nuclear accident. 

 

While the official declined to comment on the premium to be paid to get the policy to cover public liability up to Rs1,500 crore per year, per accident industry sources had earlier told IANS that it will be around Rs 70 crore. 

 

The proposed policy would cover the liability towards public as a consequence of any nuclear accident in the plants covered under the policy and also the right of recourse of NPCIL against equipment suppliers. 

 

The insurance coverage will be for all the NPCIL's plants - like a floater cover. 

 

When a nuclear accident happens and the Rs 1,500 crore cover is exhausted, then there will not be any insurance cover for subsequent accidents that might occur during that policy year. 

 

According to the NPCIL official if such a situation occurs, then the policy coverage will get automatically reinstated to Rs 1,500 crore on payment of premium. 

 

"The policy complies with all the provisions of the Civil Liability for Nuclear Damage Act (CLND) giving the necessary comfort to the suppliers," he said, adding that the premium will be paid to the insurers soon as the terms and conditions have now been finalised.