Union Government announces Rs 1500 crore Indian Nuclear Insurance Pool [ Current Affairs ]
Jitendra Singh who Minister of State (MoS) in the Department of Atomic Energy 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 in New Delhi.
- At now, 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.
- INIP is set up by General Insurance Corporation (GIC) of India and 11 other non-life insurers such as New India, Oriental Insurance, National Insurance and United India Insurance from the public sector apart from private insurance companies.
- The pool will address third party liability insurance in a bid to offset financial burden of foreign nuclear suppliers under the CLNDA, 2010.
- INIP is 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.
- INIP is 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 insurance policy.
- Published on: June 23, 2015