Question : Insurance Pool for NPP

(a)whether lack of clarity on the insurance pool had kept away the suppliers both internal as well as external from Indian nuclear power (NPP) sector thereby hampered the commencement of new projects which is crucial for power sector;

(b)if so, whether the Government has formulated insurance pool to be set up to cover nuclear liability due to stringent provisions of the Civil Liability for Nuclear Damage Act and if so, the details thereof;

(c)the amount and details of the said pool and the name of insurance companies both private and public;

(d)whether re-insurance will also be taken in this regard; and if so, the details thereof; and

(e)whether the defective parts or projects supplied by the manufacturers during the guarantee period will also be covered under the insurance pool and if so, the details thereof and if not, the reasons therefor?

Answer given by the minister

THE MINISTER OF STATE FOR PERSONNEL, PUBLIC GRIEVANCES & PENSIONS AND PRIME MINISTER’S OFFICE (Dr. JITENDRA SINGH):

(a)&(b)No, Sir. M/s General Insurance Corporation of India (GIC-Re), along with several other Indian Insurance Companies, have launched the India Nuclear Insurance Pool (INIP) with a capacity of Rs.1500 crore on 12th June, 2015, basically to provide insurance to cover the liability as prescribed under Civil Liability for Nuclear Damage (CLND) Act 2010. In addition to providing coverage for operator’s liability, the INIP will also address liability related concerns of suppliers under the CLND Act 2010 and will pave the way for participation of Indian as well as foreign suppliers for the growth of the Indian Nuclear Power Programme.

(c)The entire amount of Rs.1500 crore for the India Nuclear Insurance Pool has been collated by GIC-Re from Indian Insurance Companies viz. New India Assurance Company Ltd., United India Insurance Company, Oriental Insurance Company Ltd., ICICI Lombard General Insurance Company, National Insurance Corporation India, Reliance General Insurance Company Ltd., Tata AIG General Insurance Company Ltd., IFFCO Tokio General Insurance Company Ltd., Cholamandalam General Insurance Company Ltd., SBI General Insurance Company Ltd. and Universal Sompo General Insurance Company.

(d)No re-insurance is proposed by GIC-Re currently.

(e)The modalities of specific Insurance product will be finalised by GIC-Re in consultation with all the stake holders.

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