India may have to look abroad for N-cover
Domestic insurers have said they can insure only a fourth of the $320 million liability cover mandated by the government for nuclear plant operators.
By Mayur Shetty, TNN | Updated:
MUMBAI: Domestic insurers have said they can insure only a fourth of the $320 million liability cover mandated by the government for nuclear plant operators. This is compelling General Insurance Corporation to push for purchase of cover from international markets which will require opening up reactors to inspection.
The Nuclear Power Corporation is set to take a call on insuring its plants.
On Tuesday, the General Insurance Corporation of India which has been tasked with the responsibility of arranging the mandatory Rs 1,500 crore liability insurance cover for nuclear plant operators made a presentation to officials of Department of Atomic Energy, Nuclear Power Corporation, and Atomic Energy Regulatory Board. Also present were potential entrants into the nuclear power sector such as Larsen & Toubro, National Thermal Power Corporation and IndianOil Corporation.
GIC also brought in international nuclear underwriters and experts from China and Russia to highlight how these relatively closed countries were allowing their reactors to be inspected by global nuclear pool agencies. Representatives of specialist nuclear underwriters explained how pool inspections also benefit the plant operator. In the insurance world pool is the term used to denote the underwriting capacity created by a voluntary association of insurers to provide cover for an eventuality that cannot be insured by individual companies. Traditionally India has been averse to inspection of the 'hot' or critical area of nuclear plants where reactions take place.
"India is at an incipient stage of private participation in power. We had a meeting with local insurance companies to create a nuclear insurance pool. But we have managed to get commitments from only 7-8 insurers for capacity of $78million as against the target of $320million" said Yogesh Lohiya, chairman, GIC. He said that the corporation therefore decided to bring in experts international pools to explain how inspections are not a cause for concern.
The Nuclear Power Corporation is set to take a call on insuring its plants.
On Tuesday, the General Insurance Corporation of India which has been tasked with the responsibility of arranging the mandatory Rs 1,500 crore liability insurance cover for nuclear plant operators made a presentation to officials of Department of Atomic Energy, Nuclear Power Corporation, and Atomic Energy Regulatory Board. Also present were potential entrants into the nuclear power sector such as Larsen & Toubro, National Thermal Power Corporation and IndianOil Corporation.
GIC also brought in international nuclear underwriters and experts from China and Russia to highlight how these relatively closed countries were allowing their reactors to be inspected by global nuclear pool agencies. Representatives of specialist nuclear underwriters explained how pool inspections also benefit the plant operator. In the insurance world pool is the term used to denote the underwriting capacity created by a voluntary association of insurers to provide cover for an eventuality that cannot be insured by individual companies. Traditionally India has been averse to inspection of the 'hot' or critical area of nuclear plants where reactions take place.
"India is at an incipient stage of private participation in power. We had a meeting with local insurance companies to create a nuclear insurance pool. But we have managed to get commitments from only 7-8 insurers for capacity of $78million as against the target of $320million" said Yogesh Lohiya, chairman, GIC. He said that the corporation therefore decided to bring in experts international pools to explain how inspections are not a cause for concern.
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