Background

• Following the enactment of the Civil Liability for Nuclear Damage Act, 2010 (CLND Act), GIC Re, as India’s national reinsurer, initiated the formation of the India Nuclear Insurance Pool (INIP) in collaboration with domestic non-life insurance companies.
• The Pool was created to address the limited availability of international insurance capacity for nuclear liability risks and to provide a viable domestic insurance solution in India.
• The INIP was launched on 12 June 2015 and currently provides a total capacity of INR 1,500 crore, contributed by GIC Re and 11 Indian non-life insurers, to support India’s civil nuclear program.

Coverage and Risk Transfer Mechanism

INIP enables insurance coverage with respect to Nuclear Risk Third Party Liability in terms of the following aspects:

• Insurance Coverage for Nuclear Operators for statutory liabilities under the CLND Act, 2010 (Sections 6 and 8).
• Insurance Coverage for Nuclear Suppliers for liability arising from the Operator’s right of recourse under Section 17 of the Act.