Moscow: The final resolution of the vexed issue of India`s nuclear liability law applying on the Kudankulam units 3 and 4 in Tamil Nadu state hinges on the reinsurance of the risk, according to the Russian builders of the Kudankulam Nuclear Power Project.
"The nuclear liability issue can only be resolved by an insurance pool that would provide reinsurance for the risk", V.I Limarenko, director NIAEP-ASE, the construction arm of Rosatom, Russia`s nuclear energy corporation that is building KNPP, told media persons on the sidelines of Atom-expo 2014 international nuclear energy conference here.
"No one company can assume such huge liability", Limarenko added.
India`s Department of Atomic Energy has asked the finance ministry to form a nuclear insurance pool after the General Insurance Company was unable to insure nuclear power plants. The insurance pool for nuclear plants proposed by state-run re insurer GIC Re has not taken off as the government and its agencies,and international re insurers are unable to arrive at a consensus on inspection of the facilities.
Earlier, GIC Re had mobilised support of almost $78 million from local general insurers for the proposed nuclear insurance pool,which will provide cover to the existing as well as new nuclear installations in the country.
While the Nuclear Civil Liability Act provides for a cover of $320 million for operator liability for each event and each plant, GIC Re was seeking the cover for the remaining around $242 million of the amount from overseas nuclear pools.
The government has accepted the responsibility of acting as insurer of last resort for up to $300 million.
The proposed pool will cover material damage and the civil liability arising out of any harm to the hot and cold zones of nuclear plants.