Insurance cover for nuclear accidents likely

New Delhi, Jan 12 (PTI) Insurance regulator IRDA is inthe early stages of drafting a regulation for covering nuclearaccidents.

The move assumes significance as India is expected to bea major player in this sector after its nuclear deal with USis operationalised.

"We are in early stages (of the regulation). This thinginvolves large amount of risks. We will have to firstconstitute a pool which will be a member of the larger globalpool (of nuclear accident insurance). That is yet to befigured out," Irda Chairman J Hari Narayan said.

Speaking to reporters on the sidelines of the IBAI summithere, he also said that the reinsurer General InsuranceCorporation (GIC) is working on the details to provideinsurance protection to such accidents.

It is felt that the ambitious programme expected underthe Indo-US nuclear deal may not materialise to the desiredextent unless there is insurance protection for nuclearaccidents.

According to US-India Business Council (USIBC) theIndo-US nuclear deal could open up investment opportunities tothe tune of USD 500 billion over the next decade.

As of now, nuclear power accounts for just three per centshare of the total power produced in India from differentsources. However, by 2020 this source is expected to provide20,000 MW of power against little over 4,000 MW currently. PTIJD RMI