Nuclear Insurance

            Congress has established a system of “no-fault” insurance to provide liability coverage in the event of a major reactor accident. This insurance program, initiated under the Price-Anderson Act, combines commercial insurance and self-insurance by the nuclear industry. Large nuclear plants are required to have the maximum amount of liability insurance that is commercially available, currently $200 million. In addition, each licensed reactor is liable for a $75.5 million assessment to provide funds in the event of a major accident at a plant in the United States. (No reactor would be assessed more than $10 million in any one year.)

            With over 100 commercial nuclear power plants in the United States, the combination of commercial insurance and industry self insurance exceeds $8 billion. This is the total liability limit for an accident under the Price-Anderson Act and no claims are required to be paid in excess of this amount. Congress, however, will consider the need for providing an additional source of funds should $8 billion prove inadequate.

            The Price-Anderson Act provides for liability insurance coverage for actual damages incurred by anyone affected by a major reactor accident. Besides the coverage for offsite public liability claims, the NRC requires that utilities maintain $1 billion in onsite property damage insurance to provide funds to deal with cleanup of the reactor site after an accident.

Reference :

U.S. Nuclear Regulatory Commission from website http: /www.n / rc.gov/