General Insurance Corporation of India (GIC Re) proposes to issue Nuclear Safety Bonds to garner part of insurance capacity required for proposed Indian Nuclear Insurance Pool. GIC Re has floated Expression of Interest (EOI) to engage professional institutions to work out end to end solutions for issuance of Nuclear Safety Bonds.
Nuclear risks/perils connected with Hot Zone properties and associated third Party liabilities are not covered in conventional insurance policies. Since nuclear risks are of low frequency but of high severity nature, worldwide such risks are covered by pooling arrangements.
The proposed Indian Nuclear Insurance Pool is such a risk transfer mechanism. An in-principle approval has been received from Insurance Regulatory and Development Authority of India (IRDAI) for the formation of the Indian Nuclear Insurance Pool (INIP).
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
Nuclear risks/perils connected with Hot Zone properties and associated third Party liabilities are not covered in conventional insurance policies. Since nuclear risks are of low frequency but of high severity nature, worldwide such risks are covered by pooling arrangements.
The proposed Indian Nuclear Insurance Pool is such a risk transfer mechanism. An in-principle approval has been received from Insurance Regulatory and Development Authority of India (IRDAI) for the formation of the Indian Nuclear Insurance Pool (INIP).
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
