Japan's disaster draws attention to little-known U.S. nuclear insurance plan
A little-known insurance pool in the United States that would provide insurance coverage for victims of nuclear reactor accidents occurring in the United States; the pool has been around for decades; Created under the Price-Anderson Nuclear Industries Indemnity Act of 1957 (Price-Anderson), the pool provides general liability insurance
The repercussions of Japan’s struggle with its nuclear plant disasters are rippling out in many ways on this side of the Pacific Ocean, including revelations about a little-known insurance pool in the United States that would provide insurance coverage for victims of nuclear reactor accidents occurring in the United States.
Insurancenewsnet reports that the pool has been around for decades but it is getting renewed attention in the wake of the nuclear reactor damage following Japan’s powerful earthquake and tsunami on 11 March. Created under the Price-Anderson Nuclear Industries Indemnity Act of 1957 (Price-Anderson), the pool provides general liability insurance. This insurance will compensate victims who suffer bodily injury, sickness, disease, or death due to a U.S. nuclear reactor accident. It also covers incident-related property damage and loss as well as reasonable living expenses for those who are evacuated.
Because claims resulting from nuclear accidents are covered under Price-Anderson, “all property and liability insurance policies issued in the U.S. exclude nuclear accidents,” according to the Nuclear Regulatory Commission (NRC) Web site.
The pool’s coverage applies not only to claims by local residents but also to transients if they have proof of damage or harm, says Bryant Kinney, spokesman for the Nuclear Energy Institute (NEI), Washington, D.C.-based NEI is a policy organization in the nuclear energy and technologies industry.
The liability coverage created under Price-Anderson “applies only to claims made for bodily injury or property damage caused during the policy period, and only if such claims are brought within 10 years of policy termination,” according to ANI.
Disaster relief would also be available through state and local governments under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, NRC says. This would happen if the president declares a nuclear accident to be an emergency or major disaster. The Energy Policy Act of 2005 extended the Price-Anderson Act to Dec. 31, 2025.
