Nuclear insurance

Like any industrial company, a nuclear installation can protect itself against the expenses caused by a possible accident, by underwriting one or more insurances. The categories of risks that can be covered are the same as in a traditional industry, provided that account is taken of the fact that the costs of nuclear decontamination can assume considerable proportions. Consequently, we will not address in what follows the coverage of the risks of Workmen's Compensation, Material Damage, Machinery Breakdown, Consequential Loss and others, coverage that is generally provided by traditional policies, adapted to the circumstances.

However, the third party liability regime of a nuclear operator is particular and governed by both international conventions and specific laws of each country.

In Belgium the third party liability of an operator is defined by :

  1. The Paris Convention of 29th July 1960.
  2. The law of 22nd July 1985 on third party liability in the field of nuclear energy.

The Paris Convention (P.C.)

The Paris Convention, adopted on 29th July 1960 under the patronage of the OECD, was the first international Convention that established the fundamental principles concerning the special regulations of third party liability and compensation in case of a nuclear accident. These principles are the following :

  • The objective liability (without being necessary to prove any fault) and the exclusive liability (channeling) of the operator of the nuclear installation in which the accident has occurred; this same principle is applicable to the transport of nuclear substances.
  • The limitation of the liability of the operator as for its amount and its period in time.
  • The nuclear operator must have insurance or any other financial guaranty of an amount equivalent to the one of his liability.
  • Only one jurisdiction is competent to pronounce on the requests for compensation following a nuclear accident, in principle the one of the State in which the accident occurred. The enforcement of the judgments is compelled to each of the Contracting Parties.
  • The principles of non-discrimination with respect to the victims of a nuclear accident, regardless of their nationality, domicile or the place of residence.

The States having ratified the Paris Convention are: Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Slovenia, Spain, Sweden, Switzerland, Turkey, The United Kingdom.

Law of 22 July 1985

The law of 22nd July 1985 specifies the modes of application of the P.C. with respect to the third-party liability of the Belgian nuclear operators. The level of the liability of the operator has been modified by the law of 11th July 2000 and by the law of 13th November 2011 in order to bring it at € 1,2 billion. Nevertheless, the King can, through a Royal Decree decided in the Cabinet, increase or reduce the liability amount of the operator. This explains why in Belgium some nuclear operators see their liability limited to € 74,4 million. In the case of transport of nuclear substances, the limit is € 297 million.

Remark: In Belgium, the nuclear operator, responsible for a nuclear installation, is recognized by Royal Decree.