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May 04, 2012 at 09:49am IST

Koodankulam plant insured for Rs 7,358 crore

CHENNAI: Nuclear Power Corporation of India has insured Koodankulam nuclear plant under the Erection Always insurance cover of United India Insurance Company, according to chairman and managing director G Srinivasan.
He said on Wednesday that besides Koodankulam, the insurance company is also providing insurance cover to Bhavini under the same scheme.
P K Mahapatra, deputy GM of United India Insurance said the company is the sole insurer for Koodankulam nuclear plant, which has been insured for `7,358 crore. “The policy was taken in February 2005 and it is still continuing. It will come to an end once the fuel rods are inserted in the reactor and the plant becomes operational,” said Mahapatra.
He said once the plant is operational, it will be insured again but there will be some variations in the value.
Similarly, Bhavini nuclear project is insured under Erection Always policy for `2,500 crore and simulataneously under the operational policy for `1,500 crore.
He also said the government is soon coming up with a legislation to make a liability clause mandatory. He said Indian insurance companies don’t have that much liquidity to cover any such liability, and as such it is in the domain of international insurance firms.