With global energy dependency rapidly shifting from conventional sources to nuclear power, it is natural to fear a Chernobyl or Fukushima-like incident anywhere in the world today. Human exposure to nuclear risks is also rising through genetic research in agriculture, radiation use in healthcare, and the increasing possibility of nuclear conflict.
In such circumstances, a natural question arises: do our everyday insurance policies cover nuclear risks?
As on date, none of the insurers in India provide coverage for nuclear exposure or related nuclear incidents.
Whether personal, institutional, or commercial, almost all insurance policies exclude coverage for risks arising out of nuclear exposure or similar events.
Apart from underwriting challenges due to lack of data, the core reason is structural: nuclear exposure is rarely individualistic. It typically affects communities, towns, or larger populations and arises from the industrial use of fissile materials governed by specific legislation.
In India, that legislation was the Civil Liability for Nuclear Damage (CLND) Act, 2010.
Public risk framework
Under the CLND Act, nuclear risk is treated as a public liability risk rather than an individual one.
To support India’s nuclear energy infrastructure, the government created the Indian Nuclear Insurance Pool (INIP) on 12 June 2015. The INIP has a ₹1,500 crore capacity and was introduced by the General Insurance Corporation of India (GIC-Re) in partnership with eleven local non-life insurance companies.
The pool addresses nuclear liability issues and promotes the construction of new nuclear power plants by offering insurance coverage for liabilities arising under the Civil Liability for Nuclear Damage (CLND) Act, 2010.
From CLND to SHANTI
In December last year, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 repealed the CLND Act with the objective of developing and promoting nuclear energy.
Among other provisions, the contentious Section 17 of the previous CLND Act — which granted the operator the right of recourse (ROR) to recover compensation paid to victims from suppliers — has been eliminated under the new SHANTI Act.
Such ROR is now available only if there is a written contract to that effect or if nuclear damage is caused by wrongful intent.
This removal of the right of redress aligns India’s framework with international agreements such as the Convention on Supplementary Compensation (CSC), which aims to foster global collaboration in nuclear safety and compensation. India is a signatory to the CSC.
The operator’s liability remains capped, consistent with international treaties and municipal laws worldwide. This effectively means that liability beyond the operator’s capacity ultimately rests with the Government of India.
Any liability not covered by an insurer shall also be borne by the Government of India.
Affected persons may approach the Claims Commissioner appointed by the Government under the newly graded framework to resolve disputes and obtain compensation in a time-bound manner.
Consider a scenario where a nuclear weapon is deployed within India’s borders, triggering war risk. Risks arising from war are generally excluded under insurance contracts worldwide.
Thus, even in extreme geopolitical scenarios, insurance protection would not apply.
Health insurance question
Now consider a civil nuclear liability situation: radiation leakage from a nuclear reactor affecting scientists and researchers working there.
Would their health insurance policies cover such nuclear exposure?
The short answer is NO.
The longer answer is that the Government of India, through its policies or social security frameworks such as the Indian Nuclear Insurance Pool, may provide coverage. However, as far as corporate insurers are concerned, none currently cover such risks.
Researchers and scientists may approach insurers seeking limited indemnity coverage, but whether such demands are met — and how the INIP evolves — remains to be seen.
This issue also assumes significance from the perspective of investors and stakeholders outside India.
Notably, in December last year, the Government of India permitted up to 100% Foreign Direct Investment (FDI) in the insurance sector and 49% FDI in the nuclear sector. This move is expected to attract more investment into India’s nuclear ambitions, aimed at fostering a safe and innovative environment for both civil and defence nuclear programmes.
How nuclear liability risk allocation evolves in this new investment climate will be closely watched.
Lokanath P.Kar, founder of ElpeeCo, an insurance-focused law firm