The Civil Liability for Nuclear Damage Act, 2010 - India

The Civil Liability for Nuclear Damage Act, 2010 (“Nuclear Liability Act” or the “Act”) came into force from November 11, 2011 in wake of the Indo-US nuclear deal of 2008, to provide prompt compensation to victims of nuclear incidents through a no-fault liability regime.

The Atomic Energy Regulatory Board constituted under the Atomic Energy Act, 1962 is required to notify a nuclear incident within a period of fifteen days from the date of occurrence of the incident.

Under the Act, the operator of the nuclear installation is held liable for nuclear damage caused by a nuclear incident.

“Operator” is defined as the Central Government or any authority or corporation established by it or a Government company who has been granted a licence pursuant to the Atomic Energy Act, 1962 for the operation of that installation.

The liability of the operator shall be strict and based on a principle of no-fault liability. The nuclear incident could have occurred at the nuclear installation or during transport of nuclear material, in which case the consignor shall be deemed to be the operator.

The maximum liability is fixed at three hundred million Special Drawing Rights (international reserve asset maintained by the International Monetory Fund with which currency can be exchanged).

The liability for each nuclear incident is as follows:

Nuclear reactors having thermal power equal to or above 10 MW, Rs.1,500 crores.

For spent fuel reprocessing plants, Rs.300 crores.

For research reactors having thermal power below 10 MW, fuel cycle facilities other than spent fuel reprocessing plants and transportation of nuclear materials, Rs.100 crores.

The Central Government is responsible for a nuclear damage incident to the extent the liability exceeds that of the operator.

The operator is required to take out an insurance policy covering his liability before starting nuclear operations (does not apply to a nuclear installation owned by the Central Government).

Whoever suffers nuclear damage is entitled to claim compensation from the Claims Commissioner for such area, appointed by the Central Government. The application is required to be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damage. However, the right to claim extinguishes if claim is not made within a period of ten years, in case of damage to property and twenty years in case of personal injury to person from the date of occurrence of the nuclear incident as notified.