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Home / IAS Preparation / Civil Liability Nuclear Damage Act

Civil Liability Nuclear Damage Act - Highlights, Objectives, Features, Challenges, Impact And More

Last Updated on Sep 26, 2023
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The Indian Parliament passed the Civil Liability for Nuclear Damage Act 2010 to specify nuclear power stations’ responsibilities in the case of a nuclear catastrophe. Provisions are made to compensate the impacted community or users during a nuclear disaster.

The Civil Liability, Nuclear Damage Act is particularly important from the exam point of view. Questions can be asked about this topic in both the preliminary (GS 1 Exam) and the Government Policies and Interventions Section of the mains examination (GS 2) of UPSC.

In this article on the Civil Liability Nuclear Damage Act, we shall discuss what it is, its overview, various provisions, significance, issues associated & other details. This will be very useful for aspirants in the UPSC Prelims Exam. 

Recent update
  • The Kudankulam project in Tamil Nadu was insured by the New India Assurance (NIA) in March 2022, with participation from all around the world and an amount assured of more than Rs 43,000 crore. The Civil Liability for Nuclear Damage Act of 2010 was used to accomplish this.
  • One of India’s largest nuclear power stations, the Kudankulam project, is being developed by Nuclear Power Corporation of India Ltd. (NPCIL).
  • The insurance coverage for the nuclear power plant will be the same as that of the aviation sector, where the primary insurer reinsures over 90% of the high-value cover with a significant sum covered and multiple foreign reinsurers.

Also, read Pillars of Nuclear Doctrine of India here.

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About Civil Liability for Nuclear Damage Act, 2010

The Civil Liability for Nuclear Damage Act 2010 is an important piece of legislation in India that addresses issues related to liability and compensation in the event of a nuclear incident or accident. The act was enacted to fulfill India's international obligations under the Convention on Supplementary Compensation for Nuclear Damage (CSC), which aims to establish a global framework for compensation in the event of a nuclear incident. The act establishes that the operator of a nuclear installation is liable for any nuclear damage that may occur. The operator is generally a government agency or a corporation designated by the government. The act sets a maximum liability amount that the operator is responsible for in the event of a nuclear incident. This cap is defined in Special Drawing Rights (SDRs), an international monetary unit. The act initially set a low liability cap, which was later increased through amendments to align with international standards.

Highlights of Civil Liability for Nuclear Damage Act, 2010

On November 21, 2010, the Civil Liability for Nuclear Damage Act of 2010 was approved. The Act establishes legal liability for nuclear harm and rapid compensation for victims of nuclear disasters. The law specifies the experts who will assess claims of nuclear injury, sanction compensation, and provide financial assurance.

  • The Civil Liability for Nuclear Damage Bill of 2010 establishes liability and outlines procedures for compensating victims of nuclear damage.
  • The bill enforces a no-fault liability on operators and grants them the right to seek recourse against specific individuals. It sets a liability cap of Rs 500 crore for operators.
  •  In cases where damage surpasses this limit but remains within 300 million Special Drawing Rights (SDR), the central government becomes liable.
  • All operators, excluding the central government, must either obtain insurance coverage or provide financial security to cover their liability. In situations involving government-owned facilities, the government assumes full liability up to 300 million SDR.
  • The bill clearly defines who is eligible to claim compensation and designates the relevant authorities responsible for assessing and granting compensation for nuclear damage.
  • Non-compliance with the bill's provisions can result in penalties for the parties involved.

परमाणु क्षति के लिए नागरिक दायित्व अधिनियम, 2010 हिंदी में भी पढ़ें!

Objectives of Civil Liability for Nuclear Damage Act, 2010
  • To outline the organizations responsible for calculating and disbursing compensation for nuclear injury and who is eligible to make a compensation claim.
  • Ensure all operators have insurance or other financial security before fulfilling their commitments.
  • To provide legal accountability for nuclear harm as well as victim compensation procedures.
  • To establish a system of no-fault liability.

Check the details on the NITI AYOG Here.

Features of Civil Liability for Nuclear Damage Act

Some of the key features of the Act are listed below.

  • The Act establishes the principle of strict liability on the operator of a nuclear installation. The operator is held liable for any nuclear damage that may occur, regardless of whether or not there was any fault or negligence on their part. 
  • The Act sets a limit on the liability of the operator. Initially, the limit was set at 1,500 crore rupees. However, this limit was increased to 1,500 crores of Special Drawing Rights (SDRs) by an amendment in 2010. 
  • The Act ensures that liability is channelled exclusively to the operator. It prohibits any claims for compensation against suppliers unless the nuclear incident is caused by their supply of equipment, material, or services with the intent to cause damage.
  • The Act adopts a no-fault liability regime, meaning that the operator is liable for nuclear damage irrespective of whether their fault or negligence caused it. This provision allows victims to claim compensation without proving the operator's liability.
  • The Act requires operators to maintain nuclear insurance or provide financial security to cover their liability for nuclear damage. This ensures that funds are available for compensation during a nuclear incident.
  • Establishment of Nuclear Damage Claims Commission to adjudicate compensation claims. The NDCC has the authority to determine the amount of compensation and oversee its distribution to the victims.
  • The Act specifies a time limit of three years from the date of the nuclear incident for filing compensation claims. However, in exceptional circumstances, the NDCC can allow claims beyond this time limit.
  • It allows the operator to exercise a right of recourse against a person responsible for the nuclear incident, subject to certain conditions. 

What is CSC?
  • The Convention on Supplementary Compensation (CSC) aims to raise the amount of compensation through public funds made available by the Contracting Parties if the national amount is insufficient to pay the expenditures related to a nuclear disaster.
  • Using an online calculator that implements the formula in Article IV of the CSC, users can determine the amounts that would need to be paid to the international fund in various situations involving current and potential Contracting Parties to the CSC.
  • Both the Paris Convention on Third Party Liability in the Field of Nuclear Energy and the Vienna Convention on Civil Liability for Nuclear Damage have an annex outlining standard civil liability norms that additional States may ratify provided that their domestic legal systems do (including any amendments to either).

Key Issues and Critical Analysis of Civil Liability for Nuclear Damage Act

The parliament believed that strict liability would be preferable for the Act's main objective of enabling victims to receive compensation, given previous examples of man-made disasters like the Bhopal gas tragedy. Thus, strict liability is the main principle of the Civil Liability for Nuclear Damage Act.

  • Additionally, some concerns have been raised against Sections 17 (b) and 46 of the Civil Liability for Nuclear Damage Act.
    • Section 17 (b): The supplier or his employee could be held accountable in addition to the operator, the Nuclear Power Corporation of India, if a nuclear accident was brought on by their carelessness, such as the distribution of materials or equipment with obvious or hidden flaws or substandard services.
    • Section 46: Section 46 allows victims of a nuclear catastrophe to seek claims for damages under tort law against the operator or the supplier, even though such legal actions would fall beyond the purview of the CLNDA and its liability ceiling, subjecting providers to unbounded responsibility.

These clauses will likely increase insurance costs for suppliers, maybe beyond what is financially possible and within the parameters of competitive energy pricing.

Among the few problems with the act are the following:

Liability is not fixed.

  • One issue with operating these nuclear reactors is the potential for liability.
  • Because the nuclear facilities in India are state-owned and operated, the common taxpayers will ultimately be liable for paying for such catastrophes.
  • The benefits and drawbacks of opening the area to outside private players should be considered.

Compensation Caps

  • The act establishes a limit on the obligation of nuclear plant operators.
  • Operators can only use up to 15 billion Rupees of the Special Drawing Rights (SDR) facility provided by the International Monetary Fund (IMF). In contrast, the government can only use up to US $ 300 million.
  • When the damage approaches, the cap is when the primary issue with this capping arises.
  • The Act will only be applied in cases with large nuclear losses because it doesn’t specifically address damages that exceed the cap.

Neglect of Other Costs

  • Tragedies in the past, such as Chernobyl and Fukushima, have demonstrated that there are several more expenses that the party causing the harm must pay for in addition to providing compensation.
  • These expenses cover the price of disposing of radioactive waste appropriately and safely.
  • These activities necessitate a substantial financial outlay in addition to extreme caution.
  • The Act does not consider these additional expenses, which could be problematic.

Civil Liability for Nuclear Damage Act – Environmental Loss
  • Under the Civil Liability for Nuclear Damage Act, the Central Government has been fixed as the competent authority to decide the magnitude of Environmental Loss and Economic Damage.
  • However, when the Central Government is one of the parties to compensate the affected users or citizens, this might result in a conflict of interest.

Check the Other Articles DeITY for Competitive Exams here.

Effects of Civil Liability for Nuclear Damage Act on Common Indian People
  • The power of an operator to suit is only an enabling provision, not an obligation, according to Section 17 of the CNLD Acts.
  • As a result, operators won’t be able to sue providers. Patients will be more likely to have accidents as a result.
  • Another restriction established by Section 46 prohibits Indian victims from seeking justice in a foreign court. Additionally, submitting a claim for compensation under a different statute is prohibited.
  • The government will also be liable for an additional Rs 1110 crores in a nuclear disaster.
  • As a result, money that the suppliers ought to have paid will be spent by the Indian government.
  • Last but not least, the cap of Rs 2610 Crore put under this act will not be adequate in case of a large-scale nuclear disaster, as was witnessed during the Fukushima Nuclear Disaster. This will harm the potential victims.

Indian Nuclear Insurance Pool
  • On June 12th, 2015, the Indian Nuclear Insurance Pool (INIP) was established.
  • This was done to fulfil its obligations under the Civil Liability for Nuclear Damage (CLND) Act of 2010.
  • Under this, the General Insurance Corporation of India and other Indian insurance companies have established the Indian Nuclear Insurance Pool (INIP), which has an Rs. 1500 crore capacity.

Conclusion

Thus, despite some concerns raised by various stakeholders, the Civil Liability for Nuclear Damage Act is a step in the right direction as it helps to fix the responsibility of the Nuclear Power Plants in case of a Nuclear Disaster while also providing the users with the appropriate level of compensation. The concerns also need to be resolved immediately by following a multi-stakeholders approach.

Civil Liability Nuclear Damage Act (UPSC Polity): Download PDF Here!

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Civil Liability Nuclear Damage Act - FAQs

A circumstance that takes place at any nuclear facility associated with the nuclear fuel cycle, such as a nuclear reactor, results in a large radiation leak into the environment.

Nuclear disasters could be caused by coolant loss, coolant pressure loss, or insufficient coolant flow rate, as well as criticality excursions, in which the reactor is operated at a power level exceeding its design limits.

It is the responsibility of the operator of the nuclear installation where the nuclear accident occurred to pay for any damage caused due to nuclear accidents.

Operators that run nuclear power plants are responsible for this under the current law.

Contractual parties may combine public money under the CSC in accordance with their installed nuclear capacity in order to maximize the amount of compensation in the case of a nuclear accident. It became enforceable on 12 September 1997.

In the history of civil nuclear power, two significant nuclear power plant disasters have taken place. These are Chernobyl and Fukushima Daiichi.
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