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Nuclear Power: Insurance

Volume 486: debated on Monday 12 January 2009

To ask the Secretary of State for Energy and Climate Change which insurance companies insure nuclear installations owned by the Nuclear Decommissioning Authority; in what country or countries they are based; and what criteria were applied in their selection. (244589)

The Nuclear Decommissioning Authority arranges insurance for its nuclear installations with the following insurers:

Type of insurance

Insurer

Domicile

All Risks including Machinery Breakdown and Business Interruption

Rutherford Indemnity Ltd.

Guernsey

Construction All Risks

Rutherford Indemnity Ltd.

Guernsey

Nuclear Site Liability

Rutherford Indemnity Ltd.

Guernsey

Nuclear Marine Transit Liability

Rutherford Indemnity Ltd.

Guernsey

Liability Package

Rutherford Indemnity Ltd.

Guernsey

Primary Public/Products Liability

CNA Insurance Company (Europe) Ltd.

UK

Excess General Public/Products Liability

QBE Insurance Group Ltd.

UK

AIG UK Ltd.

UK

Radiation Liability

Rutherford Indemnity Ltd.

Guernsey

Employers’ Liability

AIG UK Ltd

UK

Motor Accidental Damage, Fire and Theft

Rutherford Indemnity Ltd.

Guernsey

UK Motor Third Party Liability

Royal and Sun Alliance Insurance plc

UK

Group Sickness

Rutherford Indemnity Ltd.

Guernsey

Group Life

Rutherford Indemnity Ltd.

Guernsey

Personal Accident and Travel

Royal and Sun Alliance Insurance plc

UK

Marine Package

Rutherford Indemnity Ltd.

Guernsey

Third Party Airside Liability

Lloyd’s underwriters

UK

Rutherford Indemnity Ltd. is a wholly owned subsidiary of the Nuclear Decommissioning Authority. The key criteria that the NDA uses in assessing potential insurers is value for money.

To ask the Secretary of State for Energy and Climate Change with reference to his statement of 19 November 2008, Official Report, column 126WH, on nuclear industry finance, what additional assessment the Nuclear Decommissioning Authority made of the availability of private sector insurance for the public body to manage Sellafield. (244591)

The Sellafield site is managed by Sellafield Ltd., a company not a public body. The low level waste repository facility near Drigg is similarly managed by a private company. It was necessary to provide the contractor for this facility with a nuclear indemnity but before doing so I am told that the Nuclear Decommissioning Authority (NDA) approached the private nuclear insurance market in 2007 in connection with insurance for nuclear liability claims to courts outside the UK and not party to the Paris and Brussels Convention. It became clear from these discussions that commercial insurers were not prepared to quote on these potential liability claims. This established an insurance industry position in principle, in light of which the NDA and its professional advisors concluded that the position that insurers would take on the specific issue at Sellafield was clear and therefore no additional conversations were required.