Türkiye: Liability insurance requirements for nuclear pool take effect
Source: Middle East Insurance Review | Dec 2023
The working procedures and principles of Türkiye’s Nuclear Insurance Pool are set out in a regulation that took effect on its publication by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) in the Official Gazette on 19 October 2023.
Under the “Regulation on the Working Procedures and Principles of the Nuclear Insurance Pool”, the pool is managed and operated by the Special Risks Management Center (ÖRYM). The income and expenses of the pool and all its records and transactions will be tracked and accounted for in a separate account from other classes of insurance under the responsibility of ÖRYM.
Operators of nuclear facilities are obliged to take out insurance within the scope of their legal liabilities for each nuclear facility, each transportation activity and each transit of nuclear materials within Türkiye. Operators are obliged to take out insurance before the authorisation for the nuclear facility is given by the Nuclear Regulatory Authority, before a permit is given for the transportation of nuclear materials and 30 days before the transit takes place.
The pool will pay compensation for nuclear damage suffered in the event of a nuclear incident. The scope of coverage of the insurance offered by the pool includes:
- Loss of life or injuries
- Damage or loss of property
- Economic damage suffered by a person who is determined by the competent court and has the right to claim compensation in respect of the loss or damage incurred as a result of the loss or damage
- The cost of measures taken to restore the damaged environment, provided that the damage is not insignificant and the necessary measures have been or will be taken
- Loss of income incurred as a result of significant damage to the environment, arising from a direct economic benefit obtained from the use of the environment
- Costs of preventive measures and other losses and damages arising from these measures
- The following losses are outside the scope of the pool insurance:
- Damages to the nuclear facility itself or to another nuclear facility, including a nuclear facility under construction on the site where the facility is located.
- Damage to any property used or to be used in connection with any such facility located on the same site.
- Nuclear damages resulting from a nuclear incident resulting directly from an armed conflict, hostile acts, civil war or insurrection.
The insurance amount per nuclear incident is:
- EUR700m ($25m) for nuclear reactors with a thermal power over 10 megawatts and other nuclear facilities to be determined by the evaluation to be made before the license is granted by the Authority to operate nuclear facilities,
- EUR70m for nuclear facilities that are not within the scope of clause (a),
- EUR80m for the transportation of nuclear materials,
- EUR80m for the transit of nuclear materials.
- The regulation is jointly enforced by the Nuclear Regulatory Authority and the SEDDK. M