Civil Liability for Nuclear Damage Act, 2010

The Civil Liability for Nuclear Damage Act, 2010 makes the operator of a nuclear installation primarily responsible for compensating victims of a nuclear incident. It follows no-fault liability and channels claims to the operator, so claimants need not prove negligence or proceed directly against suppliers.

Nature and channeling of liability

Under Section 4, the operator is liable for nuclear damage caused by an incident at its installation or involving nuclear material for which it is responsible. Liability is strict but subject to the Act's specified exceptions.

• The operator is liable regardless of fault, negligence or wrongful intent.
• For claims under the Act, liability is legally channelled to the operator, rather than distributed among contractors and suppliers.
• Under Section 5, specified events such as armed conflict, hostilities, civil war or insurrection can exempt the operator.

Liability limits and financial security

Under Section 6, the overall liability for each incident is the rupee equivalent of 300 million Special Drawing Rights, or a higher amount notified by the Central Government. Within this ceiling, the operator's liability is capped according to the type of installation.

• For a nuclear reactor of at least 10 MW thermal power, the statutory operator-liability ceiling is Rs 1,500 crore per incident.
• The Central Government bears liability beyond the operator's applicable ceiling, up to the overall amount prescribed by the Act.
• Under Section 8, operators must maintain insurance or other financial security covering their liability; Central Government-owned installations are exempt from this requirement.

Operator's right of recourse

After paying compensation, the operator may recover specified amounts from another responsible party under Section 17. This does not replace the victim's primary claim against the operator.

• Recourse is available when expressly provided in a written contract.
• Recourse may arise where a supplier's act, including defective equipment, defective material or substandard services, caused the incident.
• Recourse is also available against an individual who intentionally caused the nuclear damage.