Nuclear Insurance Association of Canada, or NIAC, was established in June 1958 to respond to the emerging needs of a new technology called atomic energy. Governments worldwide were beginning to encourage the development of nuclear energy for commercial purposes and Canada was at the leading edge, being the second nation in the world to control nuclear fission using a reactor.

NIAC is a voluntary non-profit, unincorporated association of insurers through which members may provide protection by participation in property and liability pools.

Management

• Nicholas Smith (Chairman)
• Rob Cruickshank (Vice-Chairman)
• Dermot Murphy (Manager)
• Colleen DeMerchant (Assistant Manager)
• Yuriko Maass (Technical Assistant)
• John Honey (Consultant, Specialists Engineering)
• NIAC Staff Members

Underwriting

NIAC underwrites and accepts nuclear risks located within Canadian territorial limits for Nuclear Liability and Physical Damage.

• Nuclear Liability Insurance. Licensed nuclear operators purchase Nuclear Liability Insurance to satisfy the financial responsibility requirements under the Nuclear Liability Act through NIAC.
• Nuclear Property Insurance. NIAC also provides nuclear property insurance coverage which may be purchased by licensed nuclear operators.

Link for Nuclear Liability Act

The fundamental principles of the nuclear liability regimes are more or less common in almost all world jurisdictions that utilize nuclear power to generate electricity. First of all, strict liability or absolute liability as we use in Canada, channels all liability of a nuclear incident back to the operator regardless of the actual cause of the incident. In addition, there is no right of recourse on the part of the operator. This is the exclusivity of the regime.

The liability is limited in time and amount. This means victims must make their claims for damages arising from a nuclear incident within a specified time frame. Furthermore, the operator is responsible for a specified limit of liability. The operator must purchase appropriate insurance coverage to cover this liability. When this limit is exhausted, it is presumed that supplementary compensation will be provided by the jurisdiction’s government from public funds.

Most of this information comes from the Exposé des Motifs of the Paris Convention on Third Party Liability in the Field of Nuclear Energy. This information may be accessed on the OECD’s Nuclear Energy Agency website.

In Canada our regime is very similar to those of Paris Convention states. The Canadian legislation is called “The Nuclear Liability Act” or NLA.

In Canada, the operator is absolutely and exclusively liable for nuclear damage arising from the nuclear installation they operate. The current limit that the large nuclear power operators must carry is $75 Million. There is a 10 year limitation period in which persons injured must file their claim and, the operators must cover their liability by purchasing from NIAC an appropriate insurance policy.

See Also:

• NIAC Brochure
• Nuclear Energy Liability Exclusion Explained
• Application for Nuclear Energy Liability Coverage Policy
• Renewal Application for Nuclear Energy Liability Coverage Policy
• Nuclear Insurance Seminar May 6, 2008 - Registration Form

For more information on NIAC, please contact us at the below address.

Nuclear Insurance Association of Canada
Colleen P. DeMerchant FCIP, CRM (Assistant Manager)
c/o 150 Commerce Valley Drive West
Lock Box 200
Markham, ON
L3T 7Z3
Tel: 905 695-6657
Fax: 905 771-5312
Email: colleen.demerchant@cgi.com