Insurance Coverage in Crisis: Navigating Health Claims Amid Nuclear Accidents and War

Nuclear Science and Insurance: Understanding the Risks and Protections

Health insurance policies in India, as per IRDAI guidelines, exclude claims arising from war, invasion, acts of a foreign enemy, nuclear weapons/radiation, and radioactive contamination. This means that individuals hospitalized due to a nuclear blast, radiation sickness, or war injuries will have their claims denied by their insurers, regardless of the policy type.

The exclusion of nuclear-related risks exists because the scale of casualties would be uninsurable, with mass simultaneous claims potentially bankrupting private insurers. These risks are considered a sovereign/government responsibility. In such scenarios, compensation and treatment may fall under government disaster relief mechanisms, not private insurance.

The Civil Liability for Nuclear Damage (CLND) Act, 2010 treats nuclear coverage as a public risk rather than an individual one. To support India's nuclear energy ambitions, the Indian Nuclear Insurance Pool (INIP) was established in June 2015 with a capacity of Rs 1,500 crore and backed by the General Insurance Corporation of India (GIC) and eleven non-life insurers.

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The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 replaced the older CLND Act, removing a provision that previously allowed nuclear plant operators to seek compensation from their suppliers. The new law brings India in line with international conventions on nuclear liability, including the Convention on Supplementary Compensation (CSC).

Under the new framework, the liability of a nuclear plant operator is capped, and any liability beyond that cap is ultimately borne by the Government of India. Affected individuals can approach a Claims Commissioner to resolve their claims in a structured and time-bound manner.

In everyday scenarios, such as a nuclear reactor developing a fault and nearby scientists and researchers being exposed to radiation, health insurance policies will not cover these risks. Instead, individuals may need to rely on government schemes like the INIP or explore limited indemnity options with their insurers.