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6.
8
Third Party Nuclear Liability
Even though the nuclear power station will be commissioned in a few
years time, GNPJVC has begun negotiation with the People's
Insurance Company of China (PICC) on the arrangement of the third party nuclear liability insurance. PICC is now actively studying the international practice and scope of insurance on this. As this issue is still being explored, GNPJVC plans to enter into more detailed discussion with PICC by the end of this year.
Regarding the sum insured for the third party nuclear liability insurance, the Chinese Government has considered the international practice and the Paris and Vienna Conventions before setting the minimum limit of RMB18 million yuan. The Chinese Government will follow the international practice and the Paris and Vienna Conventions as far as practicable. According to the announcement of the State Council, should damages in a nuclear incident exceed RMB18 million yuan, the Chinese Government will offer the necessary and limited financial assistance of up to RMB300 million yuan.
The third party nuclear liability insurance policy will be taken out before the arrival of the nuclear fuel on site.