TNAG-1507-FCO40-2065-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 48

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As people know little about China's laws in this regard,

it is difficult to say whether Hongkong people would be protected by Chinese law and be able to claim damages from China in the event of a nuclear accident, the insurance professional said.

Another insurance expert remarked that many of the countries in Northern Europe which were affected by the Chernobyl accident wanted to claim damages from the Sovist Union. But it is still debatable whether a country can claim insurance damages from another country. The same problem would apply to Hong Kong should an accident occur in Daya Bay before 1997 because Hong Kong would still be

British territory.

He said that at present Hongkong people's position in third party liability insurance for Daya Bay would ultimately depend on the contents of the insurance policy. Judging from the progress of the

project, insurance at this stage will only cover the needs of construction and it is believed that provisions for third party liability

have yet to be drafted. Another insurance professional familiar with

the insurance business in China said that insurance covering the

construction of the plant came into effect only on 7 October and the question of protection for Hong Kong residents after the plant comes into

operation is still a remote issue.

At

It is learned that the People's Insurance Co. of China has no experience of providing third party liability insurance and to date,

has not invited any experienced insurance company for assistance. present, cede insurance for third party liability concerning nuclear plants is not commonly available in the international insurance market and only atomic energy co-insurance organizations on an international

level will underwrite the insurance for these plants. The co-insurance organizations, which can be found in the U.S., France and U.K., formed by nuclear plants and undertake to share the risks among themselves. China is expected to join one of these organizations to seek insurance

for its Daya Bay plant.

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