Nuclear exclusion clause
Encyclopedia
The nuclear exclusion clause is a clause
which excludes damage caused by nuclear and radiation accidents
from regular insurance policies of, for example, home owners.
As operators of nuclear power plants often have limited
third-party liability
, in the case of a nuclear accident it is possible that private property damage would be covered neither by the operator of the nuclear power plant nor by the property owners' insurance.
There is no nuclear exclusion clause in health insurance
policies.
Exclusion clause
An exclusion clause is a term in a contract that seeks to restrict the rights of the parties to the contract.Traditionally, the district courts have sought to limit the operation of exclusion clauses...
which excludes damage caused by nuclear and radiation accidents
Nuclear and radiation accidents
A nuclear and radiation accident is defined by the International Atomic Energy Agency as "an event that has led to significant consequences to people, the environment or the facility...
from regular insurance policies of, for example, home owners.
- Example: Notwithstanding anything to the contrary herein, it is hereby understood and agreed that this policy shall not apply to any loss, damage or expense due to or arising out of, directly or indirectly, nuclear reaction, radiation or radioactive contamination regardless of how it was caused.
As operators of nuclear power plants often have limited
Vienna Convention on Civil Liability for Nuclear Damage
Vienna Convention on Civil Liability for Nuclear Damage-Background:In September 1997, many of the world's governments took a significant step forward in improving the liability regime for nuclear damage...
third-party liability
Liability insurance
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy...
, in the case of a nuclear accident it is possible that private property damage would be covered neither by the operator of the nuclear power plant nor by the property owners' insurance.
There is no nuclear exclusion clause in health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
policies.
See also
- Terrorism insuranceTerrorism insuranceTerrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities....
- Contract adjustment boardContract adjustment boardIn government contracting, a Contract Adjustment Board is a department board at the Secretariat level which deals with disputes and requests for extraordinary relief under Public Law 85-804 of Aug. 28, 1958.In brief:...
- Public Law 85-804
- Price-Anderson Nuclear Industries Indemnity ActPrice-Anderson Nuclear Industries Indemnity ActThe Price-Anderson Nuclear Industries Indemnity Act is a United States federal law, first passed in 1957 and since renewed several times, which governs liability-related issues for all non-military nuclear facilities constructed in the United States before 2026...