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Price--Anderson Act: an imaginative approach to public liability concerns

Journal Article · · Forum (Chicago); (United States)
OSTI ID:7308414

Opposition to the Price-Anderson Indemnity Law is felt to be motivated by opposition to new nuclear power plant construction rather than against the insurance industry. Those who oppose nuclear power plants view them as an alternative rather than the additional source of energy needed to meet demand. The Act's historical background is reviewed, leading up to the insurance industry's conclusion that lack of actuarial statistics would prevent it from providing adequate insurance for potential liability claims. The 1957 Act was intended to provide public compensation in the event of an accident and to limit the liability of private industry. Several modifications were enacted over the years to close gaps in the original law and extend protection to new developments. Amendments were passed in 1975 that extend coverage to August 1, 1987, allow industry-financed indemnity to be substituted for government indemnity beyond the insurance available, and increase the limit of liability. Critics contend that (1) although the government has yet to pay out any claims, government indemnity amounts to a subsidy; (2) limits on liability are not reasonable if reactors are safe and licensable; and (3) liability coverage is a disincentive for reactor safety measures. These criticisms are not felt to be valid, however, and the amended bill's provisions are listed and found to be adequate. (DCK)

Research Organization:
Lowenstein, Newman, Reis and Axelrad, Washington, DC
OSTI ID:
7308414
Journal Information:
Forum (Chicago); (United States), Journal Name: Forum (Chicago); (United States) Vol. 12:2; ISSN FRUMC
Country of Publication:
United States
Language:
English