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Third party liability

Act to amend the Nuclear Damage Compensation Law and the Law on Nuclear Liability Indemnification Contracts (2009)

The legislation to amend the Nuclear Damage Compensation Law and the Nuclear Liability Indemnification Contract Law was adopted on 13 April 2009, published on 18 April 2009 and shall enter into force on 1 January 2010.

The amendment was based on the first report prepared by the Nuclear Liability System Review Committee which focused on making the system more functional following the criticality accident of 1999 at a conversion facility in Tokaimura. The revision is as follows:

(1) ten year extension of temporary provisions. The temporary provisions of the governmental assistance to nuclear operators and the governmental indemnification contracts were extended for ten years;

(2) increasing the amount of financial security. The amount of financial security was doubled from 60 billion yen to 120 billion yen;

(3) promoting out-of-court settlement of disputes. The function of establishing guidelines for promoting out-of-court settlements was assigned to the nuclear damage compensation dispute examination board;

(4) partial outsourcing of the governmental reimbursement operation.
Indemnity reimbursement operations under the governmental indemnification contract may be outsourced to insurance companies.

The Nuclear Liability System Review Committee continues to carry out further reviews and will release a report by December 2009 comprising both a manual for prompt and appropriate settlement of compensation and nuclear liability treaties.

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Last updated: 12 June 2009