Nuclear Installations Act 1965

18 General cover for compensation by virtue of ss. 7 to 10. U.K.

(1) In the case of any occurrence [F1 or event] in respect of which one or more persons incur liability by virtue of section 7, [F2 7B,] 8, 9 or 10 of this Act or by virtue of any relevant foreign law made for purposes corresponding to those of any of those sections, but [F3 subject to subsections (1C) to (4B)] and to sections 17(3)(b) and 21(1) of this Act, there shall be made available out of moneys provided by Parliament such sums as, when aggregated—

(a) with any funds required by, or by any relevant foreign law made for purposes corresponding to those of, section 19(1) of this Act to be available for the purpose of satisfying claims [F4 of that category] in respect of that occurrence [F1 or event] against any licensee or relevant foreign operator; and

(b) in the case of a claim by virtue of any such foreign law, with any relevant foreign contributions towards the satisfaction of claims in respect of that occurrence [F1 or event], [F5 ; and

(c) in the case of an occurrence [F1 or event] in respect of which the Authority incurs liability, with any amounts payable under a contract of insurance or other arrangements for satisfying claims in respect of that occurrence [F1 or event] against the Authority,]

may be necessary to ensure that all claims in respect of that occurrence [F1 or event] [F6 made within the limitation period applicable to the claim] and duly established, excluding, but without prejudice to, any claim in respect of interest or costs, are satisfied up to [F7 the aggregate amount specified in subsection (1A) of this section]

[F8 (1ZA) For the purposes of subsection (1), the limitation period applicable to a claim is—

(a) subject to paragraphs (b) to (d), the period of 10 years beginning with the relevant date;

(b) subject to paragraphs (c) and (d), in the case of a claim in respect of such injury as is described in section 15(3) or (4), the period of 30 years beginning with the relevant date;

(c) in the case of a claim that may be entertained in accordance with section 15(6), a period beginning with the relevant date and ending in accordance with section 15(6)(b);

(d) in the case of a claim by virtue of such a relevant foreign law as is mentioned in subsection (1) that may be entertained in accordance with provisions of that law made for purposes corresponding to section 15(6), the period applying to that claim by virtue of such provisions of that law.

(1ZB) In subsection (1ZA) references to the relevant date are to be construed in accordance with section 15(8).]

[F9 (1A) The aggregate amount referred to in subsection (1) of this section is the equivalent in sterling of [F10 the aggregate of 1,500 million euros and the value of the CSC international pooled funds] on—

(a) the day (or first day) of the occurrence [F11 or event] in question, or

(b) if the Secretary of State certifies that another day has been fixed in relation to the occurrence [F12 or event] in accordance with an international agreement, that other day.

(1B) The Secretary of State may with the approval of the Treasury by order increase or further increase the sum expressed in [F13 euros] in subsection (1A) of this section; but an order under this subsection shall not have effect in respect of [F14 an occurrence or event happening before (or beginning to happen before)] the order comes into force.]

[F15 (1C) The reference in subsection (1)(a) to the funds required by section 19(1) to be available for the purpose of satisfying claims of a particular category is to be treated, in the case of claims in respect of an occurrence or event to which section 16(1)(f) applies, as a reference to such funds as are required by section 19(1) to be so available at the time when the occurrence or event in question happens or begins to happen.]

[F16 (1D) Subsection (1) does not apply to a claim that need not be satisfied, or to so much of a claim as need not be satisfied, because of—

(a) section 16(1ZA) [F17 , (1ZAA)] or (1ZB),

(b) a relevant foreign law made for purposes corresponding to those of section 16(1ZA) [F18 , (1ZAA)] or (1ZB) which is given effect by section 16(2), or

(c) section 16(3B) [F19 , (3BA), (3BB), (3BD), (3BE)] or (3C).

(1E) Subsection (1) does not apply to a claim that need not be satisfied, or to so much of a claim as need not be satisfied, because of any relevant foreign law made for purposes corresponding to those of the provisions mentioned in subsection (1D).]

(2) Subsection (1) of this section shall not apply to any claim by virtue of such a relevant foreign law as is mentioned in that subsection [F20 if—

(a) the injury, damage or significant impairment of the environment is incurred within the territorial limits of a country or territory that is not a qualifying territory,

(b) the injury, damage or significant impairment of the environment is incurred in, under or above the sea but not—

(i) within the territorial limits of any country or territory,

(ii) in or above the sea within the exclusive economic zone of any qualifying territory, or

(iii) on the continental shelf of any qualifying territory,

(c) in relation to compensation that would but for this subsection be claimed under such provision of the relevant foreign law as is made for purposes corresponding to section 11H, the measures in question were or would be taken in a place by reference to which compensation is excluded by paragraph (a) or (b).

(2A) The exceptions that have effect by virtue of—

(a) paragraph (b) of subsection (2), or

(b) paragraph (c) of subsection (2) so far as it relates to paragraph (b),

do not apply to injury or damage incurred by, or by persons or property on, a ship or aircraft registered in a qualifying territory.]

(3) Where any claim such as is mentioned in subsection (1) of this section is satisfied wholly or partly out of moneys provided by Parliament under that subsection, there shall also be made available out of moneys so provided such sums as are necessary to ensure the satisfaction of any claim in respect of interest or costs in connection with the first-mentioned claim.

[F21 (4) In relation to liability by virtue of any relevant foreign law, there shall be left out of account for the purposes of subsection (1) of this section any claim which, though made within [F22 the limitation period mentioned in paragraph (a) or (as the case may be) paragraph (b) of subsection (1ZA)], was made after the expiration of any period of limitation imposed by that law and permitted by a relevant international agreement.

[F23 (4ZA) But a claim is not to be left out of account for the purposes of subsection (1) if it may be entertained as described in subsection (1ZA)(d) and is made within the limitation period applicable to that claim.]

F24 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4B) Where a relevant foreign law does not [F25 provide in pursuance of a relevant international agreement for sums additional to those mentioned in subsection (1)(a) to be made available out of public funds], then in relation to liability by virtue of that law in respect of any occurrence [F26 or event]—

(a) subsection (1) of this section shall not have effect unless the person (or one of the persons) liable is a licensee, [F27 an operator of a relevant disposal site,] the Authority or the Crown; and

(b) if a licensee, [F28 an operator of a relevant disposal site,] the Authority or the Crown is liable, subsection (1) shall have effect as if for the reference to the amount specified in subsection (1A) there [F29 were substituted a reference to the amount specified in section 16(1ZA) [F30 or, where relevant, (1ZAA)] or, if more than one such person were liable, to that amount multiplied by the number of those persons.]]

(5) Any sums received by the Minister by way of a relevant foreign contribution towards the satisfaction of any claim by virtue of section 7, 8, 9 or 10 of this Act shall be paid into the Exchequer.

[F31 (5A) Before exercising the function under subsection (1B) in or as regards Scotland, the Secretary of State must consult the Scottish Ministers.]

F32 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 18(1) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(2)(a) (with art. 40)

F2 Word in s. 18(1) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(2)(b) (with art. 40)

F3 Words in s. 18(1) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(2)(c) (with art. 40)

F4 Words in s. 18(1)(a) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(2)(d) (with art. 40)

F5 S. 18(1)(c) and preceding word inserted by Atomic Energy Act 1989 (c. 7, SIF 8), s. 3

F6 Words in s. 18(1) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(2)(e) (with art. 40)

F7 Words substituted by Energy Act 1983 (c. 25, SIF 44:1), s. 28(1)(b)

F8 S. 18(1ZA)(1ZB) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(3) (with art. 40)

F9 S. 18(1A)(1B) inserted by Energy Act 1983 (c. 25, SIF 44:1), s. 28(2)

F10 Words in s. 18(1A) substituted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 6(2)

F11 Words in s. 18(1A)(a) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(4)(b) (with art. 40)

F12 Words in s. 18(1A)(b) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(4)(c) (with art. 40)

F13 Word in s. 18(1B) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(5)(a) (with art. 40)

F14 Words in s. 18(1B) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(5)(b) (with art. 40)

F15 S. 18(1C) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(6) (with art. 40)

F16 S. 18(1D)(1E) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(7) (with art. 40)

F17 Word in s. 18(1D)(a) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 6(3)(a)

F18 Word in s. 18(1D)(b) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 6(3)(a)

F19 Words in s. 18(1D)(c) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 6(3)(b)

F20 S. 18(2)(a)-(c)(2A) and word substituted for words (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(2) (with art. 40)

F21 S. 18(4)(4A)(4B) substituted for s. 18(4) by Energy Act 1983 (c. 25, SIF 44:1), s. 28(3)

F22 Words in s. 18(4) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(3) (with art. 40)

F23 S. 18(4ZA) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(4) (with art. 40)

F24 S. 18(4A) omitted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by virtue of The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(5) (with art. 40)

F25 Words in s. 18(4B) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(6)(a) (with art. 40)

F26 Words in s. 18(4B) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(6)(b) (with art. 40)

F27 Words in s. 18(4B)(a) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(6)(c) (with art. 40)

F28 Words in s. 18(4B)(b) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(6)(c) (with art. 40)

F29 Words in s. 18(4B)(b) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 31(6)(d) (with art. 40)

F30 Words in s. 18(4B)(b) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 6(4)

F31 S. 18(5A) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(8) (with art. 40)

F32 S. 18(6) omitted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by virtue of The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 30(9) (with art. 40)

Modifications etc. (not altering text)

C1 S. 18(1B): functions made exercisable only after consultation with the Scottish Ministers (S.) (1.7.1999) by S.I. 1999/1750, arts. 1(1), 4, Sch. 3 (with art. 7); S.I. 1998/3178, art. 3