Nuclear Installations Act 1965

Cover for compensation U.K.

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

19 [F33 Cover] for licensee’s [F34 or operator’s] liability. U.K.

(1) Subject to [F35 section 3(11)] of this Act and to [F36 subsections (2E) and] (3) of this section, where a nuclear site licence has been granted in respect of any site, the licensee shall make such provision (either by insurance or by some other means) as [F37 the appropriate authority] may with the consent of the Treasury approve for sufficient funds to be available at all times to ensure that any claims which have been or may be duly established against the licensee as licensee of that site by virtue of section 7 of this Act or any relevant foreign law made for purposes corresponding to those of section 10 of this Act (excluding, but without prejudice to, any claim in respect of interest or costs) are satisfied up to [F38 the required amount] [F39 appropriate to the category or categories into which any such claims would fall] in respect of each severally of the following periods, that is to say—

(a) the current cover period, if any;

(b) any cover period which ended less than [F40 30 years] before the time in question;

(c) any earlier cover period in respect of which a claim remains to be disposed of, being [F41 a claim made within the limitation period applicable to the claim (as defined for the purposes of section 18(1));]

and for the purposes of this section the cover period in respect of which any claim is to be treated as being made shall be that in which the beginning of [F42 that limitation period] fell.

[F43 (1A) In this section—

(a) “the required amount”, in relation to the provision to be made by a licensee in respect of a cover period for claims of a particular category, means an aggregate amount equal to the amount applying under paragraph (a), (c), (d) or (as the case may be) (f) of section 16(1) to the licensee, as licensee of the licensed site in question, in respect of an occurrence or event within that cover period;

(b) the category of a claim depends on which of paragraphs (a), (c), (d) and (f) of section 16(1) applies to the occurrence or event in respect of which the claim is made.

(1B) Where the amount applying under section 16(1)(f) increases because one of the periods in section 16B comes to an end during a cover period, the aggregate amount that is the required amount as regards that cover period and claims in respect of such occurrences or events as fall within section 16(1)(f) increases accordingly.]

(2) In this Act, the expression “cover period” means [F44 , subject to the following provisions of this section, the period of the licensee’s responsibility,] and for the purposes of this definition the period of the licensee’s responsibility shall be deemed to include any time after the expiration of that period during which it remains possible for the licensee to incur any liability by virtue of [F45 section 7(1B)(b)], or by virtue of any relevant foreign law made for purposes corresponding to those of section 10 of this Act.

[F46 (2A) When the amount applicable to a licensee, as licensee of a licensed site, under paragraph (a), (c), (d) or (f) of section 16(1) changes as a result of—

(a) the coming into force of regulations made under section 16(1)(a), (c) or (d),

(b) an alteration relating to the site which brings it within, or takes it outside, the description prescribed by regulations made under section 16(1)(a) or (c), or

(c) the coming into force of an order made under section 16(1A),

the current cover period relating to that person as licensee of that site is to end and a new cover period is to begin.]

[F47 (2B) The current cover period continues to run (and no new cover period begins) on the grant of a new nuclear site licence to the same licensee in respect of a site consisting of or including the site in respect of which his existing nuclear site licence is in force.]

[F48 (2C) The current cover period continues to run (and no new cover period begins) in a case where—

(a) the licensee of a licensed site, not having been involved earlier in that cover period in such carriage of nuclear matter as would make the amount referred to in section 16(1)(d) applicable to the licensee, becomes involved in such carriage of nuclear matter as makes the amount referred to in section 16(1)(d) applicable to the licensee, or

(b) the licensee of a licensed site, not having been involved earlier in that cover period in such carriage of nuclear matter as would make the amount referred to in section 16(1)(f) applicable to the licensee, becomes involved in such carriage of nuclear matter as makes the amount referred to in section 16(1)(f) applicable to the licensee.

(2D) The current cover period continues to run (and no new cover period begins) if the amount applicable under section 16(1)(f) to the licensee of a licensed site is increased because one of the periods in section 16B comes to an end.]

[F49 (2E) If—

(a) two or more amounts referred to in section 16(1) are applicable to a licensee, as licensee of a licensed site, in any cover period, and

(b) the licensee, as licensee of that site, has made such provision as subsection (1) requires with respect to the greater or greatest of the corresponding required amounts,

the licensee is to be treated as having made such provision as subsection (1) requires with respect to the other, or each of the other, required amounts.]

(3) Where in the case of any licensed site the provision required by subsection (1) of this section is to be made otherwise than by insurance and, apart from this subsection, provision would also fall to be so made by the same person in respect of two or more other sites, the requirements of that subsection shall be deemed to be satisfied in respect of each of those sites if funds are available to meet such claims as are mentioned in that subsection in respect of all the sites collectively, and those funds would for the time being be sufficient to satisfy the requirements of that subsection in respect of those two of the sites in respect of which those requirements are highest:

Provided that [F50 the appropriate authority] may in any particular case at any time direct either that this subsection shall not apply or that the funds available as aforesaid shall be of such amount higher than that provided for by the foregoing provisions of this subsection, but lower than that necessary to satisfy the requirements of the said subsection (1) in respect of all the sites severally, as may be required by the direction.

(4) Where, by reason of the gravity of any occurrence [F51 or event] which has resulted or may result in claims such as are mentioned in subsection (1) of this section against a licensee as licensee of a particular licensed site, or having regard to any previous occurrences [F52 or events] which have resulted or may result in such claims against the licensee, [F53 the appropriate authority] thinks it proper so to do, [F54 the appropriate authority] shall by notice in writing to the licensee direct that a new cover period for the purposes of the said subsection (1) shall begin in respect of that site on such date not earlier than two months after the date of the service of the notice as may be specified therein.

(5) If at any time while subsection (1) of this section applies in relation to any licensed site the provisions of that subsection are not complied with in respect of that site, the licensee shall be guilty of an offence and be liable—

(a) on summary conviction to a fine not exceeding one hundred pounds, or to imprisonment for a term not exceeding three months, or to both;

(b) on conviction on indictment, to a fine not exceeding five hundred pounds, or to imprisonment for a term not exceeding two years, or to both.

[F55 (6) Subsections (1) to (5) apply to operators of relevant disposal sites as they apply to licensees of licensed sites, but with the following modifications—

(a) a reference to a licensed site is to be read as a reference to a relevant disposal site, except in subsection (3);

(b) the reference in subsection (1) to claims established against a licensee as licensee of that site by virtue of section 7 is to be read as a reference to claims established against an operator of a relevant disposal site as operator of that site by virtue of section 7B;

(c) a reference to the period of a licensee’s responsibility is to be read as a reference to the period indicated by section 7B(1)(f);

(d) the time deemed by virtue of subsection (2) to be included in the period of a licensee’s responsibility is to be read as the time, after the expiration of the period indicated by section 7B(1)(f), during which the operator might incur liability—

(i) by virtue of section 7B, so far as relating to section 7(1B)(b), or

(ii) by virtue of any relevant foreign law made for purposes corresponding to those of section 10;

(e) a reference to section 16(1)(a) is to be read as a reference to section 16(1)(b);

(f) a reference to section 16(1)(c) is to be disregarded;

(g) a reference to section 16(1)(d) is to be read as a reference to section 16(1)(e);

(h) subsection (2B) is to be read as if for the words from “on the grant” to the end there were substituted “if an appropriate permit relating to a relevant disposal site is replaced by another appropriate permit relating to the same site (or that site and a further area), and the permit is given to the same person”;

(i) a reference in subsection (3) to a licensed site is to be read as including a reference to a relevant disposal site.]

[F56 (7) In this section “appropriate authority” means—

(a) in relation to England and Wales and Northern Ireland, the Secretary of State;

(b) in relation to Scotland, the Scottish Ministers.]

Textual Amendments

F33 Word in s. 19 heading 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), 32(12)(a) (with art. 40)

F34 Words in s. 19 heading 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), 32(12)(b) (with art. 40)

F35 Words in s. 19(1) substituted (1.4.2014) by Energy Act 2013 (c. 32), s. 156(1), Sch. 12 para. 22; S.I. 2014/251, art. 4

F36 Words in s. 19(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), 32(2)(a) (with art. 40)

F37 Words in s. 19(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), 32(2)(b) (with art. 40)

F38 Words substituted by Energy Act 1983 (c. 25, SIF 44:1), s. 27(4)

F39 Words in s. 19(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), 32(2)(c) (with art. 40)

F40 Words in s. 19(1)(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), 32(2)(d) (with art. 40)

F41 Words in s. 19(1)(c) 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), 32(2)(e) (with art. 40)

F42 Words in s. 19(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), 32(2)(f) (with art. 40)

F43 S. 19(1A)(1B) substituted for s. 19(1A) (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), 32(3) (with art. 40)

F44 Words substituted (retrospectively) by virtue of Atomic Energy Act 1989 (c. 7, SIF 8), s. 4(1)(a), (2)

F45 Words in s. 19(2) 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), 32(4) (with art. 40)

F46 S. 19(2A) 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), 32(5) (with art. 40)

F47 S. 19(2B) inserted (retrospectively) by Atomic Energy Act 1989 (c. 7, SIF 8), s. 4(1)(b), (2)

F48 S. 19(2C)(2D) 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), 32(6) (with art. 40)

F49 S. 19(2E) 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), 32(7) (with art. 40)

F50 Words in s. 19(3) 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), 32(8) (with art. 40)

F51 Words in s. 19(4) 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), 32(9)(a) (with art. 40)

F52 Words in s. 19(4) 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), 32(9)(b) (with art. 40)

F53 Words in s. 19(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), 32(9)(c) (with art. 40)

F54 Words in s. 19(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), 32(9)(d) (with art. 40)

F55 S. 19(6) 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), 32(10) (with art. 40)

F56 S. 19(7) 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), 32(11) (with art. 40)

Modifications etc. (not altering text)

C2 S. 19 modified by Energy Act 1983 (c. 25, SIF 44:1), s. 27(8)

C3 S. 19(1)(3)(4): transfer of certain functions (S.) (1.7.1999) by S.I. 1999/1750, arts. 1(1), 2, Sch 1 (with art. 7); S.I. 1998/3178, art. 7

20 Furnishing of information relating to licensee’s [F57 or operator’s] cover. U.K.

(1) In the case of each licensed site, the licensee shall give notice in writing to [F58 the appropriate authority] forthwith [F59 upon its appearing to the licensee that claims such as are mentioned in section 19(1) made in respect of any cover period falling within the period of the licensee’s responsibility have reached a notice level.

(1A) For the purposes of subsection (1), claims made in respect of a cover period reach a notice level if the aggregate amount of claims of a particular category so made reaches three-fifths of the required amount appropriate to that category of claim.

(1B) In subsection (1A) references to a category of claim and the required amount are to be construed in accordance with section 19.

(1C) Where] the licensee has given such a notice, no payment by way of settlement of any claim in respect of the cover period in question by agreement between the licensee and the claimant shall be made except after consultation with [F60 the appropriate authority] and in accordance with the terms of any direction which [F60 the appropriate authority] may give to the licensee in writing with respect to any particular claim.

(2) If in the case of any licensed site any cover period falling within the period of the licensee’s responsibility has ended, the licensee shall not later than 31st January in each year send to [F61 the appropriate authority] in writing a statement showing the date when that cover period ended and the following particulars of any claims in respect of that cover period as at the beginning and end respectively of the last preceding calendar year, that is to say—

(a) the aggregate number of claims received;

(b) the aggregate number of claims established; and

(c) the aggregate number and aggregate amount of claims satisfied.

(3) [F62 The appropriate authority] shall as soon as may be lay before each House of Parliament a copy of any notice received by [F63 the appropriate authority] under subsection (1) of this section and a report (in such form as, having regard to section 16 of this Act, [F64 the appropriate authority] may consider appropriate) with respect to any statements received by [F63 the appropriate authority] under subsection (2) of this section.

(4) Any person by whom any funds such as are mentioned in section 19(1) of this Act for the time being fall to be provided shall give to [F65 the appropriate authority] not less than two months notice in writing before ceasing to keep those funds available and, notwithstanding any such notice, so far as those funds relate to nuclear matter for the time being in the course of carriage, shall not so cease while that carriage continues.

[F66 (5) Subsections (1) to (4) apply in relation to the operator of a relevant disposal site with the following modifications—

(a) as if a reference to the licensee of a site with a nuclear site licence were a reference to the operator of a relevant disposal site;

(b) as if a reference to a licensed site were a reference to a relevant disposal site;

(c) as if a reference to the period of a licensee’s responsibility were a reference to the period indicated by section 7B(1)(f).]

[F67 (6) In this section “appropriate authority” means—

(a) in relation to England and Wales and Northern Ireland, the Secretary of State;

(b) in relation to Scotland, the Scottish Ministers.]

Textual Amendments

F57 Words in s. 20 heading 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), 33(8) (with art. 40)

F58 Words in s. 20(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), 33(2)(a) (with art. 40)

F59 S. 20(1A)-(1C) and words substituted for words in s. 20(1) (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), 33(2)(b) (with art. 40)

F60 Words in s. 20(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), 33(2)(c) (with art. 40)

F61 Words in s. 20(2) 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), 33(3) (with art. 40)

F62 Words in s. 20(3) 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), 33(4)(a) (with art. 40)

F63 Words in s. 20(3) 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), 33(4)(b) (with art. 40)

F64 Words in s. 20(3) 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), 33(4)(c) (with art. 40)

F65 Words in s. 20(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), 33(5) (with art. 40)

F66 S. 20(5) 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), 33(6) (with art. 40)

F67 S. 20(6) 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), 33(7) (with art. 40)

Modifications etc. (not altering text)

C4 S. 20: transfer of certain functions (S.) (1.7.1999) by S.I. 1999/1750, arts. 1(1), 2, Sch. 1 (with art. 7); S.I. 1998/3178, art. 3

[F68 20A Power to make arrangements with respect to licensee’s or operator’s cover U.K.

(1) The Secretary of State may make arrangements with any person for the purpose of enabling—

(a) the licensee of a licensed site, or

(b) the operator of a relevant disposal site,

to make the provision required by section 19(1).

(2) The arrangements that may be made under subsection (1) include—

(a) the provision of insurance or reinsurance;

(b) the provision of an indemnity or guarantee.

(3) The power under subsection (1) does not include a power to make grants.

(4) Arrangements made by the Secretary of State under subsection (1) are to be on such terms as the Secretary of State considers appropriate.

(5) The Secretary of State is not to make arrangements under subsection (1) except with the consent of the Treasury.

(6) Sums received by the Secretary of State under arrangements made under subsection (1) are to be paid into the Consolidated Fund.

(7) Sums required by the Secretary of State for fulfilling obligations arising under arrangements made under subsection (1) are to be paid out of money provided by Parliament.

(8) If any sum required by the Secretary of State for fulfilling obligations under arrangements made under subsection (1) is not paid out of money provided by Parliament, it is to be charged on and paid out of the Consolidated Fund.

(9) Where money is paid in reliance on subsection (8), the Secretary of State must as soon as is reasonably practicable lay a report before Parliament specifying the amount paid and the arrangements under which the amount fell to be paid.]

Textual Amendments

F68 S. 20A 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(4), 34(1) (with arts. 34(3), 40)

[F69 20B Statement on arrangements U.K.

(1) As soon as reasonably practicable after making arrangements under section 20A(1), the Secretary of State is to lay before Parliament a statement about the arrangements.

(2) A statement under subsection (1) is to set out—

(a) the licensee or operator for whose benefit the arrangements are made;

(b) the nature of the arrangements;

(c) the amount that may be required to discharge the Secretary of State’s obligations under the arrangements.

(3) While the arrangements continue, the Secretary of State is to make a further statement about the arrangements as soon as reasonably practicable after the end of each report period.

(4) A statement under subsection (3) is to set out—

(a) any changes in the arrangements;

(b) the amount that may be required to discharge the Secretary of State’s obligations under the arrangements.

(5) “Report period”, in relation to arrangements made under section 20A(1), means—

(a) the period of two years beginning with the day on which the statement under subsection (1) was laid before Parliament, and

(b) each successive period of two years.]

Textual Amendments

F69 S. 20B 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(4), 34(2) (with art. 40)

21 Supplementary provisions with respect to cover for compensation in respect of carriage. U.K.

(1) Where, in the case of an occurrence [F70 or event] involving nuclear matter in the course of carriage, a claim in respect of damage to the means of transport being used for that carriage is duly established—

(a) against any person by virtue of section 7, [F71 7B,] 8, 9 or 10 of this Act; or

(b) against a licensee, [F72 an operator of a relevant disposal site,] the Authority or the Crown by virtue of any relevant foreign law made for purposes corresponding to those of the said section 10,

then, without prejudice to any right of the claimant to the satisfaction of that claim, no payment towards its satisfaction shall be made out of funds which are required to be available for the purpose by, or by any relevant foreign law made for purposes corresponding to those of, section 19(1) of this Act, or which have been made available for the purpose under section 18 of this Act or by means of a relevant foreign contribution, such as to prevent the satisfaction out of those funds up to an aggregate amount [F73 which is the equivalent in sterling (on the day, or first day, of that occurrence [F74 or event]) of [F75 80 million euros]] [F76 of all claims falling within subsection (1ZA).

(1ZA) The claims are those which have been or may be duly established against the same person in respect of—

(a) injury, damage or significant impairment of the environment caused by the occurrence mentioned in subsection (1), other than damage to the means of transport in question, or

(b) a grave and imminent threat of injury, damage or significant impairment of the environment caused by the event mentioned in subsection (1), other than a grave and imminent threat of damage to the means of transport in question.]

[F77 ( 1A ) The Secretary of State may with the approval of the Treasury by order increase or further increase the sum expressed in [F78 euros] in subsection (1) of this section; but an order under this subsection shall not have effect in respect of [F79 any occurrence or event happening before (or beginning to happen before)] the order comes into force.]

(2) Where, in the case of an occurrence [F80 or event] involving nuclear matter in the course of carriage, a claim in respect of damage to the means of transport being used for that carriage is duly established against a relevant foreign operator by virtue of section 10 of this Act, but by virtue of section 16(2)(a) thereof that operator is not required to make a payment in satisfaction of the claim, [F81 section 12(1E)] shall not apply to any liability of that operator with respect to the damage in question apart from this Act.

(3) Where any nuclear matter is to be [F82 carried in circumstances such that, while the matter is in the course of carriage, a particular licensee, a particular operator of a relevant disposal site, the Authority, a particular government department or a particular relevant foreign operator], as the case may be (in this and the next following subsection referred to as “the responsible party”) may incur liability by virtue of section 7, [F83 7B,] 8, 9 or 10 of this Act or by virtue of any relevant foregin law made for purposes corresponding to those of the said section 10, the responsible party shall, before the carriage is begun, cause to be delivered to the person who is to carry that matter a document issued by or on behalf of the appropriate person mentioned in the next following subsection (in this subsection referred to as “ the guarantor”) which shall contain such particulars as may be prescribed of the responsible party, of that nuclear matter and carriage, and of the funds available in pursuance of, or of the relevant foreign law made for purposes corresponding to those of, section 18 or 19(1) of this Act to satisfy any claim by virtue of that liability, and the guarantor shall be debarred from disputing in any court any of the particulars stated in that document; and if in any case there is a wilful failure to comply with this subsection, the responsible party (except where that party is the Crown), and also, if the carrier knew or ought to have known the matter carried to be such matter for carriage in such circumstances as aforesaid, the carrier, shall be guilty of an offence and liable on summary conviction to a fine not exceeding [F84 level 3 on the standard scale].

(4) The person by whom or on whose behalf the document referred to in the last foregoing subsection is to be issued shall be—

(a) where the responsible party is a licensee [F85 or an operator of a relevant disposal site], the person by whom there fall to be provided the funds required by section 19(1) of this Act to be available to satisfy any claim in respect of the carriage in question;

(b) where the responsible party is the Authority, [F86 the Secretary of State];

(c) where the responsible party is the Crown, the Minister in charge of the government department concerned [F87 or in relation to any part of the Scottish Administration the Scottish Ministers];

(d) where the responsible party is a relevant foreign operator, the person by whom there fall to be provided the funds required by the relevant foreign law made for purposes corresponding to those of section 18 or 19(1) of this Act to be made available to satisfy any claim in respect of the carriage in question.

[F88 (4A) Subsection (3) of this section shall not apply where the carriage in question is wholly within the territorial limits of the United Kingdom.]

[F89 (4B) Before exercising the function under subsection (1A) or the function under subsection (3) of prescribing particulars in or as regards Scotland, the Secretary of State must consult the Scottish Ministers.]

(5) The requirements of Part VI of the M1 Road Traffic Act 1960 (which relates to compulsory insurance or security against third-party risks of users of motor vehicles) shall not apply in relation to any injury to any person [F90 , or damage to the property of any person,] for which any person is liable by virtue of section 7, [F91 7B,] 8, 9 or 10 of this Act.

Textual Amendments

F70 Words in s. 21(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(5), 35(2)(a) (with art. 40)

F71 Word in s. 21(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(5), 35(2)(b) (with art. 40)

F72 Words in s. 21(1)(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(5), 35(2)(c) (with art. 40)

F73 Words substituted by Energy Act 1983 (c. 25, SIF 44:1), s. 29(1)(4)

F74 Words in s. 21(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(5), 35(2)(d) (with art. 40)

F75 Words in s. 21(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(5), 35(2)(e) (with art. 40)

F76 S. 21(1ZA) and words 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(5), 35(2)(f) (with art. 40)

F77 S. 21(1A) inserted by Energy Act 1983 (c. 25, SIF 44:1), s. 29(2)(4)

F78 Word in s. 21(1A) 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(5), 35(3)(a) (with art. 40)

F79 Words in s. 21(1A) 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(5), 35(3)(b) (with art. 40)

F80 Words in s. 21(2) 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(5), 35(4)(a) (with art. 40)

F81 Words in s. 21(2) 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(5), 35(4)(b) (with art. 40)

F82 Words in s. 21(3)(a) 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(5), 35(5)(a) (with art. 40)

F83 Word in s. 21(3)(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(5), 35(5)(b) (with art. 40)

F84 Words substituted by virtue of (E. W.) Criminal Justice Act 1982 (c. 48, SIF 39:1), ss. 38, 46 and (S.) Criminal Procedure (Scotland) Act 1975 (c. 21, SIF 39:1), ss. 289F, 289G and (N.I.) by S.I. 1984/703 (N.I. 3), arts. 5(2), 9

F85 Words in s. 21(4)(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(5), 35(6)(a) (with art. 40)

F86 Words in s. 21(4)(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(5), 35(6)(b) (with art. 40)

F87 Words in s. 21(4)(c) inserted (1.7.1999) by S.I. 1999/1820, arts. 1(2), 4, Sch. 2 Pt I para. 38(3) (with art. 5); S.I. 1998/3178, art. 3

F88 S. 21(4A) inserted by Energy Act 1983 (c. 25, SIF 44:1), s. 29(3)(4)

F89 S. 21(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(5), 35(7) (with art. 40)

F90 Words inserted by S.I. 1987/2171, reg. 5 and by S.R. (N.I.) 1989/84, reg. 5

F91 Word in s. 21(5) 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(5), 35(8) (with art. 40)

Modifications etc. (not altering text)

C5 S. 21(1A)(3): 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

Marginal Citations

M1 1960 c. 16.