Paris Convention on Third Party Liability in the field of Nuclear Party

Paris Convention on Third Party Liability in the field of Nuclear Party 

A special international regime for nuclear third party liability is necessary since ordinary common law is not well suited to deal with the particular problems in this field. The drafters of the 1960 Convention on Third Party Liability in the Field of Nuclear Energy (the “Paris Convention” or PC) set out to provide adequate compensation to the public for damage resulting from a nuclear accident and to ensure that the growth of the nuclear industry would not be hindered by bearing an intolerable burden of liability.

The Paris Convention establishes a special legal regime founded on a number of important principles:

1. The nuclear installation operator is exclusively liable for damage resulting from accidents at its installation or during the transport of nuclear substances to and from that installation.
2. This liability is “strict”, as opposed to general tort law which is based on fault or negligence. Under the Paris Convention, a nuclear installation operator is liable, regardless of whether fault can be established.
3. The minimum liability amount of a nuclear installation operator is EUR 700 million. In addition, states with an unlimited liability regime may participate in the liability scheme established by the Paris Convention.
4. Contracting parties to the Paris Convention may fix reduced liability amounts for low-risk nuclear installations and transport activities, with the minimum amounts being EUR 70 million for low-risk installations and EUR 80 million for transport activities.
5. The nuclear installation operator must have financial security equivalent to its liability. For the contracting parties to the Paris Convention with unlimited liability regimes, that security must equal either EUR 700 million or a reduced liability amount, whichever is applicable. Contracting parties to the Paris Convention are also required to ensure the payment of nuclear damage claims where the operator’s financial security is unavailable or insufficient, up to the liability amount specified in the Convention.
6. The right to compensation expires if legal action is not brought within 30 years of the nuclear accident for nuclear damage in respect of loss of life and personal injury, and within 10 years for other nuclear damage. Longer periods are possible under certain circumstances.
7. The Paris Convention must be applied without any discrimination based on nationality, domicile or residence.
8. In general, the courts of the state where the nuclear incident occurred deal with compensation claims.