Report: Japan may set up state-backed nuclear insurer

[jpak]

http://www.monstersandcritics.com/news/asiapacific/news/article_1633125.php/Report-Japan-may-set-up-state-backed-nuclear-insurer

The Japanese government is considering creating a state-backed nuclear insurer to deal with compensation for the accident at a damaged nuclear station and recoup the payouts from dividends on capital pumped into plant operator Tokyo Electric Power Co (TEPCO), a news report said Friday.

The new entity would also provide insurance against future nuclear disasters, charging annual premiums from TEPCO and the other electric companies with nuclear reactors, the Nikkei business daily reported.

The funds might be used to cover the cost of decommissioning reactors, the Nikkei said.

The entity would inject TEPCO with government-backed capital, receiving preferred stock in exchange in much the same way as the Deposit Insurance Corp of Japan helps struggling banks, the daily said.

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[OmahaBlueDog]

1. Translation: The reinsurance market is walking away from the remaining plants

The US had to create a mechanisms like that after 9-11. Businesses could not buy Workers Compensation, for example, if they were in the then-Sears Tower. Reinsurers wouldn't take the policies.

[Nihil]

2. Sounds about right. (n/t)

[madokie]

3. Here we let the rate payer pick up the tab

Which in effect is what they're proposing as the cost will only be passed on down to the serfs. Shut the sunsabitch'n dangerous to all life fissile power plants down is what they should do, US TOO, and get to work on alternates, not necessarily in that order though :-)
With our manufacturing base gone I'm not so sure we can't start shutting down the older and more dangerous ones now. There is alternates to this boondoggle called nuclear power if you want to know what I think.