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Tokyo nuclear facility has insurance through Chaucer syndicate

Posted On: Mar. 14, 2011 12:00 AM CST

LONDON—Lloyd’s of London insurer Chaucer Holdings P.L.C. said Monday that its nuclear syndicate 1176 is one of a panel of insurers that provides coverage to Tokyo Electric Power Co., the operator of two of the three nuclear sites in the area affected by Friday’s earthquake and tsunami in Japan.

Chaucer said the syndicate did not expect large losses stemming from damage caused from the earthquake.

It said that for two of the plants affected, Fukushima Dai-ichi and Fukushima Daini, it did not provide coverage for property damage or business interruption coverage.

For the third plant in the area, Onagawa, which is owned by Tohuku Electric Power Co., Chaucer does provide coverage for property damage, but the perils of earthquake and tsunami specifically are excluded from that coverage, it said.

Under the Japanese Nuclear Act 1961, nuclear operators are not liable for any damage arising from a “grave natural disaster of an exceptional nature,” Chaucer added.

The Fukushima Dai-ichi plant suffered a second explosion Monday. A previous explosion, which blew off the roof of the plant, resulted in some radiation leaks.

Chaucer said it would provide estimates of its other exposures to the earthquake and tsunami in due course.

Lloyd’s on Friday said in a statement that it was too early to tell the extent of the market’s losses from the earthquake and tsunami.

Chaucer added that it is still in talks with prospective buyers and would provide an update on those discussions “in due course, if appropriate.”