Damaged nuke plant may lose insurance

TOKYO, Sept. 17 (UPI) -- Japanese insurers are considering canceling coverage of the Fukushima No. 1 nuclear plant, which was heavily damaged by this year's earthquake and tsunami.

The insurance contract with Tokyo Electric Power Co. comes up for renewal in January, the Asahi Shimbun reported. If the plant's insurance is canceled, it would technically be operating illegally.

"The insurance contracts are targeted at nuclear reactors that are operating normally and are not leaking out radioactive substances," one industry executive said. "It will be difficult to renew the contract under the current circumstances."

Japan's Law on Compensation for Nuclear Damage provides for government payment from nuclear disasters caused by earthquakes, tsunamis and other natural forces. The Japan Atomic Energy Insurance Pool, which includes 23 major insurers, provides coverage for other nuclear accidents.

Tepco plans to decommission four of the six reactors at Fukushima No. 1 and has announced no decision on the other two. The decommissioning is likely to take decades.