This article deals with nuclear terrorism and the manner in which nuclear operators can insure themselves against it, based on the international nuclear liability conventions. It concludes that terrorism is currently not covered under the treaty exoneration provisions on ‘war-like events’ based on an analysis of the concept of ‘terrorism’ and travaux preparatoires. Consequently operators remain liable for nuclear damage resulting from terrorist acts, for which mandatory insurance is applicable. Since the nuclear insurance industry is looking at excluding such insurance coverage from its policies in 2003, this article aims to suggest alternative means for insurance, in order to ensure adequate compensation for innocent victims.
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