Legal framework
The third-party liability insurance is based on international conventions and underlying national laws. In Switzerland the relevant law is Kernenergiehaftpflichtgesetz (Federal Nuclear Energy Liability Act) or KHG. It comprises the principles of the Paris Convention on third-party liability in relation to nuclear energy. The Convention not only guarantees victims of a nuclear accident a minimum overall compensation amount, but is also protecting the interests of victims. In addition, under the Convention it is compulsory for the nuclear power plant operator to take out insurance or other financial protection against liability. In Switzerland this sum currently amounts to EUR 1.2 billion. Due to the importance placed on protecting victims, the operator is not granted a licence to operate unless insurance or another form of financial protection has been taken out.