CYIL vol. 15 (2024)

SEYEDEH KIANA BANIKAMALI lawmakers. Iran’s current laws lack specific provisions for setting such caps, particularly regarding nuclear damages. The concern is that if a maximum liability ceiling is anticipated in the civil liability law regarding damages to national assets, it may be subject to review by the Guardian Council of the Constitution. While Islamic Penal Law, on the title of “Diya” 51 (compensation for injury), and Iranian Maritime Law provide some liability limitations, disputes arise regarding claims exceeding the established “Diya”. 52 The determination of this cap necessitates legislative attention. Insufficient Insurance or Financial Security for Nuclear Damage Liability Another law requiring revision and attention is the Iranian insurance law. The operator is required to maintain insurance or financial security covering their liability for nuclear damage as specified by the Installation State. 53 No unified international legal regime exists to ensure nuclear damage exists, even among nations with established atomic programs. 54 T he imperative for nuclear facility operators to procure insurance or provide financial backing for their liabilities stems from the non-negotiable provisions of the conventions above. Consequently, governments aspiring to accede to these conventions are precluded from exempting themselves by imposing reservations that exclude operators’ liability insurance or by enacting and enforcing laws or regulations that contradict such obligations. 55 Another aspect to consider is situations where an operator lacks insurance or financial security to cover liabilities in the event of a nuclear incident, leading to incurred damages. The Vienna Convention addresses this by stipulating that if insurance or financial security is inadequate, the Installation State will provide necessary funds for compensation. However, the Convention doesn’t mandate states to maintain insurance or financial protection for operator liability. 56 In Iran, the government assumes responsibility for nuclear facilities, and there is currently no insurance available for nuclear activities. Due to the inadequacies of the insurance system in Iran, in the event of an accident, the government itself must cover the damages. Given that compensating for damages caused by nuclear incidents can impose a heavy financial burden on the government, ensuring the implementation of this principle and providing insurance coverage for nuclear liability presents an opportunity for Iran to consider acceding to the Vienna Convention. 57 Nevertheless, there is no apparent legal or jurisprudential prohibition against implementing and enforcing laws and regulations mandating insurance for nuclear 51 The Diya amount is exactly as determined in religious regulations, and its extent is detailed at the beginning of each year by the head of the judiciary, precisely based on the opinion of the leadership. See the Islamic Penal Code, Article 549. 52 MOHAMMAD HOSSEINY TARGHI M. and RASHIDI H. (n 29). 53 See the Vienna Convention, Article VII(1). 54 BELLAMY, J. ‘Civil Liability for Nuclear Damage in Countries Developing Nuclear New Build Programmes’ (2019) 12 The Journal of World Energy Law & Business 3 accessed 8 June 2024. 55 PISHROBAT, S. R. ‘Status of Insurance of Liability of Operator of Nuclear Installation in International Conventions on Nuclear Civil Liability and Legal Order of Iran’ (2018) 38 Journal of Nuclear Science, Engineering and Technology 28 accessed 8 June 2024. 56 See the Vienna Convention, Article VII(2). 57 SHAMSHIRI, A. and FARAHANI, F. A. (n 3) 72.

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