German Nuclear Reactor Insurance Association
Despite the slight probability of losses resulting from an insured event in the nuclear industry, in the event of an insured event does occur the possibilities for damages are considerable. As such a single insurance company is unable to bear such risk alone. Under German law, the transfer of a nuclear risk of an insurer to a reinsurer is prohibited. In 1998 the Atomic Energy Act established the maximum insurance liability of nuclear insurer at about €2.5 billion; for damages above that cap the Federal Government is liable  according to § 34 of the Atomic Energy Act. If the total damage exceeds the stipulated maximum sum of €2.55 billion, the German Federal Government pays the German Nuclear Reactor Insurance Association for the excess losses. The insurance payments include the cost of evacuating people.