UPDATE 1-Tepco secures insurer for Fukushima Daiichi facility - Nikkei

Thu Dec 8, 2011 1:32pm EST

Dec 9 (Reuters) - Tokyo Electric Power Co said it plans to sign up Swiss-affiliated Ace Insurance to provide accident cover, starting next month for its decimated nuclear power plant in Fukushima Prefecture, Japanese business daily the Nikkei said.

A group of 23 casualty insurers currently underwrite coverage for accidents stemming from human error. But the insurance pool has refused to renew the expiring policy for the Fukushima Daiichi facility, the daily said.

Tepco will pay premium of about 20 billion yen ($258.03 million) for the five-year policy, a 10-fold increase from the several hundred million yen a year it pays at present, Nikkei said.

Tepco's future as an independent firm has been in doubt since an earthquake and tsunami wrecked the plant in March, triggering the world's worst nuclear crisis in 25 years and leaving it with huge compensation payments and clean-up costs. ($1 = 77.5100 Japanese yen) (Reporting by Durba Ghosh in Bangalore; Editing by Supriya Kurane)

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