Chennai, Feb 23 (IANS): The Insurance Regulatory and Development Authority of India (IRDAI) has approved setting up of the nuclear liability pool, said a top official.

"We have recently given in-principle approval for setting up of the nuclear liability pool," IRDAI chairman T.S.Vijayan told IANS.

The nuclear liability pool will be of Rs.1,500 crore to meet the claims arising out of any accident in an atomic power station in India.

According to a senior industry official, the General Insurance Corporation of India (GIC), the national reinsurer and four government owned general insurance companies have a total capacity of Rs.750 crore.

"Some private non-life insurers too have showed interest. But the total capacity of the private players will not be more than Rs.50 crore," the official, who spoke on the condition of anonymity, told IANS.

He said to meet the shortfall in the nuclear liability pool, the government may have to chip in, failing which the pool will of around Rs.800 crore if one takes into account the private sector's capacity.