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As opposed to the Paris convention, which did not allow the cap on the liability of the operator to exceed a certain threshold, the Vienna convention allowed countries to choose this cap, but continued to indemnify suppliers.
Instead the document explains that there will be a "cap on the liability of the operator of the nuclear power station which would apply in a worst-case scenario".
Several countries have laws that deal with nuclear accidents on the basis of two principles: first, the supplier is indemnified from any legal action; second, the economic liability of the operator is capped at a small figure.
The main raison d'être of the convention is said to be its scheme of compulsory insurance; in return, the liability of the operator is limited according to the weight of the aircraft, unless the damage is caused by a deliberate act of the operator, his servants, or agents, done with intent to cause damage.
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Many oil experts say that a settlement was made more likely by recent court rulings that limited the liability of Transocean, the operator of the rig that exploded, and Halliburton, the company that cemented the deepwater well that blew out and caused the spill.
The relevant U.S. law is instead the Price-Anderson Act of 1957, which channels liability to the operators of a plant and currently caps it at about $12 billion; it does not curtail Americans' right to sue.
Policies are written to cover liability of the owner or operator for bodily injury to passengers or to persons other than passengers and for property damage.
The coastguard is expected to convene a special inquiry board today to investigate the cause of the sinking and to determine any liability of the crew and operator.
Existing international conventions place liability solely with the operator of a nuclear reactor while immunizing suppliers.
Governments favour nuclear power by limiting the liability of its operators.
In August, the civilian nuclear deal, a symbol of the two countries' new closeness, came under strain when the Indian Parliament passed a bill that would increase the potential liability of nuclear plant operators.
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