A European Pool fpr Industrial Accidents—A Proposal Based on the Restated Diversification Theorem

Strict liabilities prevails at major accidents. According to the Polluter Pays Principle,l it is the liable party who pays for any damage. The accidents may be very large, however, compared to the assets of the liable plant owner. The liable party may, therefore, simply go bankrupt and leave the scene. To secure some capacity insurance and/or industrial guarantees may be required. Nonetheless, the coverage remains insufficient to compensate the victims, and to create the incentive to prvent accidents efficiently. G Skogh(2008) suggested the establishment of a European Nuclear Accident Pool to solve the probelm considering the nuclear industry...