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Growing problems from Japan’s stricken power plants

Japan’s nuclear fallout from the Fukushima Dai-ichi plants continues to grow, with estimates of compensation continuing to rise.

The first deaths have been reported at the Tokyo Electric Power’s stricken nuclear power station in Fukushima Prefecture.

The company did not expand on the cause of their deaths, other than to say the victims were found in the turbine building of the number Four reactor.

Workers are still spraying seawater on the units’ spent nuclear fuel pool, which have been heating up and threatening to increase levels of exposed radiation.

The company is facing problems of radioactive water leaking from the number one and two reactors.

The looming problem for Tokyo Electric is compensation claims if the plant’s problems can’t be fixed. Merrill Lynch analysts say compensation claims of up to ¥11 trillion ($128 billion) could arise if the plant can’t be fixed within two years.

At the end of December the company had reserves of ¥677 billion ($7.7 billion) and it has subsequently received an emergency loan of ¥1.9 trillion ($1.7 billion) from its main banks.

Tokyo Power’s nuclear insurance does not cover property damage or business interruption for the plants.

The company is also excluded under 1961 legislation from being responsible for any third-party damage.

The Japanese Earthquake Reinsurance Company is paying a percentage of personal property and contents claims, which will complicate claims against Tokyo Electric. But this cover does not include commercial risk.