This paper deals with the third party liability of the nuclear power generation industry is discussed. It has several purposes. One is to clarify the distinctive features of nuclear liability as compared with traditional liability in tort. Particular interest is devoted to one such feature, namely the express liability limitation from which the nuclear power generation industry benefits. The causes and implications of this feature are discussed. One important implication of the current order is that the top risk of the nuclear power generation industry is explicitly or implicitly transferred to governments. This risk transfer can be regarded as a subsidy to the nuclear power generation industry. Subsidizations counteract efficiency. Therefore, the possibilities of neutralizing or abolishing the subsidy are explored.