As regards the safety aspects with the foreseen arrangement, in my mind you should at first consider that in case of a dielectric breakdown, the electrostatic energy of the cable is suddenly released, may be, with a power arc in air. More over a breakdown of the longitudinal insulation of the series inductance implies the application of the test voltge at the 11kV side of the transformer (and associated measurement devices, if any) with a transfer of voltage to the LV side also.