51 U.S.C. § 20138 — Insurance and indemnification
submitted 16 years ago by Pub. L. 111-314 to r/title-51-NATIONAL-AND-COMMERCIAL-SPACE-PROGRAMS · 495 words · no verdicts yet
The Administration may insure space-vehicle users against certain third-party claims for death, injury, or property damage. An agreement may also provide United States indemnification for claims not covered by the user's insurance, and that indemnification may be limited to claims resulting from something other than the user's actual negligence or willful misconduct. Payments require certification that the amount is just and reasonable.
(a) Definitions. (1) Space vehicle. The term "space vehicle" means an object intended for launch, launched, or assembled in outer space, including the space shuttle and other components of a space transportation system, together with related equipment, devices, components, and parts. (2) Third party. The term "third party" means any person who may bring a claim against a user for death, bodily injury, or loss of or damage to property. (3) User. The term "user" includes anyone who enters an agreement with the Administration* to use all or part of a space vehicle, who owns or provides property to be flown on a space vehicle, or who employs a person to be flown on a space vehicle.
(b) Authorization. The Administration may, on terms and to the extent it considers appropriate, provide liability insurance for a space-vehicle user to compensate all or part of third-party claims for death, bodily injury, or loss of or damage to property resulting from activities connected with launching, operating, or recovering the space vehicle. The Administration may use available appropriations to obtain this insurance, but users must reimburse those appropriations to the maximum extent practicable under reimbursement policies established under section 20113.
(c) Indemnification. Under regulations the Administrator* prescribes that conform to this section and take account of the availability, cost, and terms of liability insurance, an agreement between the Administration and a space-vehicle user may provide that the United States will indemnify the user against third-party claims, including reasonable litigation or settlement expenses, for death, bodily injury, or loss of or damage to property resulting from activities connected with launching, operating, or recovering the space vehicle. The indemnification applies only to the extent that the user's liability insurance does not compensate the claims. The indemnification may be limited to claims resulting from something other than the user's actual negligence or willful misconduct.
(d) Terms of Indemnification Agreement. An agreement under subsection (c) that provides indemnification must also provide for (1) notice to the United States of any claim or suit against the user for death, bodily injury, or loss of or damage to property; and (2) control of, or assistance in defending, that suit or claim by the United States, if the United States chooses.
(e) Certification of Just and Reasonable Amount. No payment may be made under subsection (c) unless the Administrator or the Administrator's designee certifies that the amount is just and reasonable.
(f) Payments. After the Administrator approves, payments under subsection (c) may be made, at the Administrator's choice, from unobligated funds available for research and development or from funds appropriated for those payments.
In this section:
The term “space vehicle” means an object intended for launch, launched, or assembled in outer space, including the space shuttle and other components of a space transportation system, together with related equipment, devices, components, and parts.
The term “third party” means any person who may institute a claim against a user for death, bodily injury, or loss of or damage to property.
The term “user” includes anyone who enters into an agreement with the Administration* for use of all or a portion of a space vehicle, who owns or provides property to be flown on a space vehicle, or who employs a person to be flown on a space vehicle.
The Administration is authorized on such terms and to the extent it may deem appropriate to provide liability insurance for any user of a space vehicle to compensate all or a portion of claims by third parties for death, bodily injury, or loss of or damage to property resulting from activities carried on in connection with the launch, operations, or recovery of the space vehicle. Appropriations available to the Administration may be used to acquire such insurance, but such appropriations shall be reimbursed to the maximum extent practicable by the users under reimbursement policies established pursuant to section 20113 of this title.
Under such regulations in conformity with this section as the Administrator* shall prescribe taking into account the availability, cost, and terms of liability insurance, any agreement between the Administration and a user of a space vehicle may provide that the United States will indemnify the user against claims (including reasonable expenses of litigation or settlement) by third parties for death, bodily injury, or loss of or damage to property resulting from activities carried on in connection with the launch, operations, or recovery of the space vehicle, but only to the extent that such claims are not compensated by liability insurance of the user. Such indemnification may be limited to claims resulting from other than the actual negligence or willful misconduct of the user.
An agreement made under subsection (c) that provides indemnification must also provide for—
notice to the United States of any claim or suit against the user for the death, bodily injury, or loss of or damage to the property; and
control of or assistance in the defense by the United States, at its election, of that suit or claim.
No payment may be made under subsection (c) unless the Administrator or the Administrator’s designee certifies that the amount is just and reasonable.
Upon the approval by the Administrator, payments under subsection (c) may be made, at the Administrator’s election, either from funds available for research and development not otherwise obligated or from funds appropriated for such payments.
Source credit: (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3344.)
- 2010Enacted · Pub. L. 111-314 · 124 Stat. 3344
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-314 on 2010-12-18.
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