46 U.S.C. § 53903: Insurable interests

Summary

The Secretary of Transportation can provide insurance and reinsurance for certain ships, their cargo, and related losses. That includes American vessels (even ones being built); some foreign vessels owned by U.S. citizens or working in U.S. water trade or doing water services the Secretary believes help national defense or the economy; cargo on those vessels (including mail), cargo owned by U.S. citizens or residents, cargo imported/exported or sold under contracts that put war-loss risk on a U.S. person, and cargo moved between U.S. ports; money paid out for ship expenses; passengers’ and crew members’ personal effects; death, injury, or enemy detention after capture of people on such vessels; and usual statutory or contractual liabilities of the vessel or its owner/charterer. When deciding about a foreign ship, the Secretary must look at its type, how it is used, and how the owner or charterer manages it. Coverage for risks tied to people on board (the personal effects, death/injury/detention, and liabilities) may include non-war risks if the Secretary thinks that is appropriate.

Title 46, §53903

Shipping, Source: USLM XML via OLRC

(a)In General.—

The Secretary of Transportation may provide insurance and reinsurance under this chapter for— (1)

(2)a foreign vessel—

(A)owned by a citizen of the United States; or

(B)engaged in transportation in the waterborne commerce of the United States or in such other transportation by water or such other services as the Secretary considers to be in the interest of the national defense or national economy of the United States, when so engaged;

(3)cargo—

(A)shipped or to be shipped on a vessel insurable under this section, including by express or registered mail;

(B)owned by a citizen or resident of the United States;

(C)imported to or exported from the United States, or sold or purchased by a citizen or resident of the United States, under a contract of sale or purchase the terms of which provide that the risk of loss by war risks or the obligation to provide insurance against war risks is on a citizen or resident of the United States; or

(D)shipped between ports in the United States;

(4)disbursements, including advances to masters and general average disbursements, and freight and passage money of a vessel insurable under this section;

(5)personal effects of an individual on a vessel insurable under this section;

(6)loss of life, injury, or detention by an enemy of the United States after capture, with respect to an individual on a vessel insurable under this section; and

(7)statutory or contractual obligations or other liabilities of a vessel insurable under this section or of the owner or charterer of such a vessel, of a nature customarily covered by insurance.

(b)Considerations for Foreign Vessels.—

In determining whether to provide insurance or reinsurance for a foreign vessel, the Secretary shall consider the characteristics, employment, and general management of the vessel by the owner or charterer.

(c)Non-War Risks.—

Insurance of a risk under subsection (a)(5)–(7), insofar as it involves a liability related to an individual on the vessel, may include risks other than war risks to the extent the Secretary considers advisable.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53903(a)46 App.:1283(a) (1st sentence), (b) (1st sentence), (c)–(f).June 29, 1936, ch. 858, title XII, § 1203(a) (1st, 2d sentences), (b) (1st sentence), (c)–(f), as added Sept. 7, 1950, ch. 906, 64 Stat. 773, 774; Pub. L. 94–523, §§ 1–3, Oct. 17, 1976, 90 Stat. 2474. 53903(b)46 App.:1283(a) (2d sentence). 53903(c)46 App.:1284.June 29, 1936, ch. 858, title XII, § 1204, as added Sept. 7, 1950, ch. 906, 64 Stat. 774. In subsections (a)(2) and (b), the words “foreign vessel” are substituted for “foreign-flag vessels” because of the definition of “foreign vessel” in chapter 1 of the revised title. In paragraph (3), references to the territories and possessions of the United States are omitted as unnecessary because of the definition of “United States” in chapter 1 of the revised title. In paragraph (5), the words “individual on a vessel insurable under this section” are substituted for “masters, officers, and crews of such vessels, and of other persons transported on such vessels” to eliminate unnecessary words. In paragraph (6), the words “individual on a vessel insurable under this section” are substituted for “Masters, officers, members of the crews of such vessels and other persons employed or transported thereon” to eliminate unnecessary words.

§53903 Insurable Interests

Summary

Title 46, §53903

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata