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Title 46 — ShippingRelease 119-73not60

§53904 Liability Insurance for Persons Involved in War or Defense Efforts

Title 46 › Subtitle Subtitle V— Merchant Marine › Part C— Financial Assistance Programs › Chapter 539— WAR RISK INSURANCE › § 53904

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Transportation can provide federal insurance to cover legal responsibility for people who give services or facilities to a ship. The Secretary may do this only if it is needed for a war or for national defense and private insurance companies allowed to do business in a U.S. state cannot sell similar coverage at reasonable rates or on reasonable terms. The insurance cannot be used for employer liability or workers’ compensation for employees.

Full Legal Text

Title 46, §53904

Shipping — Source: USLM XML via OLRC

(a)The Secretary of Transportation may provide insurance under this chapter against legal liability that a person may incur in providing services or facilities for a vessel if, in the opinion of the Secretary, the insurance—
(1)is required in prosecuting a war or for national defense; and
(2)cannot be obtained at reasonable rates or on reasonable terms and conditions from approved companies authorized to do insurance business in a State of the United States.
(b)Employer liability insurance and worker compensation insurance against legal liability to employees may not be provided under this section.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5390446 App.:1286.June 29, 1936, ch. 858, title XII, § 1206, as added Sept. 7, 1950, ch. 906, 64 Stat. 774; Aug. 3, 1956, ch. 929, § 5, 70 Stat. 986. In subsection (a), the words “a vessel” are substituted for “any American- or foreign-flag vessel, public or private” to eliminate unnecessary words.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53904

Title 46 — Shipping

Last Updated

Apr 5, 2026

Release point: 119-73not60