PRIA, Government Policy, Made Personal

Summary

The Administration can buy liability insurance for people who use a space vehicle. That insurance can pay all or part of claims by other people for death, injury, or property damage that come from launching, operating, or recovering the vehicle. The agency can use its appropriated money to buy the insurance, but users should repay the agency as much as possible under reimbursement rules in section 20113. A space vehicle is an object made for launch or used in space, with its parts and related gear. A third party is anyone who can sue for death, injury, or property loss. A user is someone who makes an agreement with the Administration to use a space vehicle, owns cargo flown on it, or sends a person on it. The United States can also agree to pay claims that the user’s insurance does not cover, except for claims caused by the user’s own negligence or willful wrongdoing. The user must tell the United States about any claim or lawsuit, and the United States can run or help the defense. The Administrator must approve and certify that any payment is fair. Payments may come from available research and development funds or other appropriated funds.

Title 51, §20138

National and Commercial Space Programs, Source: USLM XML via OLRC

(a)Definitions.—

In this section: (1) Space vehicle.—

(2)Third party.—

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.

(3)User.—

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.

(b)Authorization.—

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.

(c)Indemnification.—

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.

(d)Terms of Indemnification Agreement.—

An agreement made under subsection (c) that provides indemnification must also provide for— (1)

(2)control of or assistance in the defense by the United States, at its election, of that suit or claim.

(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.—

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.

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 2013842 U.S.C. 2458b.Pub. L. 85–568, title III, § 308, as added Pub. L. 96–48, § 6(b)(2), Aug. 8, 1979, 93 Stat. 348.

§20138 Insurance and Indemnification

Summary

Title 51, §20138

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata