Space Industry Act 2018

38 Insurance

(1) Regulations may require holders of licences under this Act and other persons engaged in spaceflight activities to be insured in respect of prescribed risks and liabilities.

The regulations may prescribe—

(a) matters to be covered by the insurance;

(b) matters that may, or may not, be excluded from the cover required;

(c) the amounts of cover required.

(2) Regulations made with the consent of the Treasury may provide for insurance or reinsurance to be made available by the Secretary of State for the purpose of enabling persons to comply with—

(a) any requirements imposed on them by regulations under subsection (1);

(b) any requirements about insurance imposed by licence conditions.

(3) The Secretary of State may make arrangements with any person, on whatever terms the Secretary of State thinks appropriate, for the purpose mentioned in subsection (2).

(4) Arrangements under which insurance or reinsurance is made available by the Secretary of State may not be made under subsection (3), but only in accordance with regulations under subsection (2).

(5) Arrangements under subsection (3) may include—

(a) the provision of an indemnity or guarantee;

(b) the making of grants.

(6) The Secretary of State must lay before Parliament a statement about arrangements made under subsection (3), as soon as reasonably practicable after they are made, setting out—

(a) the persons for whose benefit the arrangements are made;

(b) the nature of the arrangements;

(c) the amount that may be required to discharge the Secretary of State’s obligations under the arrangements.

(7) While arrangements under subsection (3) continue, the Secretary of State must make a further statement about the arrangements, as soon as reasonably practicable after the end of each report period, setting out—

(a) any changes in the arrangements;

(b) the amount that may be required to discharge the Secretary of State’s obligations under the arrangements.

The “report period” is the period of two years beginning with the day on which the statement under subsection (6) is laid before Parliament, and each subsequent period of two years.

(8) A reference in this Act to insurance includes a reference to a security that satisfies prescribed conditions.

References in this Act to being insured, and to reinsurance, are to be read accordingly.

(9) Sums received by the Secretary of State by virtue of subsection (2), or under arrangements made under subsection (3), are to be paid into the Consolidated Fund.

(10) Sums required by the Secretary of State for fulfilling obligations by virtue of subsection (2), or under arrangements made under subsection (3), are to be paid out of money provided by Parliament.