Liabilities, indemnities and insurance

I335Power or duty of Secretary of State to indemnify

1

Subsections (2) and (3) apply where—

a

injury or damage is sustained by a person as a result of spaceflight activities carried out by the holder of an operator licence (“the licensee”),

I1b

that person is not an individual of a prescribed description taking part in, or otherwise engaged in connection with, those activities, and

c

the licensee is liable to that or some other person (“the claimant”) in respect of the injury or damage.

2

If the liability amount exceeds the insurance amount, the Secretary of State may indemnify the licensee in respect of the difference.

In this subsection—

a

the liability amount” means the amount of the licensee's liability (as limited by or under regulations made under section 34(5), if it is so limited);

b

the insurance amount” means the amount for which the licensee is insured in respect of that liability (or, if a condition imposed by virtue of paragraph 35(a) of Schedule 1 requires the licensee to be insured for a greater amount in respect of it, that greater amount).

3

The Secretary of State must indemnify the claimant in respect of any difference between—

a

the amount of the licensee's liability as limited by or under regulations made under section 34(5), and

b

what the amount of that liability would be but for the regulations.

4

The Secretary of State is entitled—

a

to participate in legal proceedings concerning a liability in relation to which a power under subsection (2) or duty under subsection (3) might arise, or

b

to direct the conduct of the case of a person alleged to be liable in such proceedings.

I25

Regulations may—

a

prescribe limits on the amounts that the Secretary of State may or must pay under subsection (2) or (3);

b

prescribe cases or circumstances in which the Secretary of State's power under subsection (2) or duty under subsection (3) does not arise;

c

make provision supplementing subsection (4).