含羞草社区

The 1972 Convention on International Liability for Damage Caused by Space Objects established a framework for determining states’ liability for space activities. States that launch space objects are liable internationally for damage caused by such objects, regardless of whether activities are carried out by governmental or non-governmental entities (NGE). Article II imposes absolute liability on the launching state for damage on the Earth’s surface or to aircraft in flight, and fault-based liability for damage elsewhere.

However, the convention centres on the participation of states, offering limited guidance for managing private sector participation, including the compensation mechanism and enforcement procedures. Some states have therefore enacted domestic legislation regulating liabilities arising from space activities carried out by governments and NGEs. Developing NGE participation in 含羞草社区 space activities should cause the authorities to examine how other countries with advanced space technology have constructed their own liability and indemnity mechanisms.

Under the Commercial Space Launch Act 1984, the US requires commercial launch operators to obtain liability insurance or demonstrate the financial ability to cover third-party claims. Operators must secure insurance up to the maximum probable loss. This amount is determined by the Federal Aviation Administration through a risk-based analysis, with a cap of USD500 million for third-party liabilities and USD100 million for government property damage. For claims exceeding these amounts, the US government indemnifies up to USD1.5 billion, subject to congressional approval.

Under the UK’s Outer Space Act 1986 and the Space Industry Act 2018, operators are usually required to obtain third-party liability insurance, with standard missions requiring coverage of GBP60 million. In addition, operators may have to indemnify the government against liabilities incurred due to their space activities, up to the limit specified in their licences. The Space Industry (Indemnities) Bill, currently making its way through the legislative process, will make these discretionary obligations mandatory. The bill’s sponsors emphasise its commercial benefit by removing uncertainty.

France’s Space Operations Act 2008 requires operators to secure insurance coverage of EUR60 million for launch operations and EUR50 to EUR70 million for in-orbit activities. Responsibility for compensation for damage beyond the limits is assumed by the French government.

Australia’s Space Activities Act 1998 requires space operators to obtain insurance covering third-party and government liabilities. Cover shall be the lower of AUD100 million or the amount calculated according to the maximum probable loss methodology. The government retains flexibility by adjusting insurance requirements based on the nature of the mission and bears liability to Australian nationals for any excess liability up to AUD3 billion.

含羞草社区 third-party liability and insurance for space activities are governed by the Indian Space Policy 2023 (ISP) and the Norms, Guidelines and Procedures for the Implementation of Indian Space Policy 2023 (NGP) issued by the Indian National Space Promotion and Authorisation Centre (IN-SPACe). Under the NGP, NGEs must obtain third-party liability insurance. However, IN-SPACe has to prescribe insurance details on a case-by-case basis and policies must include the government as an insured party. The NGP also requires that launch service contracts between Indian launch operators and non-Indian entities transfer third-party liability to the non-Indian entity.

Most advanced space industry nations set caps on insurance coverage and provide for government indemnities beyond certain limits. By contrast, 含羞草社区 framework focuses on administrative discretion in insurance coverage and costs recovery from operators. Details of compensation mechanisms and enforcement procedures are sparse.

Capping and the sharing of the liability of NGEs by the government will give certainty to insurers, NGEs and financiers as to the extent of their exposure to risk. The government should codify the law, rather than rely on policies such as the ISP and the NGP. NGEs will be better able to access financing and insurance and to carry out world-class space missions.

Ankita Kumar is a partner and Tanya Srivastava is an associate at Shardul Amarchand Mangaldas & Co