House Approves Bill to Extend Commercial Launch Indemnification Fri. The Commercial Space Transportation Competitiveness Act of 1999, which passed by a voice vote on the House floor on Monday, would extend commercial space transportation indemnification by five years.
Indemnification is an insurance policy for third-party claims.
The bill's supporters in Congress hope that by reducing the chances of costly lawsuits, companies will be encouraged to enter the launch industry. The government's role in indemnification was last extended in 1993. So far, it has never been needed, because no third party has ever sued for damages in a launch. The bill would increase funding over the next three years for the Office of Commercial Space Transportation, housed in the Federal Aviation Agency. The Office of Commercial Space Transportation may seek a contractor to conduct the study, which the bill gives them two years to accomplish.