An Act to amend the Civil Aeronautics Act of 1938, as amended, and for other purposes
PL 82-47 (S.435), enacted 06/14/1951

65 STAT.] 
PUBLIC LAW 47—JUNE 14, 1951 
65 
and that receipts from such reimbursements shall be deposited as 
refunds to the appropriation from which paid, in the manner provided 
for in section 524, Tariff Act of 1930, as amended (U. S. C, 1946 
edition, title 19, sec. 1524). 
Approved June 12, 1951. 
46 Stat. 741. 
Public Law 47 
CHAPTER 123 
AN ACT 
To amend IBe Civil Aeronautics Act of 1938, as amended, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenihled, That the Civil 
Aeronautics Act of 1938, as amended (U. S. C, title 49, sees. 401-581), 
is hereby amended by adding at the end thereof the following new title: 
"TITLE XIII—WAR RISK INSURANCE 
"SEC. 1301. As used in this title— 
"(a) The term 'American aircraft' means 'civil aircraft of the 
United States' as defined in section 1 (15) of this Act, and any aircraft 
owned or chartered by or made available to the United States, or any 
department or agency thereof, or the government of any State, Terri-
tory, or possession of the United States, or any political subdivision 
thereof, or the District of Columbia. 
"(b) The term 'war risks' includes, to such extent as the Secretary 
may determine, all or any part of those risks which are described in 
'free of capture and seizure' clauses, or analogous clauses. 
"(c) The term 'Secretary' means the Secretary of Commerce. 
"(d) The terms 'insurance company' and 'insurance carrier' in sec-
tions 1305 (a) and (b) and in section 1307 (d) shall include any 
mutual or stock insurance company, reciprocal insurance association, 
and any group or association authorized to do an aviation insurance 
business in any state of the United States. 
"SEC. 1302. (a) The Secretary, with the approval of the President, 
and after such consultation with interested agencies of the Government 
as the President may require, may provide insurance and reinsurance 
against loss or damage arising out of war risks in the manner and to the 
extent provided in this title, whenever it is determined by the Secre-
tary that such insurance adequate for the needs of the air commerce of 
the United States cannot be obtained on reasonable terms and condi-
tions from companies authorized to do an insurance business in a State 
of the United States: Provided, 
That no insurance shall be issued 
under this title to cover war risks on persons or property engaged or 
transported exclusively in air commerce within the several States of 
the United States and the District of Columbia. 
"(b) Any insurance or reinsurance issued under any of the pro-
visions of this title shall be based, insofar as practicable, upon con-
sideration of the risk involved. 
"SEC. 1303. The Secretary may provide the insurance and reinsur-
ance, authorized by section 1302 with respect to the following persons, 
property, or interest: 
"(a) American aircraft, and those foreign-flag aircraft engaged 
in tiircraft operations deemed by the Secretary to be in the interest 
of the national defense or the national economy of the United States, 
when so engaged. 
June 14,1961 
[S. 435] 
Civil Aeronautics 
Act, 1038, amend-
ments. 
52 Stat. 977. 
Definitions. 
49 U. S. C. S 401. 
Post, pp. 66, 67. 
Authority to pro-
vide insurance. 
Restriction. 
Aircraft. 
66 
PUBLIC LAW 47—JUNE 14, 1951 
[65 
STAT. 
Cargoes. 
Personal eSects. 
Loss of life, etc. 
Liabilities of air-
craft, etc. 
Government de-
partments or agencies. 
5 U. S. C. §5134, 
134a. 
Insurance without 
premium. 
Indemnity agree-
ment. 
Reinsurance of in-
surance companies. 
Rates. 
Revolving fund. 
Deposits and pay-
ments. 
"(b) Cargoes transported or to be transported on any such aircraft, 
including shipments by express or registered mail; air cargoes owned 
by citizens or residents of the United States, its Territories, or pos-
sessions ; air cargoes imported to, or exported from, the United States, 
its Territories, or possessions and air cargoes sold or purchased by 
citizens or residents of the United States, its Territories, or posses-
sions, under contracts of sale or purchase by the terms of which the 
risk of loss by war risks or the obligation to provide insurance against 
such risks is assumed by or falls upon a citizen or resident of the 
United States, its Territories, or possessions; air cargoes transported 
between any point in the United States and any point in a Territory 
or possession of the United States, between any point in any such 
Territory or possession and any point in any other such Territory or 
possession, or between any point in any such Territory or possession 
and any other point in the same Territory or possession. 
"(c) The personal effects and baggage of the captains, pilots, officers, 
members of the crews of such aircraft, and of other persons employed 
or transported on such aircraft. 
"(d) Captains, pilots, officers, members of the crews of such aircraft, 
and other persons employed or transported thereon against loss of life, 
injury, or detention. 
"(e) Statutory or contractual obligations or other liabilities of such 
aircraft or of the owner or operator of such aircraft of the nature 
customarily covered by insurance. 
"SEO. 1304. (a) Any department or agency of the United States 
may, with the approval of the President, procure from the Secretary 
any of the insurance provided under this title, except with respect to 
valuables covered by sections 1 and 2 of the Act of July 8, 1937 
(50 Stat. 479). 
"(b) The Secretary is authorized with such approval to provide 
such insurance at the request of the Secretary of Defense, and such 
other agencies as the President may prescribe, without premium in 
consideration of the agreement of the Secretary of Defense or such 
agency to indemnify the Secretary against all losses covered by such 
insurance, and the Secretary of Defense and such other agencies are 
authorized to execute such indemnity agreement with the Secretary. 
"SEC. 1305, (a) To the extent that he is authorized by this title to 
provide insurance, the Secretary may reinsure, in whole or in part, any 
company authorized to do an insurance business in any State of the 
United States. The Secretary may reinsure with, or cede or retrocede 
to, any -such company, an^ insurance or reinsurance provided by the 
Secretary in accordance with the provisions of this title. 
"(b) Reinsurance shall not be provided by the Secretary at rates 
less than nor obtained by the Secretary at rates more than the rates 
established by the Secretary on the same or similar risks or the rates 
charged by the insurance carrier for the insurance so reinsured, which-
ever is most advantageous to the Secretary, except that the Secretary 
may make to the insurance carrier such allowances for expenses on 
account of the cost of services rendered or facilities furnished as he 
deems reasonably to accord with good business practice, but such allow-
ance to the carrier shall not provide for any payment by the carrier 
on account of solicitation for or stimulation of insurance business. 
"SEC. 1306, (a) Moneys appropriated by Congress to carry out the 
provisions of this title and all moneys received from premiums, 
salvage, or other recoveries and all receipts in connection with this 
title shall be deposited in a revolving fund in the Treasury of the 
United States. 
Payments of return premiums, losses, settlements, 
judgments, and all liabilities incurred by the United States under 
this title shall be made from such funds through the disbursing facili-
ties of the Treasury Department. 
65 STAT.] 
PUBLIC LAW 47—JUNE 14, 1951 
67 
"(b) Such sums as shall be necessary to carry out the provisions 
of this title are authorized to be appropriated to such fund. 
"(c) At least annually, any balance in the revolving fund in excess 
of an amount determined by the Secretary to be necessary for the 
requirements of the fund, and for reasonable reserves to maintain 
the solvency of the fund shall be paid into the Treasury as mis-
cellaneous receipts. 
"(d) Annual payments shall be made by the Secretary to the Treas-
ury of the United States as miscellaneous receipts by reason of costs 
incurred by the Government through the employment of appropriated 
funds by the Secretary in carrying out the provisions of this title. 
These payments shall be computed by applying to the average monthly 
balance of appropriated funds retained in the revolving fund a per-
centage determined annually in advance by the Secretary of the 
Treasury. Such percentage shall not be less than the current average 
rate which the Treasury pays on its marketable obligations. 
"(e) The Secretary shall contribute to the Civil Service Retirement 
and Disability Fund, on the basis of annual billings as determined by 
the Civil Service Commission, for the Government's share of the cost 
of the Civil Service Retirement System applicable to the employees 
engaged in carrying out the provisions of this title. The Secretary 
shall also contribute to the employees' compensation fund, on the basis 
of annual billings as determined by the Secretary of Labor for the 
benefit payments made from such fund on account of the employees 
engaged in carrying out the provisions of this title. The annual 
billings shall also include a statement of the fair portion of the cost 
of the administration of the respective funds, v^hich shall be paid by 
the Secretary into the Treasury as miscellaneous receipts. 
"SEC. 1307. (a) The Secretary, in the administration of this title, 
may issue such policies, rules, and regulations as he deems proper and, 
subject to the following provisions of this subsection, may adjust and 
pay losses, compromise and settle claims, whether in favor of or against 
the United States and pay the amount of any judgment rendered 
against the United States in any suit, or the amount of any settlement 
agreed upon, in respect of any claim under insurance authorized by 
this title. 
In the case of any aircraft which is insured under the 
provisions of this title, (1) the policy shall specify a stated amount 
to be paid in the event of total loss, and such stated amount shall not 
exceed an amount determined by the Secretary, after consultation with 
the Civil Aeronautics Board, to represent the fair and reasonable value 
of the aircraft, and (2) the amount of any claim which is adjusted, 
compromised, settled, adjudged, or paid shall in no event exceed such 
stated amount. 
"(b) The Secretary may prescribe and change forms and policies, 
and fix, adjust, and change the amounts insured and rates of premium 
provided for in this title: Provided^ That with respect to policies in 
effect at the time any such change is made, such change shall apply 
only with the consent of the insured. 
"(c) The Secretary, in administering this title, may exercise his 
powers, perform his duties and functions, and make his expenditures, 
in accordance with commercial practice in the aviation insurance busi-
ness. Except as authorized in subsection (d) of this section, no insur-
ance broker or other person acting in a similar intermediary capacity 
shall be paid any fee or other consideration by the Secretary by virtue 
of his participation in arranging any insurance wherein the Secretary 
directly insures any of the risk thereof. 
"(d) The Secretary may, and whenever he finds it practical to do so 
shall, employ companies or groups of companies authorized to do an 
aviation insurance business in any State of the United States, to act 
as his underwriting agent. The Secretary may allow such companies 
Appropriation au-
thorized. 
Excess balance in 
revolving fund. 
Annual pa3rments to 
U. S. Treasury. 
Computation. 
Contributions to 
CivU Service Retire-
ment and Disability 
Fund, etc. 
Issuance oi p(riicies, 
etc. 
Restriction on fees. 
Employment of un-
derwritii^ agent. 
68 
PUBLIC LAW 47—JUNE 14, 1951 
[65 
STAT. 
Services of Govern-
ment agencies. 
Annual budget pro-
gram. 
A u d i t i n g of ac-
counts. 
Rights of airmen. 
Reports to Congress. 
Claims suits. 
62 Stat. 933. 
or groups of companies fair and reasonable compensation for servicing 
insurance written by such companies or groups of companies as under-
writing agent for the Secretary. The services of such underwriting 
agents may be utilized in the adjustment of claims under insurance 
provided by this title, but no claim shall be paid unless and until it 
has been approved by the Secretary. Such compensation may include 
an allowance for expenses reasonably incurred by such agent, but such 
allowance shall not include any payment by such agent on account 
of solicitation for or stimulation of insurance business. 
"(e) The Secretary with the consent of any executive department, 
independent establishment, or other agency of the Government, includ-
ing any field service thereof, may avail himself of the use of informa-
tion, services, facilities, officers, and employees thereof in carrying out 
the provisions of this title. 
"(f) The Secretary, in the performance of, and with respect to, the 
functions, powers, and duties vested in him by this title, shall prepare 
annually and submit a budget program as provided for wholly owned 
Government corporations by the Government Corporation Control 
Act as amended (59 Stat. 597; 31 IT. S. C. 841). The Secretary shall 
maintain an integral set of accounts which shall be audited annually by 
the General Accounting Office in accordance with principles and pro-
cedures applicable to commercial transactions as provided by the said 
Government Corporation Control Act: Provided^ That because of the 
business activities authorized by this title, the Secretary may exercise 
the powers conferred in said title, perform the duties and functions, 
and make expenditures required in accordance with commercial prac-
tice in the aviation insurance business, and the General Accounting 
Office shall allow credit for such expenditures when shown to be neces-
sary because of the nature of such authorized activities. 
"SEC. 1308. This title shall not affect rights of airmen under exist-
law. 
m SEC. 1309. The Secretary shall include in his annual report to Con-
gress a detailed statement of all activities and of all expenditures and 
receipts under this title for the period covered by such report and in 
addition make quarterly progress reports to the Congress with refer-
ence to contracts entered into, proposed contracts, and the general 
progress of his insurance activities. 
"SEC. 1310. Upon disagreement as to a loss insured under this title, 
suit may be maintained against the United States in the United States 
District Court for the District of Columbia or in the United States 
district court in and for the district in which the claimant or his 
agent resides, notwithstanding the amount of the claim and any pro-
vision of existing law as to the jurisdiction of United States district 
courts, and this remedy shall be exclusive of any other action by reason 
of the same subject matter against any agent or employee of the United 
States employed or retained under this title. If the claimant has no 
residence in the United States, suit may be brought in the United 
States District Court for the District of Columbia or in any other 
United States district court in which the Attorney General of the 
United States agrees to accept service. The procedure in such suits 
shall otherwise be the same as that provided for suits in the district 
courts by title 28, United States Code, section 1346 (a) (2), so far as 
applicable. All persons having or claiming or who might have an 
interest in such insurance may be made parties either initially or 
upon the motion of either party. 
In any case where the Secretary 
acknowledges the indebtedness of the United States on account of such 
insurance, and there is a dispute as to the persons entitled to receive 
65 STAT.] 
PUBLIC LAW 48—JUNE 15, 1951 
69 
payment, the United States may bring an action in the nature of a 
bill of interpleader against such parties, in the United States District 
Court for the District of Columbia, or in the United States district 
court of the district in which any such person resides. In such actions 
any party, if not a resident of or found within the district, may be 
brought in by order of court served in such reasonable manner as the 
court directs. If the court is satisfied that persons unknown might 
assert a claim on account of such insurance, it may direct service upon 
such persons unknown by publication in the Federal Register. Judg-
ment in any such suit shall discharge the United States from further 
liability to any parties to such action, and to all persons when service 
by publication upon persons unknown is directed by the court. 
The 
period within which suits may be commenced contained in said Act 
providing for bringing of suits against the United States shall, if 
claim be filed therefor within such period, be suspended from such 
time of filing until the claim shall have been administratively denied 
by the Secretary and for sixty days thereafter: Provided^ however^ 
That such claim shall be deemed to have been administratively denied 
if not acted upon within six months after the time of filing, unless 
the Secretary for good cause shown shall have otherwise agreed with 
the claimant. 
" S E C 1311. A person having an insurable interest in an aircraft may, 
with the approval of the Secretary, insure with other underwriters in 
an amount in excess of the amount insured with the Secretary, and, in 
that event, the Secretary shall not be entitled to the benefit of such 
insurance, but nothing in this section shall prevent the Secretary from 
entering into contracts of coinsurance. 
"SEO. 1312. The authority of the Secretary to provide insurance and 
reinsurance under this title shall expire five years from the date of 
enactment of this title." 
SEC. 2. Section 1 of the Civil Aeronautics Act of 1938, as amended, 
is hereby amended as follows: 
(1) Paragraph (20) (a) of such section is amended by striking out 
"(except the Philippine Islands)". 
(2) Paragraph (21) (a) of such section is amended by striking 
out "(except the Philippine Islands)". 
(3) Paragraph (29) of such section is amended by striking out 
"(c) the Philippine Islands, except that the operation of civil aircraft 
within the jurisdiction of the Philippine Islands shall be governed by 
laws enacted by the legislature of the islands and by executive regula-
tions designating air-space reservations or other prohibited areas; and 
(d)" and inserting in lien thereof "and (c)". 
Approved June 14, 1951. 
I n s u r a n c e w i t h 
other underwriters. 
Expiration of au-
thority. 
52 Stat. 977. 
49U. S. C. §401. 
Public Law 48 
CHAPTER 138 
AN ACT 
To furnish eiiier<i;ency food aid to India. 
June 15,1951 
[S. 872] 
Be it enacted hy the Senate and House of Representatives 
of the 
United of America in Congress a^seinhled^ That this Act may be cited 
as the "India Emergency Food Aid Act of 1951"'. 
SEC. 2. Notwithstanding any other provisions of law, the Admin-
istrator for Pk'onomic Cooperation is authorized and directed to pro-
vide emergency food relief assistance to India on credit terms as 
India Emergency 
Food Aid Act 011961.