Commentary on provisions of the Act Liabilities indemnities and insurance Section 38: Insurance
Subsection (1) enables regulations to prescribe insurance requirements for licence holders and other persons engaged in spaceflight activities. Therefore, even a person who is exempt from the requirement to hold an operator licence under section 4(3) may still be required to be insured under regulations.
	Subsection (2) provides a power for the Secretary of State to make available insurance or reinsurance to enable any person to comply with the insurance requirements prescribed in regulations or in licence conditions. Such regulations may only be made with the consent of the Treasury.
	Subsection (3) enables the Secretary of State to make arrangements with any person for the purpose mentioned in subsection (2). Such arrangements may include an indemnity or guarantee, or the making of grants (subsection (5)). The arrangements must not include the making available of insurance or reinsurance by the Secretary of State (as such insurance provision can only be made by way of regulations pursuant to subsection (2)).
	Subsections (6), (7), (9) and (10) comply with the Parliamentary convention that the destination of any public funds must be set out and with reporting requirements. These provisions are not to be read as implying that the funds received or paid out pursuant to arrangements enabled by subsections (2) and (3) will inevitably be paid to or by the Secretary of State. The powers to make insurance and reinsurance arrangements could enable payments to or by a separate legal person providing insurance or reinsurance.
	Subsection (8) states that a reference to insurance includes a reference to a type of security that satisfies conditions that may be set out in secondary legislation. The terms "insured" and "reinsurance" should be read accordingly.