NEWS – The report — Financial risk coverage of India’s commercial space launch industry: Need for developing insurance and reinsurance capabilities — was released by  space sector think tank ‘Spaceport Sarabhai’

HIGHLIGHTS

Backdrop and Context:

1. Heightened Risk to Space Launches:
   • Acknowledges the increased risk to space launches due to the growing presence of satellites and debris in orbit.
   • Cites statistics from the European Space Agency (ESA) regarding space debris objects in various size ranges.
2. Debris and Crowded Low Earth Orbit (LEO):
   • Highlights the significance of insurance coverage in addressing risks associated with space debris and the crowded low earth orbit.
   • Indicates the importance of regulatory measures and insurance frameworks in mitigating risks and ensuring industry sustainability.

Key Themes of the Report:

1. Third-Party Legal Liability:
   • Emphasizes the importance of third-party legal liability in the context of satellite launches.
   • Discusses the legal frameworks that mandate non-government entities (NGEs) to provide insurance coverage.
2. Legislative Frameworks:
   • Highlights the need for legislative frameworks to regulate insurance coverage for space activities.
   • Advocates for clear legislation defining liability obligations and making them enforceable in courts.
3. International Law Regime:
   • Explains how the international law regime, based on major international space treaties, holds states internationally liable for space accidents involving NGEs.
   • Points out the lack of clarity in liability issues and the implications for financial risk coverage.

Report Recommendations:

1. Regulatory Approach:
   • Recommends a regulatory approach through legislation to address liability and insurance concerns in India’s commercial space launch industry.
   • Suggests specifying liability obligations in legislation to ensure enforceability.
2. Insurance Coverage:
   • Advocates for developing insurance and reinsurance capabilities to manage financial risks in the space sector effectively.
   • Stresses the need for clear legislative frameworks to define the extent of insurance coverage obligations.