---
kind: "section"
citation: "46 U.S.C. § 53903"
title: "46"
title_heading: "Shipping"
number: "53903"
heading: "Insurable interests"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53903"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 539 — War Risk Insurance"
---

# §53903. Insurable interests

- (a) **In General.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation may provide insurance and reinsurance under this chapter for—
  - (1) an [American vessel](/usc/46/53901.md?p=1), including a [vessel](/usc/46/53501.md?p=9) under [construction](/usc/46/53701.md?p=3);
  - (2) a foreign [vessel](/usc/46/53501.md?p=9)—
    - (A) owned by a citizen of the [United States](/usc/46/53101.md?p=10); or
    - (B) engaged in [transportation in the waterborne commerce of the United States](/usc/46/53901.md?p=3) or in such other transportation by water or such other services as the [Secretary](/usc/46/53101.md?p=8) considers to be in the interest of the national defense or national economy of the [United States](/usc/46/53101.md?p=10), when so engaged;
  - (3) [cargo](/usc/46/53901.md?p=2)—
    - (A) shipped or to be shipped on a [vessel](/usc/46/53501.md?p=9) insurable under this section, including by express or registered mail;
    - (B) owned by a citizen or resident of the [United States](/usc/46/53101.md?p=10);
    - (C) imported to or exported from the [United States](/usc/46/53101.md?p=10), or sold or purchased by a citizen or resident of the [United States](/usc/46/53101.md?p=10), under a contract of sale or purchase the terms of which provide that the risk of loss by [war risks](/usc/46/53901.md?p=4) or the [obligation](/usc/46/53701.md?p=9) to provide insurance against [war risks](/usc/46/53901.md?p=4) is on a citizen or resident of the [United States](/usc/46/53101.md?p=10); or
    - (D) shipped between ports in the [United States](/usc/46/53101.md?p=10);
  - (4) disbursements, including advances to masters and general average disbursements, and freight and passage money of a [vessel](/usc/46/53501.md?p=9) insurable under this section;
  - (5) personal effects of an individual on a [vessel](/usc/46/53501.md?p=9) insurable under this section;
  - (6) loss of life, injury, or detention by an enemy of the [United States](/usc/46/53101.md?p=10) after capture, with respect to an individual on a [vessel](/usc/46/53501.md?p=9) insurable under this section; and
  - (7) statutory or contractual [obligations](/usc/46/53701.md?p=9) or other liabilities of a [vessel](/usc/46/53501.md?p=9) insurable under this section or of the owner or charterer of such a [vessel](/usc/46/53501.md?p=9), of a nature customarily covered by insurance.
- (b) **Considerations for Foreign Vessels.—** In determining whether to provide insurance or reinsurance for a foreign [vessel](/usc/46/53501.md?p=9), the [Secretary](/usc/46/53101.md?p=8) shall consider the characteristics, employment, and general management of the [vessel](/usc/46/53501.md?p=9) by the owner or charterer.
- (c) **Non-War Risks.—** Insurance of a risk under [subsection (a)(5)](#a-5)–(7), insofar as it involves a liability related to an individual on the [vessel](/usc/46/53501.md?p=9), may include risks other than [war risks](/usc/46/53901.md?p=4) to the extent the [Secretary](/usc/46/53101.md?p=8) considers advisable.

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1627.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53903(a) | 46 App.:1283(a) (1st sentence), (b) (1st sentence), (c)–(f). | June 29, 1936, ch. 858, title XII, § 1203(a) (1st, 2d sentences), (b) (1st sentence), (c)–(f), as added Sept. 7, 1950, ch. 906, 64 Stat. 773, 774; Pub. L. 94–523, §§ 1–3, Oct. 17, 1976, 90 Stat. 2474. |
| 53903(b) | 46 App.:1283(a) (2d sentence). |  |
| 53903(c) | 46 App.:1284. | June 29, 1936, ch. 858, title XII, § 1204, as added Sept. 7, 1950, ch. 906, 64 Stat. 774. |

In subsections (a)(2) and (b), the words “foreign vessel” are substituted for “foreign-flag vessels” because of the definition of “foreign vessel” in chapter 1 of the revised title.

In paragraph (3), references to the territories and possessions of the United States are omitted as unnecessary because of the definition of “United States” in chapter 1 of the revised title.

In paragraph (5), the words “individual on a vessel insurable under this section” are substituted for “masters, officers, and crews of such vessels, and of other persons transported on such vessels” to eliminate unnecessary words.

In paragraph (6), the words “individual on a vessel insurable under this section” are substituted for “Masters, officers, members of the crews of such vessels and other persons employed or transported thereon” to eliminate unnecessary words.