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![handle is hein.gao/gaobaddcz0001 and id is 1 raw text is:
FILE:
B-185488
MATTER OF:
DECISIONI
AI
DATE: j 1976
Payment of Insurance Premiums
DIGEST:
Under long-standing policy of the Government that it is
self-insurer and will not purchase commercial insurance
against loss or damage to its own property, insurance
should not have been purchased on a NASA exhibit loaned
to a unit of the Air Force for display purposes. How-
ever, since self-insurance principle is one of policy
rather than positive law and instant insurance coverage
was issued in good faith, premium may be paid.
A decision has been requested by the Accounting and Finance
Officer, 94th Tactical Airlift Wing (TAW), Dobbins Air Force Base,
Georgia, as to the legality of payment of a $100 premium on a
commercial insurance policy in the amount of $16,300 to insure
certain items loaned to the TAW by the National Aeronautics and
Space Administration (NASA) for purposes of display at an open
house conducted September 7, 1975. The items are described as
(1) 1/3 Scale Appolo Lunar Module exhibit, valued for insurance
purposes at $7,500; (2) 1/40th scale rotating space shuttle model
in self-contained shipping exhibit container valued at $4,300 for
insurance purposes; and (3) a lunar rock display valued at$4,500
for insurance purposes. The submission states that:
Insurance was procured because NASA required
it to cover the loan of its exhibit and would not
consent to the loan to the Air Force without the
Marine Floater Insurance Policy coverage.
As was stated in our decision B-175086, May 16, 1972--
* * * it is the settled policy of the United
States to assume its own risks of loss in both tort
matters and damage to its own property and, hence,
the Government does not ordinarily purchase insurance.
This policy is based upon the theory that the magni-
tude of the Government's resources makes it more
advantageous for the Government to carry its own
risks than to have them assumed by private insurers ]ROLISHED DECISlOOL
at rates sufficient to cover all losses, to pay
their operating expenses, and to leave such insurers 55 CompGe.*
a profit. Thus, it has been held consistently that
appropriated moneys are not available for the payment
4gqol
THE COMPTROLLER GENERAL
OF THE UNITEI STATES
WASHINGTON, D. C. 20548
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