A bill to amend the Atomic Energy Act of 1954 to require licensees and contractors to accept greater financial responsibilities.

Disallows the insertion of limitation of liability clauses in contracts granted to licensees for the purpose of distribution of special nuclear material, or the limitation of the liability of such contractors and licensees by the United States.

Requires prospective licensees to, as a condition of receiving a license, have and maintain financial protection to cover public liability claims.

Authorizes the Atomic Energy Commission to enter into agreements of indemnification in such amounts determined by the Commission to be appropriate to cover public liability resulting from activities under contracts for the benefit of the United States involving a risk of public liability from a substantial nuclear incident.

Provides that a contractor engaged in the underground detonation of a nuclear device shall, to the extent indemnified under this Act, be liable to the same extent as would a private person acting as principal, and no immunity or defense founded on the Federal, State, or municipal character of the contractor or the work to be performed shall be effective to bar such liability.

States that the Commission shall use, to the maximum extent practicable, the facilities and services of private insurance organizations.

Provides that, when it is determined that the United States will probably be required to make payments under this Act, the Commission on its own behalf or through the Attorney General may take charge of, defend and/or settle such action.

Authorizes the Commission to enter into an agreement for the indemnification of the nuclear ship Savannah.

Provides that the Commission and other indemnitors may, without securing releases or admitting liability, make payments to provide immediate assistance to claimants following a nuclear incident.

States that defenses as to the fault of indemnified persons, charitable or government immunity, or expiration of the statute of limitations if suit is instituted within 3 years of the date on which the claimant could reasonably have known of his injury and the probable cause thereof, shall be waived by required provisions in the licensing agreement. States that such waivers shall not preclude other defenses normally assertable.

Provides that the Federal district court of the district in which the nuclear incident takes place shall have original jurisdiction over the controversy without regard to the citizenship of any party involved. Provides that such district court, for the purposes of such action, shall be able to effect national service of process. (Amends 42 U.S.C. 2012, 2073, and 2210)