(a) Any operation, service or program provided by the Delaware Transportation Authority or under its auspices not covered by a general liability policy, self-insurance or other insurance policy as shall be legally established and funded by said Authority shall be covered and protected by the doctrine of sovereign immunity of the State which shall be applicable not only to the Authority but to each of its agencies, administrations, subsidiaries and each of their respective officers and employees; which immunity shall apply to and against any lawsuit or liability arising from any such operation, service or program, except as specifically excepted under this section. No legal or equitable action seeking damages as a result of any operation, service or program described in the preceding sentence shall be permitted or damages recovered except as such activity is and shall be covered by an insurance program procured in accordance with law and for which adequate funding is available. In the event that insurance has been provided, such claim, including any award for damages or costs assessed against the Authority, its administrations, subsidiaries, officers or employees either individually or on behalf of their employer shall not exceed the amount of said insurance covering the risk or loss or the amount of $300,000 whichever amount shall be the lesser for any and all claims arising out of a single occurrence.
(b) For fiscal years beginning July 1, 1997, and thereafter, the annual budget of the Delaware Transit Corporation shall include funding for an insurance program as described in subsection (a) of this section. This insurance program may be provided by either (1) a combination of self-insurance and commercially procured insurance, or (2) entirely commercially procured insurance. The monetary limits of § 1329(a) of this title shall apply to passenger rail carrier operations authorized under § 1332 of this title. For all other operations of the Delaware Transit Corporation, the monetary limits of § 1329(a) of this title shall not apply, and the Corporation shall instead be liable for the amount of its insurance covering the risk or loss; provided, however, that the insurance program shall provide a minimum coverage of $300,000 for any and all claims arising out of a single occurrence.