(a) Subject to the provisions of section 3416 of this chapter, the Government of the United States Virgin Islands hereby waives its immunity from liability and action and hereby assumes liability with respect to injury or loss of property or personal injury or death caused by the negligent or wrongful act or omission of an employee of the Government of the United States Virgin Islands while acting within the scope of his office or employment, under circumstances where the Government of the United States Virgin Islands, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred. The Government consents to have the liability determined in accordance with the same rule of law as applied to actions in the courts of the Virgin Islands against individuals or corporations; Provided, That the claimant complies with the provisions of this chapter.
(b) The provisions of subsection (a) of this section shall not apply if the injury or loss of property is caused by the gross negligence of an employee of the Government of the United States Virgin Islands while acting within the scope of his office or employment.
(c) For the purpose of this chapter, if the Government of the United States Virgin Islands should enter into a contract with a privately owned company, pursuant to which motor vehicles owned by the Government are to be operated in performing public transit service, the private company, its agents, servants and employees, while operating such motor vehicles, shall be relieved of, and made immune from common law liability to the same extent as the Government of the United States Virgin Islands; and, its liability shall be the same as the limitations of liability which the Government is subject to under this chapter, and in particular, section 3416 of this chapter shall apply to the private operator, its agents, servants, and employees, the same as if the private operator were the Government, and its agents, servants and employees were Government employees; and, the Government shall be solely responsible for handling and defending such claims arising out of the operation of the motor vehicles in the public transit service and the Government shall also be responsible for paying such claims and judgments arising out of, or based upon the operation of the motor vehicles in the transit service. Nothing in this subsection shall be construed as exempting any private company, its agents, servants, or employees from liability for any acts of gross or wilful negligence whether or not such acts were within the scope of services performed for the Government, and no exemption from liability is granted for acts performed outside the scope of services performed for the Government.