Following the terrorist attacks in the United States on the air
transport industry, the European Union (EU) has taken an interest in
insurance requirements in the aviation industry. In the framework of
the common transport policy, and in order to foster consumer protection
and avoid distortion of competition between air carriers, the EU would
like to ensure a proper minimum level of insurance to cover liability
of air carriers in respect of passengers, baggage, cargo and third
parties. The required insurance includes coverage for war,
terrorism, hijacking, sabotage, unlawful seizure of aircraft, and civil
commotion.
This
regulation applies to all air carriers and to all aircraft operators
flying within, into, out of, or over the territory of an EU country
used for commercial purpose. Where EU countries are not
satisfied
that the conditions of this regulation are met, they must prohibit an
aircraft from taking off until the air carrier or aircraft operator
concerned has produced evidence of adequate insurance coverage.
Summary of the regulations (as of 07/2010):
- Passenger liablility: minimum 250,000
SDR** per passenger
- Baggage liability: minimum 1,131 SDR per
passenger
- Cargo liability: minimum 19 SDR per kilogram
- Third
Party Liability: minimum is based on aircraft weight, ranges from
750,000 SDR to 700 million SDR, per accident per aircraft
**Note: The SDR was redefined
as a basket of currencies, today
consisting of the euro, Japanese yen, pound sterling, and U.S. dollar.
The U.S.
dollar-equivalent of the SDR is posted daily on the IMF’s
website. It is calculated as the sum of specific amounts of the four
basket currencies valued in U.S. dollars, on the basis of exchange
rates quoted at noon each day in the London market.
Fill
out our Quick Quote form today with a little information
about
your business, aircraft, and flying operations and we’ll get you
competitive insurance quotes from our top-rated insurance partners and
offer you expert advice on liability limits that will protect you and
your business.
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