Following the terrorist attacks in the United States on 9/11, the European Commission 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, Regulation (EC) No 785/2004 of the European Parliament and of the Council of 21 April 2004 on insurance requirements for air carriers and aircraft operators ensures a proper minimum level of insurance to cover liability of air carriers in respect of passengers, baggage, cargo and third parties.
This Regulation, which entered into force on 30 April 2005, applies to all air carriers and to all aircraft operators flying within, into, out of, or over the territory of a Member State. It requires both commercial air carriers and general aviation aircraft operators to be insured, in particular in respect of passengers, baggage, cargo and third parties, to cover the risks associated with aviation-specific liability (including acts of war, terrorism, hijacking, acts of sabotage, unlawful seizure of aircraft and civil commotion).
Insurance in respect of liability for passengers, baggage and cargo
- For liability in respect of passengers, the minimum insurance cover must be 250 000 SDRs per passenger.
- For liability in respect of baggage, the minimum insurance cover must be 1 288 SDRs per passenger.
- For liability in respect of cargo, the minimum insurance cover must be 22 SDRs per kilogram.
[1 SDR = ca. 1.18 €]
Insurance in respect of liability for third parties
For liability in respect of third parties, the minimum insurance cover per accident and per aircraft depends on the maximum take-off weight (MTOM) of the aircraft. This takes into account that the potential damage on the ground increases with the weight of the aircraft. For aircraft with less than 500 kg MTOM, the minimum insurance cover is 750,000 SDR. For aircraft with 12-25 tons MTOM (e.g. regional jets), the minimum insurance cover is 80 million SDR. For aircraft with 200-500 tons MTOM (e.g. long-haul jets), the minimum insurance cover is 500 million SDR.
Legislation
Policy and other related documents
Summaries of legislation - Insurance for air carriers and aircraft operators Montreal Convention on air carrier liability
Mid-term review of Regulation 785/2004 in the framework of the Fitness Check exercise