Association of Asia Pacific Airlines
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Sunday, 24 February 2019   

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Aviation Insurance

AAPA believes that acts of war and terrorism are targeted at States and therefore it should be the responsibility of governments to assume the liabilities resulting from such acts as they are national security issues. In 2004, we called for the provision of appropriate government measures/assurances to ensure that the aviation industry is able to continue operating without the liability coverage for losses as a result of the “perils” stipulated in the exclusion clause designated AVN 48C.

A number of governments have specific regulations governing the liability coverage of those “perils”, for example, the USA (DOT 14 Part 205), Canada (Part 7 of the Canadian Transportation Agency Air Transportation Regulations); Switzerland (Air Navigation Act of 1948 and Air Navigation Decree of 1973); and Australia’s Civil Aviation Act (Carrier’s Liability) 1959.

At the 2009 Diplomatic Conference held in Montreal, ICAO adopted a resolution encouraging States to ratify two conventions - the Convention on Compensation for Damage to Third Parties, Resulting from Acts of Unlawful Interference Involving Aircraft (Unlawful Interference Convention) and the Convention on Compensation of Damage Caused by Aircraft to Third Parties (General Risks Convention).

However, there are also many governments that stipulate minimum insurance requirements as part of their operation certification such as the EU Regulation 785/2004 that entered into force on 1 May 2005. EU 785/2004 stipulates compliance by airlines with minimum insurance coverage for war and terrorism risks.

In 2009, ICAO reviewed the limits of liability under Article 24 of the Montreal Convention of 1999. The inflation adjustment (13.1%) to liability limits governed by the MC99 took effect from 30 December 2009.

Related Links:

  • AAPA Resolution on Aviation Insurance issued in 2004
  • Updated on : 13 January 2014
    AAPA is the trade association for international airlines based in the Asia-Pacific region, addressing a wide range of issues affecting air travel.
    AAPA Member Airlines: Air Astana · All Nippon Airways · Asiana Airlines · Bangkok Airways · Cathay Pacific Airways · China Airlines · EVA Airways · Garuda Indonesia · Japan Airlines · Korean Air · Malaysia Airlines · Others · Philippine Airlines · Royal Brunei Airlines · Singapore Airlines · Thai Airways International