liability and insurance in aviation - mcgill university · liability and insurance issues in...

LIABILITY AND INSURANCE

ISSUES IN AVIATION

A perspective on the current

status of modernization

Prof. Ludwig Weber

New Delhi, 23 - 25 April 2008


ISSUES IN AVIATION

MONTREAL CONVENTION 1999

- STATUS OF RATIFICATION

- STATUS OF IMPLEMENTATION

GLOBALTIME INITIATIVE

ROME CONVENTION MODERNIZATION

- STATUS OF WORK

- COMMENTS


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- STATUS OF RATIFICATION:

- As of 31/03/08, 86 States Parties

- 10 Asian States: Bangladesh, Cambodia, China, Japan, Malaysia, Maldives, Mongolia, Pakistan, Rep. of Korea and Singapore have ratified

- Convention applies to Hong Kong SAR and Macau SAR

- 4 States of Asia-Pacific (incl. New Zealand) ratified

- In addition, one REIO (the European Community) has ratified (27 States)


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- STATUS OF IMPLEMENTATION:

- MANY STATES PARTIES HAVE PASSED IMPLEMENTING LEGISLATION

- IN THE EU,

REGULATION (EC) 889/2002 WAS PASSED, ON THE BASIS OF Decision 2001/539/EC;

REGULATION (EC) 889/2002 RENDERS MONTREAL ’99 APPLICABLE TO:

- ALL INTERNATIONAL AND DOMESTIC ROUTES IN THE EU


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MONTREAL CONVENTION IMPLEMENTATION:

- EU REGULATION (EC) 785/2004 ON INSURANCE REQUIREMENTS FOR AIR CARRIERS WAS PASSED IN 2004

- REGULATION (EC) 785/2004 DEFINES MINIMUM

INSURANCE REQUIREMENTS FOR AIR CARRIERS:

- 250,000 SDR PER PASSENGER

- 1,000 SDR PER PASS. FOR BAGGAGE

- 17 SDR PER KG FOR CARGO


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MINIMUM INSURANCE REQUIREMENTS FOR AIR

CARRIERS APPLY:

- TO ALL COMMUNITY CARRIERS (INTERNATIONAL

AND DOMESTIC)

- NON-COMMUNITY CARRIERS SERVING THE EU

MUST INFORM THEIR PASSENGERS IF THEIR

COVERAGE DOES NOT MEET REG. 784/2004

REQUIREMENTS


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- UNITED STATES: US CODE OF FED. REGULATIONS, Sec. 205.5

- 300,000 USD PER PASS.

- 20 MILL. PER AIRCRAFT PER OCCURR.

- CANADA: AIR TRANSPORT REGULATIONS,

Sec. 7

- 300,000 CAD PER PASS.

- NO MINIMUM FOR BAGGAGE OR CARGO


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GLOBALTIME INITIATIVE- GLOBAL CANCELLATION OF WAR-RISK

INSURANCE IN THE WAKE OF SEPT.11

- ICAO ASSEMBLY RESOLUTION A33-20

- GLOBALTIME CONCEPT DEVELOPED -2002/2003

- CREATION OF GLOBALTIME AS IC-FUND MECHANISM

- COMPENSATION OF UI DAMAGE OF UP TO 15 BILLION USD

- BACKED BY STATES

- FINANCED BY PAX AND CARGO CHARGES

- NOT IMPLEMENTED, BUT CONCEPT HAD STRONG MEMBERSHIP SUPPORT


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ROME CONVENTION MODERNIZATION- MONTREAL PROTOCOL 1978

- PROPOSAL OF SWEDEN, LC/31 SEPT.2000

- ICAO SSG 2002-2004

- LC/32 FEB.2004

- SPECIAL GROUP HELD 6 MTGS, RESULTING IN TWO DRAFT TEXTS:

DRAFT ‘UNLAWFUL INTERFERENCE CONV.’

DRAFT ‘GENERAL RISKS CONVENTION’


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DRAFT UNLAWFUL INTERFERENCE CONVENTION:

STRICT LIABILITY OF THE OPERATOR

LIABILITY CAPPED, BASED ON A/C WEIGHT

SCM (SUPPLEMENTARY COMPENSATION MECHANISM) FOR DAMAGE ABOVE CAP

COMPENSATION UP TO 3 G USD PER EVENT


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DRAFT UNLAWFUL INTERFERENCE CONVENTION:

SCM FINANCED FROM PAX AND CARGO SHIPPER CONTRIBUTIONS

COMPENSATION FOR MID-AIR COLLISIONS

ADVANCE PAYMENTS CLAUSE

COMPULSORY INSURANCE CLAUSE


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DRAFT ‘GENERAL RISKS CONVENTION’:

TWO-TIER LIABILITY OF THE OPERATOR, WITH THRESHOLD (250,000 – 500,000 SDR)

NO LIMIT IN SECOND TIER

EXEMPTION FOR A/C OWNERS, LESSORS, MANUFACTURERS IN SQUARE BRACKETS

COMPENSATION FOR MID-AIR COLLISIONS

NO SCM


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PRESENT STATE OF WORK:

- LC/33, 21 APRIL – 2 MAY 08

- WORK ON UNLAWFUL INTERFERENCE

CONVENTION STILL CONTROVERSIAL

- PROVISIONS ON FINANCING AND

CONTRIBUTIONS

- EXEMPTION FOR OWNERS, LESSORS AND

MANUFACTURERS CONTROVERSIAL


ISSUES IN AVIATION

COMMENTS

GENERAL RISKS CONVENTION A LOGICAL STEP FORWARD

UNLAWFUL INTERFERENCE CONVENTION

INNOVATIVE BUT CONTROVERSIAL: SCM

MANDATORY INSUR. CLAUSE ENHANCED

OWNER/LESSOR EXEMPTION SHD BE DELETED


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THANK YOU

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