Air transport insurance

Liability and insurance in civil aviation field

In the framework of common transport policy and in order to strengthen the consumer`s protection, it is important to ensure a minimum level of insurance proper for regulation of air carriers liability in respect of passengers, baggage, cargo and third parties to cover the risks related to aviation - specific liability (including risks related to acts of war, terrorism, hijacking, acts of sabotage, unlawful seizure of aircraft and civil rebellion).
Legal framework in the insurance and reinsurance activity, developing and strengthening relationships between insurers, policyholders and third parties consists of the Constitution of Republic of Moldova, the Civil Code of the Republic of Moldova, Insurance Law no. 407-XVI from 21.12.2006, the Law on compulsory insurance of civil liability of carriers in respect of travelers no. 1553-XIII of 25.02.1998, normative acts of the supervisory Authority, issued for the execution of the Law on Insurance, international agreements from the domain to which Moldova is party.
Currently, aeronautical agents have relationships on national insurance of civil liability with the following insurance organizations (insurers):

European legislation on air carriers liability and passengers rights who use this means of transport

Liabilities of community air carriers towards its passengers in case of accident for damage sustained, in case of death or wounding of a passenger or any other injuries suffered by a passenger, if the accident which caused the damage took place on board an aircraft or during any operations of embarking or disembarking are laid down in Regulation (EC) no. 2027/97 of 9 October 1997 on air carrier liability in case of accidents, as amended and supplemented.
Montreal Convention provides unlimited liability in case of death or injury of air passengers.
Minimum insurance requirements for air carriers and aircraft operators in respect of passengers, goods, cargo and third parties both for commercial flights, as well as private are fixed in Regulation (EC) nr.785/2004 the European Parliament and of the Council of 21aprilie 2004 on insurance requirements for air carriers and aircraft operators, as amended and supplemented.
Regarding the transport of mail, the insurance requirements are laid down in Regulation (EC) no. 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community.

Insurance for liability for passengers, baggage and cargo

  1. Air operations must be provided and maintained in terms of life insurance contracts adequate to cover liability in case of accidents, in particular in respect of passengers, baggage, cargo, in accordance with the Convention for the Unification of Certain Rules relating to transport international Aviation, done at Montreal on 28 May 1999, with subsequent amendments of 30.12.2009.

Thus, the insurance level cannot be less than:

  • 113 100 Special Drawing Rights (SDR) for passenger injury or death following the accident / incident aircraft (Article 21, paragraph 1 of the Convention);
  • 4 694 SDR per passenger for damage caused by delay in the carriage of persons, Article 22, paragraph 1 of the Convention);
  • 1131 SDR per passenger in case of destruction, loss, damage or delay to baggage transport (Article 22, paragraph 2 of the Convention);
  • 19 SDR per kilogram carrier's liability in case of destruction, loss, damage or delay in the carriage of goods (Article 22, paragraph 3 of the Convention).
  1. The air operator flying in member states of the European Civil Aviation Conference (ECAC) must guarantee a minimum level of insurance estimated at SDR 250,000 in case of death, wounding or other bodily injury suffered by a passenger in an accident aircraft in accordance with ECAC Resolution on minimum insurance liability to passengers and third parties, approved on 13 December 2000 (Resolution ECAC/25-1).

Liability for third party

  1. The air operator flying in member states of the European Civil Aviation Conference (ECAC) must ensure a level of insurance for each aircraft for damage to third parties in an accident aircraft in accordance with ECAC Resolution on minimum insurance passengers and liability to third parties (Resolution ECAC/25-1) and should not be less than:
  • 1 500 000 SDR – Category I (aircraft below 2 000 kg);
  • 4 500 000 SDR – Category II (aircraft below 6 000 kg);
  • 12 000 000 SDR – Category III (aircraft below 25 000 kg);
  • 50 000 000 SDR – Category IV (aircraft below 100 000 kg);
  • 90 000 000 SDR – Category V (aircraft over 100 000 kg).
  1. The air operator flying in other parts of the world than ECAC countries must ensure a level of assurance for each aircraft for damage of other third parties emerged from an accident, with regard to requirements of operating states in the region.