Australia Domestic Carriage By Air – Increases to Mandatory Insurance Levels for Carriers

Following on from preliminary reviews of the Civil Aviation (Carriers’ Liability) Act 1959 (the Act) undertaken by the Australian Government in 2018, new mandatory levels of liability insurance are expected to come into effect from 1 October 2019.

The proposed changes follow consideration by the Department of Infrastructure, Transport, Cities and Regional Development of submissions received on their Discussion Paper released in April 2018 and an Exposure Draft of the proposed regulations released in July 2019.

The proposed regulations would increase the liability caps as follows:

Liability limits relating to passengers

  • A change to the liability limits relating to passengers on a domestic carrier under Part IV of the Act, by reason of injury or death resulting from an accident, to $925,000.
  • A change to the liability limits relating to passengers on a carrier other than domestic carrier under Part IV of the Act, by reason of injury or death resulting from an accident, to 480,000 SDRs.

Liability limits relating to baggage

  • A change to the liability limits relating to baggage of passengers under Part IV of the Act that is registered in respect of its destruction, loss or injury, to $3,000.
  • A change to baggage that is not registered baggage of passengers under Part IV of the Act in respect of its destruction, loss or injury, to $300.

Once these changes are in effect, carriers will need to be covered by insurance policies that reflect these increased liability limits.

As always Aerosure will continue to review insurance considerations in conjunction with our clients, however should you have any immediate queries please do not hesitate to contact us.