AIG Aviation withdraws from S E Asia and Pacific regions
In recently released news, AIG Asia Pacific has announced following a strategic review of the AIG APAC Aerospace business that they will cease underwriting Aerospace risks as of 31 December 2021 – further details are outlined in the below announcement.
As always Aerosure will continue to keep our clients fully informed of further updates and solutions where required, however should you have any immediate queries please do not hesitate to contact us.
Following on from preliminary reviews of the Civil Aviation (Carriers’ Liability) Act 1959 undertaken by the Australian Government in 2018, new mandatory levels of liability insurance, originally proposed to be implemented effective from 1 October 2019 have now been enacted.
The Aviation Legislation Amendment (Liability and Insurance) Act 2020, passed by parliament late last year, came into effect on Thursday 17 June 2021. The Act amends the Civil Aviation (Carriers’ Liability) Act 1959, which is administered by the Department of Infrastructure, Transport, Regional Development and Communications (DITRDC) to:
- increase the cap on carriers’ liability for death or bodily injury of passengers on domestic flights, as well as the corresponding level of insurance required, to reflect the rate of inflation (from AU$725,000 to AU$925,000)
- increase the cap on carriers’ liability for death or bodily injury of passengers on international flights from 260,000 Special Drawing Rights (SDRs) to 480,000 SDRs (currently approximately AU$975,000)
- increase the liability limit for the destruction or loss of registered baggage (from AU$900 to Au$3,000) and non-registered baggage (from Au$90 to AU$300)
- enable the quantum of mandatory insurance to be increased by regulation
- clarify that carriers, and servants and agents of the carrier, share the same scope of liability
- establish a mechanism to expand the type of risks that carriers are required to insure against, to potentially include ‘war risks’, noting this change would be subject to consideration and consultation prior to any action being undertaken.
Should you have any questions in relation to the new legislation and limitation of liability amendments, please do not hesitate to contact the Aerosure team.
As you may be aware, in order to protect the people of NSW from the evolving COVID-19 outbreak, the NSW Government have just announced the implementation of additional restrictions (including stay-at-home orders) in relation to those working / living in four key local Government Areas (LGA’s) including the City of Sydney.
In view of the above, and prioritising the health & wellbeing of our staff, the Aerosure office will be closed during the restriction period. As always, we remain fully contactable 24 hours a day, 7 days a week to support the ongoing needs of our clients throughout this period.
The Aerosure Team