Brussels, 23/09/2002 (Agence Europe) - On Tuesday, the European Commission is to present a proposal of settlement fixing a common minimum insurance requirement level for airline companies in order to cover any damage that they would have to pay for in the case of accidents, acts of terrorism and war. The Commission, on the other hand, does not yet plan to place on the table the creation of a mutual fund scheme that would guarantee financial solidarity between Member States in the event of air disasters. The European Commission had announced these proposals in a communication of 2 July (EUROPE of 1/2 July, p.10).
So far, airline companies whose planes enter the Community territory must have contracted an insurance for harm to passengers, luggage, mail, cargo and third parties, but without common criteria or minimum amounts. The Commission proposes that they be obliged to be insured to cover their liability for a minimum amount of 250,000 special drawing rights (international monetary unit) for harm caused to passengers (death or injury) as well as their registered baggage (loss, theft or destruction). For cargo, the amount is of at least 17 SDRs per kilo. For mail, the sum would be set by Member States. For harm caused to third parties, the minimum demanded for insurance contracted by companies ranges from 80 to 600 million SDRs depending on the maximum weight at take off for the aircraft in question. This proposal concerns all aircraft, of the Community and third countries, regular line aircraft, non-commercial aircraft and State aircraft, which land or take off from an EU airport or over-fly the European sky. It relates to accidents and acts of terrorism or war as well. Member states will have to strengthen their controls and refuse over-flights, landing or take-off to any aircraft not respecting those conditions.
On Tuesday, the Commission will not propose the creation of a mutual fund to cover damage caused to third parties not covered by insurance. The creation of the Eurotimes fund is being demanded by the airline sector. The Commission envisaged the creation of this fund in its 2 July communication, but has not yet decided if it is to propose it formally. As the International Civil Aviation Organisation asked its member to decide on the creation of a mutual fund by 15 October, the Commission will nevertheless present two working papers on Tuesday to encourage the Fifteen to reach a "co-ordinated" position.