Brussels, 16/05/2003 (Agence Europe) - In its adoption of the report by UK Conservative James Nicholson on the proposed directive laying down minimum insurance requirements for all air carriers and operators within Europe in Strasbourg on Tuesday (first reading, co-decision), the European Parliament modified the proposal, making insurance requirements more stringent. However, it reduced the minimum amounts required by the European Commission, as it felt they were too high for smaller companies. Lastly, Parliament rejected amendments by the Green/FTA group: one asking for contractual insurance also to cover "the unexpected, accidents or chance happenings" (and not just situations involving third parties, such as acts of terrorism), and the other proposing that the Commission takes the legislative initiative to standardise airports' insurance requirements.
The Parliament greatly reduced the minimum insurance requirements within the proposal: it is proposing seven categories (from 1.5 million SDRs- special drawing rights- for aircraft under 2,000kg, to 250 million SDR for aircraft over 2,000kg) instead of the four planned by the European Commission (from 880 million SDR for aircraft under 25,000kg to 600 million SDR for aircraft over 200,000kg). Also, given the state of the insurance market, "the values quoted are globally limited to the available amounts occasionally offered by the commercial insurance market".
Parliament also adopted several amendments with a view to widening the scope of the directive, by requesting that the provisions apply: 1) to the occupants of the aircraft, i.e. other than passengers and crew members; 2) even when the aircraft operating agency does not hold an operating licence; 3) to aircraft with the same departure and destination airport. Parliament also requires the transporter or operator to prove that they have insurance cover prior to timetable planning. It believes that the air-traffic control authorities should be able to prevent an aircraft from taking off if they feel cover is inadequate, and that surprise inspections should be authorised to check that the regulation is being applied. Penalties planned for infringement of the regulation are as follow: denial of access to Community airways to air carriers from third countries, and the withdrawal of the operating licence for internal carriers.
Lastly, out of concern for the rights of air carriers, Parliament feels that the registration of proof of insurance in one Member State should be valid in all Member States, and that aircraft transporters registered in a third country should be able to choose either to be insured on the European market, or to supply other forms of guarantee provided for in the proposal.