Norwegian government proposes third-party insurance for aircraft

Airline Industry Information, Oct 1, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

The Norwegian government has said that it put forward a proposal for temporary third-party insurance for Norwegian aircraft and airports on 28 September.

The insurance would reportedly cover damage caused by acts of war and terrorism. The proposal also suggests that the ministry of transport and communications would be authorised to enter agreements on behalf of the state for such third party insurance.

The insurance would cover SAS aircraft registered in Norway as well as other aircraft operated by airlines and helicopter companies licensed in the country. The insurance would not however cover employees and passengers.

The extent of the insurance would be up to USD1,750m per incident and it would be subject to an insurance premium. The insurance would be effective for 30 days from 25 September, but the ministry can prolong it for a further period of up to 30 days.

The government decided on 24 September to enter into agreements with aviation companies with the proviso of the endorsement of the parliament. This was reportedly necessary as any previous agreements covering such damage were terminated at midnight on 24 September. The total coverage offered by the Norwegian state has been estimated at USD270bn.

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