HISTORIC PRESS RELEASE : Government Renews Terrorism Insurance Cover for Aviation Industry [November 2021]
The press release issued by HM Treasury on 22 November 2001.
The Treasury has today decided to renew the scheme, set up to fill the gap in the commercial insurance market, until 23 January 2002. This will ensure that UK airlines can continue to fly in the wake of the events of September 11.
Chief Secretary Andrew Smith said:
“The Government has decided to renew the insurance scheme to enable airlines to keep flying. The Government’s objective remains to withdraw from the market as soon as practicable. However, there is still a gap in the commercial insurance market which the Government is filling to ensure the aviation industry has the cover it needs.”
The current scheme expires on 23 November. The scheme will be rolled forwards until midnight on 22 January 2002. As before airlines and service providers will be required to find commercial cover for the first $50m of third party war and terrorism liabilities. The Government backed Troika scheme will provide the cover for liabilities above those minimum levels.
Premiums will be payable by all airlines covered by the Troika scheme. These will continue to be on the per passenger basis recommended in European Commission guidelines. However, discussions will continue with the industry on whether this is the most appropriate basis.
The Government will also continue discussions with the industry with a view to more commercial cover being reintroduced into the market.
