HISTORIC PRESS RELEASE : Government Renews Terrorism Insurance Cover for Aviation Industry [October 2001]

The press release issued by HM Treasury on 22 October 2001.

The Treasury has today decided to renew the scheme, set up to fill the gap in the commercial insurance market, for a further 30 days. This will ensure that UK airlines can continue to fly in the wake of events in the United States last month.

Chief Secretary Andrew Smith said:

“The Government has decided to renew the insurance scheme to enable airlines to keep flying. 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.

We have also decided to waive the premiums for airlines for a further 30 days, and are consulting the industry about the best basis for charging in the future.”

The scheme will be rolled forwards for a further thirty days, until midnight 24 November.  From 1 November airlines will be required to find commercial cover for the first $100m, and service providers for the first $50m, for third party war and terrorism liabilities. The Government scheme will provide the cover for liabilities above those minimum levels.  The Government will continue to waive the premium for the airlines.