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Aviation terror capacity gap sparks demand for state aid.
(From Insurance Day)
Byline: Peta Miller
EUROPE's airlines have begun another round of lobbying for state-backed terrorism cover after commercial insurance was restricted and Globaltime, the international war risk contingency scheme, failed to garner enough support.
Mindful of the extensive and cheap cover offered by the US Federal Aviation Administration (FAA) to its carriers across the Atlantic, which looks set to run until 2008, the Association of European AIrlines (AEA) has written to the European Commission (EC) calling for similar levels of support.
In a letter to the EC's director of air transport, the Association of European Airlines (AEA) said: "The commercial markets are now only prepared to provide severely restricted cover for war and terrorism third-party and passenger liability.
"Therefore, European Union member states' governments should assume responsibility for risks where the state is targeted by acts of war and terrorism including hostile atomic or nuclear detonation, at no cost and for the full amount of each and every valid claim for loss, damage or liability."
Contrary to claims that more cover is becoming available in the commercial market, the AEA revealed that Lloyd's aviation underwriters are set to extend an exclusion on hostile atomic or nuclear detonation to all third party and passenger liability claims caused by "dirty bombs", hostile use of electromagnetic pulses, and chemical or biological war an terrorism acts.
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