Australia to adopt Montreal Convention
The Federal Government’s introduction of new airline liability standards is expected to have little effect on local aviation insurance insurers.
Last week Parliament introduced a bill to ratify the international aviation agreement known as the Montreal Convention. Australia is the last OECD member country to ratify the agreement, which was finalised in 1999. It replaces the Warsaw Convention, which was originally formulated in 1929.
But Willis Aerospace (Pacific) CEO Greg Rector says in practice little will change with the new arrangements because local insurers already handle catastrophe events in a uniform fashion, so Australians haven’t been missing out on the convention’s improved standards.
“It brings the whole industry in Australia in line with the rest of the world, and that’s a good thing,” he said. “It will bring consistency in terms of legal affairs, but it’s not a big issue for insurers.”
The convention introduces tough liability criteria on airlines covering passengers and baggage. It can include uncapped liability for death and injury, and compensation for all proven damages.
Passengers will not be required to prove fault up to $180,000.
The Government says it adds necessary consumer protection standards. The previous standards were considered inadequate and outdated, even by the airlines, which implemented more generous liability arrangements.
Some 86 countries have since ratified the convention.
New terms will apply within six months from the date the bill is passed.
Last week Parliament introduced a bill to ratify the international aviation agreement known as the Montreal Convention. Australia is the last OECD member country to ratify the agreement, which was finalised in 1999. It replaces the Warsaw Convention, which was originally formulated in 1929.
But Willis Aerospace (Pacific) CEO Greg Rector says in practice little will change with the new arrangements because local insurers already handle catastrophe events in a uniform fashion, so Australians haven’t been missing out on the convention’s improved standards.
“It brings the whole industry in Australia in line with the rest of the world, and that’s a good thing,” he said. “It will bring consistency in terms of legal affairs, but it’s not a big issue for insurers.”
The convention introduces tough liability criteria on airlines covering passengers and baggage. It can include uncapped liability for death and injury, and compensation for all proven damages.
Passengers will not be required to prove fault up to $180,000.
The Government says it adds necessary consumer protection standards. The previous standards were considered inadequate and outdated, even by the airlines, which implemented more generous liability arrangements.
Some 86 countries have since ratified the convention.
New terms will apply within six months from the date the bill is passed.