European Union (EU) Regulation 785/2004, which went into effect April 30 and requires minimum aircraft insurance levels for war risk and third-party liability, has resulted in "severe financial impacts" for operators far greater than expected, according to the International Business Aviation Council (IBAC). Donald Spruston, director general of IBAC, sent a formal letter to EU Director of Transport Daniel Calleja Crespo, urging an immediate review of the regulation. "The industry considers the insurance levels to be out of proportion to the risk and unwarranted because of the significant burden and negative impact on the efficiency of non-commercial air transport operations," Spruston wrote in the June 2 letter. "The aviation insurance underwriters have established fee structures that substantially increase the annual costs of insurance to provide third-party liability and war risk insurance beyond the historical limits." Exacerbating this issue, Spruston said, is the "inconsistent application" of the regulation by EU member states. "Therefore, the business aviation industry respectfully requests a full review of the minimum insurance requirements." NBAA encouraged its members to send individual letters to the EU expressing their concern and supporting the IBAC position.
Bizav Leaders Urge EU To Withdraw Insurance Regulation
- April 25, 2007, 10:24 AM