§ Chris GraylingTo ask the Chancellor of the Exchequer what plans he has to extend the Government's temporary underwriting of third party war risk insurance for the UK airline industry. [20118]
§ Mr. Andrew SmithThe Government's replacement insurance scheme for UK airlines and service providers was due to expire at midnight on 23 November. Assessment of the aviation insurance market demonstrated that commercial capacity for underwriting third-party war and terrorism liabilities above …50 million has not yet returned. It is unlikely that there will be any significant return of commercial insurance until reinsurance contracts are renegotiated at the beginning of January, which will shape the whole of the aviation industry, including aviation, for the next 12 months. Therefore the Treasury announced on 22 November that it had decided to extend the airline insurance scheme until midnight on 22 January 2002.