§ Lord Swinfenasked Her Majesty's Government:
What conclusions they have reached on the case for compulsory third party insurance in aviation, in the light of measures being taken towards the creation of a single market in air services.
The Minister of State, Department of Transport (The Earl of Caithness)The EC Licensing Regulation (Council Regulation (EEC) No. 2407/92 of 23rd July 1992), which is part of the single market in aviation, introduces from 1st January 1993 a statutory requirement for air carriers to hold insurance to cover liability in case of accidents in respect of passengers, luggage, cargo, mail and third parties. Any air transport operator established within the European Community and operating commercially will, with minor exceptions, be subject to this requirement as a condition of holding the new operating licence—which all Community air carriers will need to have.
We have already been examining the case for a general scheme, within the UK only, for compulsory third party insurance for all the UK operators and pilots. In the light of consultation with the Civil Aviation Authority and the insurance industry (and in the light of the new EC requirement), we have found no reason to doubt that the great majority of UK operators and pilots do already hold insurance in respect of third parties. Accordingly, taking into account the new EC requirement, we see no reason to add to bureaucracy and administrative costs by introducing a separate UK scheme.