§ Mr. DevaTo ask the Secretary of State for Transport what conclusions he has reached on the case for compulsory third party insurance in aviation, in the light of the single market in aviation.
§ Mr. NorrisThe EC licensing regulation (council regulation (EEC) No. 2407/92 of 23 July 1992), which is part of the single market in aviation, introduces from 1 January 1993 a statutory requirement for air carriers to hold insurance to cover liability in case of accidents in90W 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.
My Department had already been examining the case for a general scheme, within the United Kingdom only, of compulsory third party insurance for all United Kingdom 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), my officials have found no reason to doubt that the great majority of United Kingdom operators and pilots do already hold insurance in respect of third parties. Accordingly, taking into account the new EC requirement, I see no reason to add to bureaucracy and administrative costs by introducing a separate United Kingdom scheme.