Commonwealth Consolidated Acts

CIVIL AVIATION (CARRIERS' LIABILITY) ACT 1959 - SECT 41C

Acceptable contracts of insurance

             (1)  For the purposes of this Part, an acceptable contract of insurance , in relation to a passenger‑carrying operation that a carrier engages in, or proposes to engage in, is a contract of insurance that relates to the operation and meets the prescribed requirements.

             (2)  The prescribed requirements are:

                     (a)  the requirements of subsections (3) and (4); and

                     (b)  any other requirements made by the regulations for the purposes of this section.

             (3)  It is a requirement in relation to a contract of insurance that, under the contract, the insurer's liability to indemnify the carrier against personal injury liability, in respect of each passenger carried, or to be carried, by air by the carrier in the operation, is for an amount that is not less than:

                    (aa)  in respect of carriage by a carrier to which Part IA applies--260,000 SDRs or such higher number of SDRs as is prescribed by regulations for the purposes of this paragraph; or

                     (a)  in respect of carriage by a domestic carrier to which Part IV applies--$500,000; or

                     (b)  in respect of any other carriage--260,000 SDRs.

             (4)  It is a requirement of a contract of insurance that, under the contract, the insurer's liability to indemnify the carrier against personal injury liability:

                     (a)  is not affected by any breach of a safety‑related requirement imposed by or under any Act or by the Civil Aviation Safety Authority; and

                     (b)  is not contingent upon the financial condition or solvency of the carrier or upon the carrier not being or not becoming bankrupt or not beginning to be or not being wound up.

             (5)  The prescribed requirements do not prevent a contract of insurance from including provisions indemnifying the carrier against a liability other than personal injury liability.

             (6)  A contract of insurance under which:

                     (a)  the insurer indemnifies the carrier against liability as required by Part 205 of the Federal Aviation Regulations of the United States of America made under the law known as Title 49 United States Code--Transportation; and

                     (b)  the insurer's liability to indemnify the carrier:

                              (i)  extends to carriage in, to or from Australia; and

                             (ii)  is not affected by any breach of a requirement referred to in paragraph (4)(a);

is taken to meet the requirements referred to in subsection (4).

Adequate financial arrangements

             (7)  For the purposes of this Part, adequate financial arrangements , in relation to a passenger‑carrying operation that a carrier engages in, or proposes to engage in, are financial arrangements that are adequate to discharge any personal injury liability of the carrier in respect of each passenger carried, or to be carried, by air by the carrier in the operation.

             (8)  To avoid doubt, an acceptable contract of insurance in relation to a passenger‑carrying operation is an adequate financial arrangement in relation to the operation.