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What is the government doing about Terrorism insurance from friday

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What is the government doing about Terrorism insurance from friday

Old 30th Oct 2002, 17:59
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Question What is the government doing about Terrorism insurance from friday

Does anybody know what is going to happen from Friday when the government will no longer be offering the Security screeners or airlines insurance via Troika. It has been suggested that all aircraft flying from the Uk will be grouded.

It seems whilst the government have been forcing the airlines to buy their insurances commercially they have forgotten about the security providers who cannot buy the required cover in the commercial market!

True or false?
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Old 31st Oct 2002, 13:35
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Unhappy Airline Insurance

Just when you thought they had stopped kicking you...
UK airlines will no longer get special government insurance against terrorist attacks from midnight on Thursday.
The European Union allowed governments to offer special cover to airlines last year, when insurance premiums soared to unaffordable levels after the 11 September attacks.

But the EU has said the temporary arrangements must now stop as the exceptional circumstances that justified the state aid no longer exist.

The UK government will end its scheme, but some countries, such as France and Germany, have applied to the European Commission to be allowed to extend their cover.

The US government is also continuing to help its airlines with cover.

Limited choice

Roger Wiltshire, chairman of the British Air Transport Association, said he was "confident" that all UK airlines would have cover in place in time.

Virgin Atlantic was still finalising its insurance cover on Thursday

However, he told BBC Radio 5 Live that airlines were facing a much tougher market for buying insurance.

"There are now only three companies out there offering insurance in this area compared with something like 100 before," he said.

As the UK government has gradually been increasing premiums, commercial insurance rates are unlikely to be significantly higher, Mr Wiltshire said.

But insurance brokers say premiums are now about three times higher than before 11 September last year, and the level of cover on offer has also been reduced.

UK 'being penalised'

A spokesperson for Virgin Atlantic told BBC News Online on Thursday the airline was "finalising a deal which should be in place by this afternoon".

The airline said it was "extremely disappointed that the government is ending the scheme" given what is happening elsewhere in Europe and in the US.

British Airways said it had cover in place, but noted that as US airlines will continue to have their costs underwritten, European carriers would be put at a disadvantage.

Paul Keyhoe, the managing director of London Luton Airport, said he thought the UK air industry was being unfairly penalised.

"Aviation is an international business and therefore we need a level playing field across it," he told BBC Radio 4's Today programme.

"While the US is continuing to subsidise their aviation industry I think we should do the same in Europe."

Rethink needed

Rene Fennes from the Association of European Airlines told the Today programme that a new approach to terrorism insurance needed to be found.

"What governments are asking now is that war and terrorism risk is an issue that need to be dealt with in the commercial market, and they deny the fact that in the end, when there is a big terrorist attack, governments will have to step in," he said.

And he said those firms that are offering insurance are not there for the long term.

"Once something happens they will exit again and we will be back at the government's door," Mr Fennes said.

"They should try and solve the issue fundamentally and see whether we can come up with a long term solution that is good for both the industry and, most importantly, for the public."
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Old 31st Oct 2002, 15:19
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Well from my understanding, the latest is that the Government is they would prefer to force airlines to indemnify security providers rather than continue to provide cover for them via a mini-TROIKA.


1, insurers of airlines are very unlikely to cover this
2, if they do it will be at additional cost to airlines, who have already been forced to spend vast sums on insurance premiums
3, the chances of forcing non-UK airlines to provide such an indemnity is nil.

Not good once again!
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Old 31st Oct 2002, 15:20
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Cover for service providers is available in the commercial market.

Contact your broker.
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Old 31st Oct 2002, 15:41
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Service providers yes, but I think you'll find service providers excludes Security providers (eg baggage screening etc)
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