
Article 1 

1. The objective of this Regulation is to establish minimum insurance requirements for air carriers and aircraft operators in respect of passengers, baggage, cargo and third parties.
2. In respect of the carriage of mail, the insurance requirements are those set out in Regulation (EEC) No 2407/92 and in the law of England and Wales, Scotland or Northern Ireland.
Article 2 

1. This Regulation shall apply to all air carriers and to all aircraft operators flying within, into, out of, or over the territory of the United Kingdom.
2. This Regulation shall not apply to:
(a) State aircraft as referred to in Article 3(b) of the Convention on International Civil Aviation, signed at Chicago on 7 December 1944;
(b) model aircraft with an MTOM of less than 20 kg;
(c) foot-launched flying machines (including powered paragliders and hang gliders);
(d) captive balloons;
(e) kites;
(f) parachutes (including parascending parachutes);
(g) aircraft, including gliders, with a MTOM of less than 500 kg, and microlights, which:
— are used for non-commercial purposes, or
— are used for local flight instruction which does not entail the crossing of international borders,in so far as the insurance obligations under this Regulation relating to the risks of war and terrorism are concerned.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 3 
For the purposes of this Regulation:(a) ‘air carrier’means an air transport undertaking with a valid operating licence;
(b) ‘United Kingdom air carrier’ means an air carrier with a valid operating licence granted by the CAA in accordance with Regulation (EC) No 1008/2008;
(ba) ‘non-UK air carrier’ means an air carrier which is not a United Kingdom air carrier;(c) ‘aircraft operator’means the person or entity, not being an air carrier, who has continual effective disposal of the use or operation of the aircraft; the natural or legal person in whose name the aircraft is registered shall be presumed to be the operator, unless that person can prove that another person is the operator;
(ca) ‘the CAA’ means the Civil Aviation Authority;
(cb) ‘the UK competent authority’ means—
(i) in such cases as are indicated by regulation 3(2) of the Civil Aviation (Insurance) Regulations 2005, the Secretary of State or a person authorised by the Secretary of State, and
(ii) in any other case, the CAA;(d) ‘flight’ means:
— with regard to passengers and unchecked baggage, the period of transport of the passengers by aircraft including their boarding and disembarkation,
— with regard to cargo and checked baggage, the period of transport of baggage and cargo from the moment the baggage or cargo is handed to the air carrier until the moment of delivery to the entitled recipient,
— with regard to third parties, the use of an aircraft from the moment when power is applied to its engines for the purpose of taxiing or actual take-off until the moment when it is on the surface and its engines have come to a complete stop; additionally, it shall mean the moving of an aircraft by towing and push-back vehicles or by powers which are typical for the drive and the lift of aircraft, particularly air streams;(e) ‘SDR’means a Special Drawing Right as defined by the International Monetary Fund;(f) ‘MTOM’means the Maximum Take Off Mass, which corresponds to a certified amount specific to all aircraft types, as stated in the certificate of airworthiness of the aircraft;(g) ‘passenger’means any person who is on a flight with the consent of the air carrier or the aircraft operator, excluding on-duty members of both the flight crew and the cabin crew;(h) ‘third party’means any legal or natural person, excluding passengers and on-duty members of both the flight crew and the cabin crew;(i) ‘commercial operation’means an operation for remuneration and/or hire.
Article 4 

1. Air carriers and aircraft operators referred to in Article 2 shall be insured in accordance with this Regulation as regards their aviation-specific liability in respect of passengers, baggage, cargo and third parties. The insured risks shall include acts of war, terrorism, hijacking, acts of sabotage, unlawful seizure of aircraft and civil commotion.
2. Air carriers and aircraft operators shall ensure that insurance cover exists for each and every flight, regardless of whether the aircraft operated is at their disposal through ownership or any form of lease agreement, or through joint or franchise operations, code-sharing or any other agreement of the same nature.
3. This Regulation is without prejudice to the rules on liability as arising from:
— international Conventions to which the United Kingdom is party, and
— ...
— the law of England and Wales, Scotland or Northern Ireland.
Article 5 

1. Air carriers and, when so required, aircraft operators, as referred to in Article 2, shall demonstrate compliance with the insurance requirements set out in this Regulation by providing the UK competent authority with a deposit of an insurance certificate or other evidence of valid insurance.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. In exceptional cases of insurance-market failure, the Secretary of State may, by regulations, make provision for paragraph 1 to apply with modifications.
Article 6 

1. For liability in respect of passengers, the minimum insurance cover shall be 250 000 SDRs per passenger. However, in respect of non-commercial operations by aircraft with a MTOM of 2 700 kg or less, the Secretary of State may, by regulations, set a lower level of minimum insurance cover, provided that such cover is at least 100 000 SDRs per passenger.
2. For liability in respect of baggage, the minimum insurance cover shall be 1 288 SDRs per passenger in commercial operations.
3. For liability in respect of cargo, the minimum insurance cover shall be 22 SDRs per kilogram in commercial operations.
4. Paragraphs 1, 2 and 3 shall not apply with respect to flights over the territory of the United Kingdom carried out by non-UK air carriers and by aircraft operators using aircraft registered outside the United Kingdom which do not involve a landing on, or take-off from, the territory of the United Kingdom.
5. The Secretary of State may, by regulations, amend the values referred to in paragraphs 1, 2 and 3 of this Article where amendments to the relevant international agreements make this necessary.
Article 7 

1. In respect of liability for third parties, the minimum insurance cover per accident, for each and every aircraft, shall be:

Category MTOM(kg) Minimum insurance(million SDRs)
1 < 500 0,75
2 < 1000 1,5
3 < 2700 3
4 < 6000 7
5 < 12000 18
6 < 25000 80
7 < 50000 150
8 < 200000 300
9 < 500000 500
10 ≥ 500000 700If at any time insurance cover for damage to third parties due to risks of war or terrorism is not available to any air carrier or aircraft operator on a per-accident basis, such air carrier or aircraft operator may satisfy its obligation to insure such risks by insuring on an aggregate basis. The UK competent authority shall closely monitor the application of this provision in order to ensure that such aggregate is at least equivalent to the relevant amount set out in the table.
2. The Secretary of State may, by regulations, amend the values referred to in paragraph 1 of this Article where amendments to the relevant international agreements make this necessary.
Article 8 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 8a 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 9 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 9A 

(1. Regulations under this Regulation may—
(a) make consequential, supplementary, incidental, transitional, transitory or saving provision;
(b) make different provision for different purposes.
(2. Regulations under this Regulation are to be made by statutory instrument.
(3. A statutory instrument containing regulations under this Regulation may not be made unless a draft of the statutory instrument containing them has been laid before Parliament and approved by a resolution of each House of Parliament.
Article 10 

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Upon request, the CAA shall submit information on the application of this Regulation to the Secretary of State.
Article 11 
This Regulation shall enter into force twelve months following the date of its publication in the Official Journal of the European Union.
...