60/02
24 June 2002
AVIATION INSURANCE SCHEME EXTENDED FOR A FURTHER 60 DAYS
The Government backed Troika aviation insurance scheme has been extended from 30 June to 29 August.
In recognition of the improving availability of commercial cover for third party war and terrorism risks, and the undesirability of government schemes acting in competition with the market, the terms of Troika for cargo airlines and aviation service providers will change. They will be expected to buy the first US$150 million of cover commercially. The Government is also reviewing a rise in premiums in line with changes made last month for passenger airlines, which is expected to come into effect from 7 July. Terms and conditions for passenger airlines are unchanged.
The Government's aim remains to withdraw completely from the aviation insurance market.
Notes to editors
1. Media enquiries should be directed to HM Treasury press office, tel. 020 7270 4420.