96/02
24 September 2002
AVIATION INSURANCE SCHEME EXTENDED UNTIL END OF OCTOBER
The Government's Troika insurance scheme, which insures UK aviation for third party war and terrorism risks, is to be extended from 30th September until 31st October 2002. There will be no change in premiums, or the terms and conditions under which the scheme currently operates.
The extension is to allow UK airlines to continue to negotiate an adequate commercial solution, and to take into account continuing discussions on the future of government schemes in Europe.
It remains the Government's objective to withdraw from the aviation insurance market once commercial solutions are fully available.
Notes to Editors:
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The ?Troika? scheme was set up to ensure that UK airlines could continue to fly in the wake of the terrorist attacks on 11 September, and was due to expire at midnight on 30 September.
- The brokers, Aon, Marsh and Willis, set up an insurance company - Troika - which provides insurance policies under the scheme to fill the gap in commercial cover. The policies are administered by Global Aerospace.
- The airlines scheme covers airlines with a Civil Aviation UK operating license or transport licence. Service providers to the airline industry and airports are covered for their operations in the UK. By agreement with the Isle of Man, IOM airlines and service providers are also included on a risk-sharing basis.
- Cover for service providers is provided by Troika at a commercially based premium following the example of the existing Pool Re scheme which provides insurance cover for terrorist attacks on buildings in Britain. The objective is that the insurance industry should provide insurance capacity at appropriate market rates as quickly as possible.
- Media enquiries should be directed to, HM Treasury Press Office, tel 020 7270 5238.