NCAA URGES AIRLINES OPERATORS TO INSURE PASSENGERS WITH $100,000

The Nigerian Civil Aviation Authority (NCAA) has disclosed that airline operators without the necessary insurance policy will be liable to a fine of One Hundred Thousand US Dollars($100,0000) per passenger.

In addition, such organization risks the refusal or suspension of its operating license.
These were disclosed by the Nigerian Civil Aviation Authority(NCAA) at the one-day seminar on Aviation Insurance recently.

The Director General of the Nigerian Civil Aviation Authority (NCAA) told stakeholders in the industry that the Civil Aviation Act, 2006 which domesticated the Montreal Convention made this compulsory for airline operators.

Section 74 of the Act says among others that:

Any carrier operating air transport services to, from or within Nigeria, or aerodrome operator, aviation fuel supplier, or any provider of ground handling services, meteorological services, air traffic control services, aircraft maintenance services, or provider of such other class of allied service as the Authority may from time to time determine in writing shall maintain adequate insurance covering its liability under this Act and also its liability towards compensation for damages that may be sustained by third parties for an amount to be specified in regulations made by the Authority.

Absence of such insurance shall be sufficient reason for refusal, suspension or revocation of the permission to operate the air transport service or services in question.

Any person having a duty to maintain adequate insurance pursuant to the provision of subsection (1) of this section shall make quarterly returns to the Authority evidencing that such adequate insurance is maintained and that all conditions necessary to create an obligation on the insurer to provide indemnity in the event of a loss have for the time being been fulfilled.

Any Carrier operating air transport services to, from or within Nigeria, or aerodrome operator, aviation fuel supplier, or any provider of ground services, air traffic control services, aircraft maintenance services, who contravenes the provisions of subsections (1) and (3) of this section, shall be guilty of an offence and liable on conviction to a fine of not less than Ten million Naira and its Principal Officers shall be liable to imprisonment for a term of not less than two years.

Demurin who was represented by the Director of Airworthiness, Mr. Patrick Ekunwe said “NCAA established and inaugurated in 2010 the NCAA/National Insurance Commission {NAICOM} Aviation Insurance Committee to ensure strict compliance with the provisions of the Civil Aviation Act, 2006.

“The Committee is also responsible for recommending insurance liability benchmarks for ground handling, airports, air navigation and other allied services providers in the aviation industry”

He explained that the importance of insurance could not be over emphasized considering the various crashes that occurred in the aviation industry in the past adding that during those periods it was difficult for airline operators to compensate the families of the dead victims .

Demurin said the operators are now to apply the updated Montreal Convention of 1999 which was domesticated in the Civil Aviation Act of 2006 which stipulated a compensation of not less than $100,000, instead of the Warsaw Convention of 1929 which stipulated $10,000 as compensation to victim of air disaster.

Meanwhile, the Commissioner for Insurance Mr. Fola Daniel emphasized that the collaboration between the National Insurance Commission (NAICOM) and the Nigerian Civil Aviation Authority (NCAA), (NCAA/NAICOM) was focused in restoring public confidence to insurance through ensuring prompt settlement of all genuine claims.

“Beyond prompt settlement, the Commission will insist that the flying public are adequately protected at all times, hence we will continue to collaborate with NCAA”he stressed.