November 1, 2002 by Canadian Underwriter
The U.K. government says it will not extend its insurance backstop coverage scheme for the airline industry against third-party terrorism and war liability risks beyond the recently past October 31 expiry date. The U.K. government believes that sufficient private sector insurance options are now available in the market.
The U.K. government decision follows on a recent ruling by the European Commission against member states extending terrorism coverage for national airlines beyond the end of October. The U.S. government announced on October 16 that it will extend its coverage for airlines by another 60 days. The Canadian government acted similarly on September 17, when its existing coverage expired.