EU states to underwrite air insurance
A host of European states may follow Britain’s lead in introducing emergency measures to save airlines from collapse.
The move followed a decision from commercial insurers that they would no longer be willing to take on unlimited third party insurers because of the risk factor.
Earlier this week, insurance companies warned that they were cancelling war liability cover from midnight on Monday, 24 September.
In effect, the British Government has stepped in as an insurer of last resort on British airlines.
From September 24, the British Government will underwrite third party war and terrorism liabilities.
Other EU states are now expected to follow suit in a bid to keep airlines flying after a meeting of EU finance ministers in Belgium yesterday.
