ICAO APPROVES AVIATION WAR RISK INSURANCE PLAN

ICAO APPROVES AVIATION WAR RISK INSURANCE PLAN    The Council of the International Civil Aviation Organization has approved plans for a global aviation war risk insurance scheme to cover risks left open by the withdrawal of commercial insurance coverage following Sept. 11.
   Assad Kotaite, president of the ICAO council, said the objectives of the global scheme are to allow air transport to continue under reasonable financial conditions and spread aviation war risk and related risks among all parties, including participating states.
   The scheme is designed to provide adequate insurance coverage in the short and medium-term, while allowing private insurance companies to gradually come back into the market.
   Once implemented, the scheme would provide third-party coverage for airline operators and other parties involved in civil aviation, through a non-profit insurance entity backed by state guarantees. A pool to meet claims would be built up primarily through premiums and investment income earned on premiums, ICAO said.
   Under the scheme, coverage would be capped at $1.5 billion per insured, and per occurrence, for claims in excess of the $50 million currently available from the private insurance market. The scheme's implementation will require any number of ICAO contracting states representing 51 percent of annual contribution rates to ICAO must agree to take part as guarantors of last resort. States must notify ICAO by July 19 of their intent to take part in the scheme.
'    As a specialized agency of the United Nations, the ICAO sets international standards and regulations necessary for the safety of air transport in all fields of aviation among its 187 contracting states.