Air Transportation Regulations

7 (1) No air carrier shall operate a domestic service or an international service unless, for every accident or incident related to the operation of that service, it has

• (a) liability insurance covering injuries sustained by passengers while on board the aircraft engaged in the service or while embarking or disembarking the aircraft or death of passengers in an amount that is not less than the amount determined by multiplying $595,000, adjusted in accordance with section 7.1, by the number of passenger seats on board the aircraft engaged in the service; and

• (b) third party liability insurance in an amount that is not less than

  • (i) where the MCTOW of the aircraft engaged in the service is not greater than 3 402 kg, $1,985,000, adjusted in accordance with section 7.1,

  • (ii) where the MCTOW of the aircraft engaged in the service is greater than 3 402 kg but not greater than 8 165 kg, $3,970,000, adjusted in accordance with section 7.1, and

  • (iii) where the MCTOW of the aircraft engaged in the service is greater than 8 165 kg, an initial amount of $3,970,000, adjusted in accordance with section 7.1, plus an amount, determined by multiplying $655, adjusted in accordance with section 7.1, by the number of kilograms, rounded to the nearest whole number, by which the MCTOW of the aircraft exceeds 8 165 kg.

(2) The insurance coverage required by paragraph (1)(a) need not extend to any passenger who is an employee of an air carrier if workers’ compensation legislation governing a claim for damages against that air carrier by the employee is applicable.

(3) No air carrier shall take out liability insurance to comply with subsection (1) that contains an exclusion or waiver provision reducing insurance coverage for any accident or incident below the applicable minima determined pursuant to that subsection, unless that provision

• (a) consists of standard exclusion clauses adopted by the international aviation insurance industry dealing with

  • (i) war, hijacking and other perils,

  • (ii) noise and pollution and other perils, or

  • (iii) aviation radioactive contamination;

• (b) [Repealed, SOR/2019-176, s. 3]

• (c) is to the effect that the insurance does not apply to liability assumed by the air carrier under any contract or agreement unless such liability would have attached to the air carrier even in the absence of such contract or agreement; or

• (d) is to the effect that the entire policy shall be void if the air carrier has concealed or misrepresented any material fact or circumstance concerning the insurance or the subject thereof or if there has been any fraud, attempted fraud or false statement by the air carrier touching any matter relating to the insurance or the subject thereof, whether before or after a loss.

(4) An air carrier may have a comprehensive single limit liability coverage where liability risks are covered by a single policy or a combination of primary and excess policies, but no single limit liability coverage of that air carrier shall be for an amount that is less than the applicable combined insurance minima determined pursuant to paragraphs (1)(a) and (b).