Canadian Aviation Regulations

606.02 (1) This section applies to every owner of an aircraft, other than a remotely piloted aircraft, that is registered in Canada or registered under the laws of a foreign state and operated in Canada, if the owner is not required to subscribe to liability insurance in respect of the aircraft under section 7 of the Air Transportation Regulations.

(2) Subject to subsection (3), none of the following aircraft owners shall operate an aircraft unless, in respect of every incident related to the operation of the aircraft, the owner has subscribed for liability insurance covering risks of injury to or death of passengers in an amount that is not less than the amount determined by multiplying $300,000 by the number of passengers on board the aircraft:

• (a) an air operator;

• (b) the holder of a flight training unit operator certificate; or

• (c) the operator of a balloon in which fare-paying passengers are carried on board pursuant to Subpart 3.

(3) The insurance coverage referred to in subsection (2) need not extend to any passenger who

• (a) is an employee of an owner referred to in paragraph (2)(a), (b) or (c), if workers’ compensation legislation governing a claim for damages against the owner by the employee is applicable; or

• (b) is carried on board the aircraft for the purpose of conducting a parachute descent, where the air operator has posted a readily visible notice to inform passengers, before embarking, that there is no insurance coverage for parachutists.

(4) No aircraft owner not referred to in paragraph (2)(a), (b) or (c) shall operate an aircraft of more than 2 268 kg (5,000 pounds) maximum permissible take-off weight unless the owner has, in respect of the aircraft, subscribed for liability insurance covering risks of injury to or death of passengers, other than passengers carried on board that aircraft for the purpose of conducting a parachute descent, in an amount not less than the amount determined by multiplying $300,000 by the number of passengers on board the aircraft.

(5) No aircraft owner referred to in paragraph (2)(a), (b) or (c) shall operate an aircraft unless, in respect of every incident related to the operation of the aircraft, the owner has subscribed for liability insurance covering risks of public liability in an amount that is not less than

• (a) $1,000,000, where the maximum permissible take-off weight of the aircraft is not greater than 3 402 kg (7,500 pounds);

• (b) $2,000,000, where the maximum permissible take-off weight of the aircraft is greater than 3 402 kg (7,500 pounds) but not greater than 8 165 kg (18,000 pounds); and

• (c) where the maximum permissible take-off weight of the aircraft is greater than 8 165 kg (18,000 pounds), $2,000,000 plus an amount determined by multiplying $150 by the number of pounds by which the maximum permissible take-off weight of the aircraft exceeds 8 165 kg (18,000 pounds).

(6) No aircraft owner referred to in paragraph (2)(a), (b) or (c) shall, in order to comply with subsections (2), (4) and (5), subscribe for any liability insurance that contains an exclusion or waiver provision that reduces the insurance coverage for any incident below the applicable minimum determined pursuant to those subsections, unless that provision

• (a) is a standard exclusion clause adopted by the international aviation insurance industry that applies in respect of

  • (i) war, hijacking and other perils,

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

  • (iii) radioactive contamination;

• (b) is in respect of a chemical drift;

• (c) includes a statement that the insurance does not apply in respect of liability assumed by the owner under any contract or agreement unless the liability would have attached to the owner even in the absence of such a contract or agreement; or

• (d) includes a statement that the policy is void if the owner has concealed or misrepresented any material fact or circumstance concerning the insurance or the subject thereof or if there is any fraud, attempted fraud or false statement by the owner touching any matter relating to the insurance or the subject thereof, either before or after an incident.

(7) An aircraft owner referred to in paragraph (2)(a), (b) or (c) may comply with subsections (2), (4) and (5) by subscribing for comprehensive single limit liability insurance that consists of a single policy or a combination of primary and supplementary policies.

(8) No aircraft owner not referred to in paragraph (2)(a), (b) or (c) shall operate an aircraft unless, in respect of every incident related to the operation of the aircraft, the owner has subscribed for liability insurance covering risks of public liability in an amount that is not less than

• (a) $100,000, where the maximum permissible take-off weight of the aircraft is 1 043 kg (2,300 pounds) or less;

• (b) $500,000, where the maximum permissible take-off weight of the aircraft is greater than 1 043 kg (2,300 pounds) but not greater than 2 268 kg (5,000 pounds);

• (c) $1,000,000, where the maximum permissible take-off weight of the aircraft is greater than 2 268 kg (5,000 pounds) but not greater than 5 670 kg (12,500 pounds);

• (d) $2,000,000, where the maximum permissible take-off weight of the aircraft is greater than 5 670 kg (12,500 pounds) but not greater than 34 020 kg (75,000 pounds); and

• (e) $3,000,000, where the maximum permissible take-off weight of the aircraft is greater than 34 020 kg (75,000 pounds).

(9) Subject to subsection (10), no owner or operator of an aircraft shall operate the aircraft unless there is carried on board the aircraft proof that liability insurance is subscribed for in accordance with this section.

(10) A balloon may be operated without the proof of insurance referred to in subsection (9) being carried on board if that proof is immediately available to the pilot-in-command

• (a) prior to commencing a flight; and

• (b) on completion of a flight.