The Government has today before the King in Council put forward a proposal for a temporary stately third party insurance for Norwegian aircraft and airports covering damages caused by acts of war and terrorism.

According to this proposal the Ministry of Transport and Communications is authorised on behalf of the State to enter into agreements regarding stately third party insurance covering Norwegian registered SAS and other aircraft which are being operated by airlines and helicopter companies licensed in Norway. The third party insurance will cover only damages caused by acts of war and terrorism, and furthermore, the liability is limited to cover only damages to third party. This means i.a. that passengers and employees are not covered by this temporary stately third party insurance.

The proposal also include the possibility for the State to enter into such agreements with Norwegian airports that are not covered by the general State liability.

The agreements between the Ministry of Transport and Communications and the airlines and helicopter companies licensed in Norway, possibly also with certain airports, will be entered into and the following conditions:

• Advance promise of stately third party insurance will be given up to 1,750 million USD per damage. The stately third party insurance covering each company, with the exception of airports, shall be limited to the re-establishment of the loss of the former war-risk liability and is given on the same terms.
• Companies entering into agreements on stately third party insurance shall pay insurance premium.
• The stately third party insurance will be effective up to 30 days as from 25 September 2001. The Ministry of Transport and Communications is empowered to prolong this insurance further for another period of up to 30 days.

The Government’s proposal refers to the fact that the former war-risk liabilities for damages to third party that most of the airlines and airports were covered by, were terminated with effect as of 24 September 2001 at midnight. This caused the necessity to act swiftly and to put up a temporary scheme to fill the gap caused by the disappearance of this type of liability. Consequently, with the proviso of the endorsement by the Storting (the Norwegian Parliament), the Government decided on the 24 September 2001 to enter into agreements with airlines and helicopter companies licensed in Norway to fill the gap caused by the disappearance of the companies’ war-risk insurance covering damages to third party which are caused by acts of war and terrorism. The total coverage is estimated to approximately 270 billion USD.

Press release in Norwegian