Civil Aviation (Insurance) (Amendment) (EU Exit) Regulations 2020

Lord Rosser Excerpts

Thursday 18th June 2020 Lords Chamber

[Lord Rosser (Lab) [V]]

I thank the Minister and her officials for the virtual meeting on these regulations on Tuesday, and the Minister specifically for her explanation of the content and purpose of this draft SI, to which we are not opposed.

EU regulation 785/2004 establishes minimum insurance requirements for air carriers and aircraft operators in respect of passengers, baggage, cargo and third parties. It also requires that air carriers and aircraft operators have insurance which covers specific risks, including acts of war, terrorism, hijacking, acts of sabotage, unlawful seizure of aircraft, and civil commotion. The regulation will be retained in our law at the end of the transition period and the Minister has already been asked more than once about insurance cover for Covid-19 type pandemics—I am sure she will respond to that point.

As a result of recent amendments made to EU regulation 785/2004, these further draft regulations are needed to ensure that the terms of that regulation, as amended, continue to operate effectively in our domestic law after the end of the transition period. This is achieved by replacing Commission powers with powers for Secretary of State for Transport to amend the minimum insurance requirements by regulations which will be subject to the affirmative resolution procedure. As I understand it, the 1999 Montreal Convention provided for airlines to be responsible for compensation in the case of death and injury to passengers, and to be adequately insured to cover any liabilities, and the EU minimum insurance requirements stemmed from that. First, I ask the Government to confirm, as I believe the Minister said, that these regulations make no changes in the present minimum insurance requirements that apply in the UK on the day after the end of the transition period, apart from replacing Commission powers with powers for the Secretary of State.

I wish to raise a couple of other points. Will UK air carriers and aircraft operators have to have, at all times in the future, minimum insurance levels that are not below EU minimum requirements in order to be able to fly to EU countries? If we wanted to, could we have minimum insurance requirements that are below EU minimum requirements and not put in jeopardy the ability of our air carriers and aircraft operators to fly to EU countries? The Government’s mantra is that at the end of the transition period we will have taken back control and be able to do what we want to do and not, as a member of the EU, be a party to EU legislation. What does this draft regulation enable us to take back control of, in practice and not just in theory? What have we been wanting to do but have been unable to do on minimum insurance requirements for air carriers and aircraft operators because we have been a member of the European Union?

The insurance requirements covered by these draft regulations are about providing cover for airline operators rather than consumers, including passengers. Can the Government say whether the minimum insurance requirements provided for in these draft regulations cover airline operators against legal proceedings for failing to reimburse fares for flights that were cancelled? On the face of it, these regulations offer no good news for passengers, of whom I am one, waiting far too long for such refunds. Nevertheless, I hope that the Government, in their response to this debate, will also take the opportunity to say what actual progress they have made in ensuring that airlines make the necessary arrangements to refund these fares promptly and not leave it for several months.

I will listen with interest to the Government’s response to the points made in the debate, including the issues raised by my noble friend Lord Blunkett and the noble Lord, Lord Blencathra.