Civil Aviation (Carriers' Liability) Regulations (Amendment) (Cth)

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Statutory Rules 1995

No. 366 1

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Civil Aviation (Carriers’ Liability) Regulations 3(Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and under section 4 of the Acts Interpretation Act 1901, make the following Regulations under the Civil Aviation (Carriers’ Liability) Act 1959.

Dated 29 November 1995.

 BILL HAYDEN

 Governor-General

By His Excellency’s Command,

LAURIE BRERETON

Minister for Transport

____________

1.   Commencement

1.1   These Regulations commence on the same day as does Part IVA of the Civil Aviation (Carriers’ Liability) Act 1959.

2.   Amendment

2.1   The Civil Aviation (Carriers’ Liability) Regulations are amended as set out in these Regulations.

3.   New regulations 5, 6, 7, 8, 9, 10, 11 and 12

3.1   After regulation 4, insert:

Period for production of evidence of insurance

 “5.(1) For the purposes of subsection 41C (1) of the Act, and subject to subregulations (2) and (3), the period that may be set out in a notice of the kind referred to in that subsection is 14 days beginning at the end of the day on which the carrier receives the notice.

 “(2) If the Minister has received a notice from an insurer under regulation 10:

  • (a)

    the period that may be set out in a notice under subsection 41C (1) of the Act is 3 days beginning at the end of the day on which the carrier receives the notice under that subsection; and

  • (b)

    the notice must state that the Minister has received a notice under regulation 10.

 “(3) If the Minister believes that a contract of insurance may have ceased to be in force, or may no longer meet a prescribed requirement:

  • (a)

    the period that may be set out in a notice under subsection 41C (1) of the Act  in relation to that contract of insurance is 1 day beginning at the end of the day on which the carrier receives the notice; and

  • (b)

    the notice must include a statement that the Minister has reason to believe that the contract of insurance may have ceased to be in force or no longer meets a prescribed requirement.

[NOTE: See s. 163 of the Evidence Act 1995 concerning the date on which a notice sent by post by a Commonwealth agency is presumed to be received.]

Form of evidence of insurance

 “6. The Minister may direct in a notice under subsection 41C (1) of the Act that the carrier produce evidence that a contract of insurance that meets the prescribed requirements is in force in any of the following forms:

  • (a)

    a certificate by an insurer that the insurance is in force;

  • (b)

    a contract of insurance;

  • (c)

    written receipt of payment of premium for the insurance;

  • (d)

    any other form that the Minister considers reasonable and appropriate in the particular case.

Prescribed requirements in relation to a contract of insurance

 “7.(1) For the purposes of paragraph 41C (2) (b) of the Act, it is a prescribed requirement in relation to a contract of insurance:

  • (a)

    that the insurer is authorised under section 23 or 24 of the Insurance Act 1973 to conduct insurance business in Australia; or

  • (b)

    that:

    • (i)

      the insurer is permitted or authorised under the law of a foreign country to carry on insurance business; and

    • (ii)

      the Minister is satisfied that the requirements imposed on the insurer under that law are similar to or consistent with requirements under that Act.

 “(2) For the purposes of subparagraph (1) (b) (ii), the Minister is taken to be satisfied that the requirements imposed on an insurer under the law of a foreign country are similar to or consistent with requirements under the Insurance Act 1973 unless the Minister has published in the Gazette, in relation to that country, a notice of the kind referred to in regulation 8.

Notice in relation to foreign law

 “8.(1) If the Minister is not satisfied that the law of a foreign country imposes similar requirements on an insurer to requirements under the Insurance Act 1973, he or she may publish in the Gazette a notice stating that he or she is not so satisfied.

 “(2) A notice takes effect 28 days after it is published.

Prescribed exclusions of insurer’s liability

 “9.(1) A contract of insurance that indemnifies the insured carrier against personal injury liability may exclude liability by adopting a standard exclusion clause mentioned in subregulation (2).

 “(2) The standard exclusion clauses are:

  • (a)

    ‘Aviation Radioactive Contamination Exclusion Clause (General)’ (also called ‘Aviation 38’), as that clause is commonly in use at the commencement of this regulation; or

  • (b)

    ‘Noise and Pollution and Other Perils Exclusion Clause’ (also called ‘AVN. 46B’) as that clause is commonly in use at the commencement of this regulation; or

  • (c)

    ‘War, Hijacking and Other Perils Exclusion Clause (Aviation)’ (also called ‘AVN. 48B’) as that clause is commonly in use at the commencement of this regulation.

[NOTE: The 3 exclusion clauses, as in use at the commencement of subregulation 9 (1), are set out, for information, as note 2 of the endnotes.]

 “(3) A contract of insurance that indemnifies the insured carrier against personal injury liability may exclude liability in respect of an employee of the carrier who is travelling in the course of his or her duties as an employee.

 “(4) A contract of insurance that indemnifies an insured carrier against personal injury liability may exclude liability in respect of a passenger who travels on an aircraft operated by the carrier that is not of a notified type in relation to the contract of insurance.

 “(5) For the purposes of subregulation (4), a type of aircraft is a notified type in relation to a contract of insurance if:

  • (a)

    the insurer has given the Minister a notice in writing to the effect that the insurer is prepared to indemnify the insured carrier in relation to personal injury liability arising out of the operation by the insured carrier of aircraft of that type; and

  • (b)

    the type is endorsed on the contract of insurance.

Notice of cancellation, etc., of contract of insurance

 “10.(1)The insurer under an acceptable contract of insurance must give the Minister written notice of any of the following events:

  • (a)

    the lapsing of the contract;

  • (b)

    the expiration of the contract;

  • (c)

    cancellation of the contract by the insurer;

  • (d)

    alteration of the contract in a way that will result in the contract no longer satisfying a prescribed requirement.

 “(2) The insurer must give the notice at least 3 business days before the event is expected to happen.

 “(3) The insurer must give the Minister written notice of a terminating event within 3 business days after the insurer becomes aware, or ought reasonably to have become aware, of the event.

 “(4) In subregulation (3):

‘terminating event’ means an act of the carrier that has as a result the contract ceasing to be in force before the end of the term set out in the contract.

Effect of failure to give notice under regulation 10

 “11.(1)If, in relation to a contract of insurance, an event described in paragraph 10 (1) (a), (b), (c) or (d) occurs, but the insurer does not give the Minister notice under regulation 10 at least 3 days before the event happens, then, despite anything in the contract of insurance, the contract continues in force until:

  • (a)

    the time when the carrier obtains from the same or another insurer an acceptable contract of insurance; or

  • (b)

    if the insurer subsequently gives the notice—3 business days after the Minister receives the notice; or

  • (c)

    if the insurer does not give the notice before the end of 3 months after the day the event happens—the end of that period.

 “(2)If, in relation to a contract of insurance, a terminating event described in subregulation 10 (3) occurs, but the insurer does not give the Minister notice under regulation 10 in accordance with that subregulation, then, despite anything in the contract of insurance, the contract continues in force until:

  • (a)

    the time when the insured carrier obtains from the same or another insurer an acceptable contract of insurance; or

  • (b)

    if the insurer subsequently gives the notice—3 business days after the Minister receives the notice; or

  • (c)

    if the insurer does not give the notice before the end of 3 months after the day the event happens—the end of that period.

Return of certificate

 “12.(1) If the Minister is satisfied that:

  • (a)

    a certificate issued under subsection 41C (7) of the Act in relation to an acceptable contract of insurance requires to be corrected; or

  • (b)

    the acceptable contract of insurance in relation to which a certificate was issued is no longer in force;

the Minister may by written notice to the carrier require the carrier to return the certificate.

 “(2) A carrier must comply with a notice given under subregulation (1).”.

____________________________________________________________

NOTES

1. Notified in the Commonwealth of Australia Gazette on 6 December 1995.

2. The texts of the standard exclusion clauses referred to in subregulation 9 (1) are as follows:

AVIATION RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE (GENERAL) (Aviation 38)

“(1)

The contract of insurance does not cover

  • (a)

    loss or destruction of, or damage to, any property or any loss or expense resulting therefrom

  • (b)

    any legal liability of whatsoever nature.

directly or indirectly caused or contributed to by or arising from ionising radiations or contamination by radioactivity from any source whatsoever.

“(2)

Loss, destruction, damage, expense or legal liability which, but for the provisions of paragraph (1) of this Clause, would be covered by this policy, and is directly or indirectly caused or contributed to by or arising from ionising radiations or contamination by radioactivity from any radioactive materials in course of carriage as cargo under International Air Transport Association regulations, shall (subject to all the other provisions of this policy) be covered, provided that:

  • (a)

    it shall be a condition precedent to the liability of the Underwriters that the carriage of any radioactive materials shall in all respects comply with the current regulations issued by the International Air Transport Association relating to the carriage of restricted articles by air;

  • (b)

    the loss, destruction, damage, expense or legal liability shall have occurred or arisen during the period of this policy, and any claim by the Assured against the Underwriters or by any claimant against the Assured shall have been made within three years after the date of the occurrence giving rise to the claim;

  • (c)

    in the case of any claim by virtue of this paragraph (2) under the Hull section of this policy, the level of contamination shall have exceeded the maximum permissible level set out in the following scale:-

Emitter

Maximum permissible level of non-fixed radioactive surface contamination (Averaged over 300cm2)

Alpha emitters in Group 1 of the IAEA list of radio isotopes (IAEA Health and Safety Series No. 6)

Not exceeding 10-5 microcuries per cm2

All other substances

Not exceeding 10-4 microcuries per cm2

 and

  • (d)

    the cover afforded by this paragraph (2) may be cancelled at any time by the Underwriters giving seven days’ notice of cancellation.

NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE (AVN. 46B)

“1.

This Policy does not cover claims directly or indirectly occasioned by, happening through, or in consequence of:-

  • (a)

    noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,

  • (b)

    pollution and contamination of any kind whatsoever,

  • (c)

    electrical and electromagnetic interference,

  • (d)

    interference with the use of property;

unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.

“2.

With respect to any provision in the Policy concerning any duty of Underwriters to investigate or defend claims, such provision shall not apply and Underwriters shall not be required to defend:

  • (a)

    claims excluded by Paragraph 1 or

  • (b)

    a claim or claims covered by the Policy when combined with any claims excluded by  Paragraph 1 (referred to below as “Combined Claims”).

“3.

In respect of any Combined Claims, Underwriters shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:

  • (i)

    damages awarded against the Insured and

  • (ii)

    defence fees and expenses incurred by the Insured.

“4.

Nothing in this clause shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

WAR, HIJACKING AND OTHER PERILS EXCLUSION CLAUSE AVIATION) (AVN. 48B)

 “This Policy does not cover claims caused by

  • (a)

    War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.

  • (b)

    Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

  • (c)

    Strikes, riots, civil commotions or labour disturbances.

  • (d)

    Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

  • (e)

    Any malicious act or act of sabotage.

  • (f)

    Confiscation, nationalisation seizure, restraint, detention, appropriation, requisition for title, or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

  • (g)

    Hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.

“Further this policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).”.

3. Statutory Rules 1991 No. 6 as amended by 1994 No. 356.

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