ICAO - Rise in Liability Limits

Article 24 of the Montreal Convention (formally the Convention for the Unification of Certain Rules for International Carriage) provides for regular reviews of the maximum limits of liability. The auditing process is based on an indicator that takes into account the cumulated inflation rate since the Montreal Convention became effective in May 1999.

The ICAO (International Civil Aviation Organization) report found that an increase of the Convention’s maximum liability limits by 13,1% were necessary to compensate for inflation effects. As the majority of countries that have signed the Montreal Convention did not register their disapproval within a given period of time, the change of the  maximum liability limits will come into effect on 30 December 2009.

Articles 21 and 22 of  the liability limits for airlines in respect of damages to passengers, baggage, cargo or in respect of monetary damages caused by delayed flights. The limits are provided in SDR (Special Drawing Rights - SDRs are defined by the International Monetary Fund in terms of a basket of major currencies used in international trade and finance).

The following is a brief overview of current and new liability limits in the Montreal Convention:

Liability for cargo
Art. 22, Para. 3 Montreal Convention
per kilogrammme in case of destruction, loss, damage or delay
New: SDR 19 (formerly: SDR 17)

Liability for baggage
Art. 22, Para. 2 Montreal Convention
in case of destruction, loss, damage or delay of baggage; limit per passenger
New: SDR 1,131 (formerly: SDR 1,000)

Liability in case of delayed flights when carrying passengers
Art. 22, Para. 1 Montreal Convention
per passenger
New: SDR 4,694 (formerly: SDR 4,150)

Liability in case of death of or bodily injury to passengers
Art. 22, Para. 1 Montreal Convention
per passenger
New: SDR 113,100 (formerly: SDR 100,000)

The policies of our clients will be adjusted within the next year.  You as our clients are of course insured for the new liability limits of the Montreal Convention with effect from 30 December 2009. Claims to which the higher limits apply and which are covered under the Delvag Aviation Third Party and Passenger Legal Liability Insurance Conditions will certainly be dealt with according to the new regulations.

In case you are not yet a client of ours, please contact your broker or insurer.

Please consider that this document is not intended to give a complete overview. We are strictly not responsible for any error or omission.