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Transport

Limits of Liability in Air Carriage to Increase

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Legal news
calendar 20 December 2019
globus Denmark

The Montréal Convention, which Denmark, Norway and Sweden all are parties to, governs civil liability for air carriage. The rules concerning the limits of such liability are now set to be revised.

The International Civil Aviation Organization (ICAO), which oversees the administration of the convention, has proposed the change. According to the proposal, the limits of liability will increase by 13.9 pct. The limits are based on the accumulated rate of inflation since 2008 when the limits were last increased.

The limits will be changed as follows:

 

The International Civil Aviation Organization (ICAO), which oversees the administration of the convention, has proposed the change. According to the proposal, the limits of liability will increase by 13.9 pct. The limits are based on the accumulated rate of inflation since 2008 when the limits were last increased.

The limits will be changed as follows:

 

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Mads

Poulsen

Partner

Aage

Krogh

Partner

Lars

Rosenberg Overby

Partner
Montreal Convention of 1999 Original limits (SDR) Revised limits (SDR) 30 December 2009 Revised limits (SDR) 28 December 2019
Personal injury

100 000

113 100

128 821

Delay

4 150

4 694

5 346

Checked baggage

1 000

1 131

1 288

Cargo per kg.

17

19

22

The revision of the limits will enter into force on 28 December 2019. For the change to enter into full effect, however, it must be incorporated into national law. 

This can be expected within a reasonably short time.

What does this mean to air carriers and their insurers?

The revision leads to an increase of air carriers’ and freight forwarders’ exposure. Air carriers must inform their staff and coordinate the implementation of the change with their partners including their agents and freight forwarders. It may also be necessary to review contracts with, for example, third parties and insurance policies that refer to specific limits of liability.

The revision of the limits will enter into force on 28 December 2019. For the change to enter into full effect, however, it must be incorporated into national law. 

This can be expected within a reasonably short time.

What does this mean to air carriers and their insurers?

The revision leads to an increase of air carriers’ and freight forwarders’ exposure. Air carriers must inform their staff and coordinate the implementation of the change with their partners including their agents and freight forwarders. It may also be necessary to review contracts with, for example, third parties and insurance policies that refer to specific limits of liability.

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The team

Aage

Krogh

Partner

Ida

Thune Ikkala

Legal advisor

Joachim

Sieverts Nielsen

Associate

Lars

Rosenberg Overby

Partner

Mads

Poulsen

Partner