Following the shooting down of Malaysia Airlines Flight 17 (MH17) over Ukraine, a growing number of insurance companies, including those in the Netherlands and Malaysia like AIA and Allianz Global Corporate & Specialty, have promised to waive the “act of war” exclusion in private policies for the victims, a potentially costly gesture totaling tens of millions of dollars. Despite this, the airline’s lead reinsurer, Allianz SE, faces a much higher bill for the aircraft’s loss and liability under the Montreal Convention, which mandates a minimum of $170,000 per passenger. Aviation litigation partner Steven Marks of Podhurst Orseck stated that he does not believe the airline can escape full liability, as they will likely be unable to establish “freedom from fault” under the convention.
Read the full article: OUTLET
Originally published by Jake Maxwell Watts, Celine Fernandez & Robert Wall | Aug 6, 2014 | The Wall Street Journal
