Liability insurance of aircraft owners for losses inflicted upon third parties and passengers is categorised as a compulsory insurance under the provisions of the new Law on Compulsory Traffic Insurance.

Upon the adoption of the new Law, aircraft registration and renewal can be carried out after presenting the evidence of the contract for compulsory liability insurance.

Aircraft owner who is not obliged to annually register the aircraft has to conclude an insurance contract when obtaining the relevant operating licence.

Subject of insurance

Compulsory liability insurance of aircraft owners for loss inflicted upon third parties and passengers in connection with the use of aircraft due to:

  • death,
  • bodily injury,
  • health impairment,
  • damage to their property,
  • destruction of or damage to cargo and registered luggage.

For aircrafts that are not used for commercial purposes an insurance contract can be concluded with or without an insurance cover for damage to cargo and registered luggage.

Insurance contract also covers losses arising from war and terrorism risks, except for aircrafts with MTOM of up to 500kg, for which insurance can be written with or without such insurance cover.

Insurance agreement can be concluded for a definite period or for a particular trip.

Sum Insured

Sum Insured is the maximum liability of the insurer per occurrence for losses arising from the use of aircrafts and is expressed in SDR (special drawing rights – accounting unit determined by the International Monetary Fund).

The minimum Sum Insured per occurrence is determined by the government, at the suggestion of the National Bank of Serbia, and is applied pursuant to the statutory classification of aircrafts.

The minimum Sum Insured cannot be lower than:

1.for losses inflicted upon third parties:

  • for motor gliders with MTOM above 20 kg 10.000 SDR
  • for free balloons with crew 20.000 SDR
  • for aircrafts with MTOM:
    • less than 500 kg 750.000 SDR
    • less than 1.000 kg 1.500.000 SDR
    • less than 2.700 kg 3.000.000 SDR
    • less than 6.000 kg 7.000.000 SDR
    • less than 12.000 kg 18.000.000 SDR
    • less than 25.000 kg 80.000.000 SDR
    • less than 50.000 kg 150.000.000 SDR
    • less than 200.000 kg 300.000.000 SDR
    • less than 500.000 kg 500.000.000 SDR
    • 500.000 kg and more 700.000.000 SDR

2. for an individual passenger 250.000 SDR
3. for personal belongings of passengers in the aircraft’s cabin 1.000 SDR
4. for cargo and registered luggage per kg 17 SDR

If the aircraft is not used for commercial purposes:

  • insurance of cargo and registered luggage is optional;
  • minimum Sum Insured per passenger for aircrafts with MTOM of up to 2.700kg is 100.000 SDR.

The insurance does not cover loss or damage occurred in the following cases:

  • if the person operating the aircraft does not use the aircraft in accordance with its purpose;
  • if the person operating the aircraft does not have an operating licence of particular category, except during pilot training, pursuant to the training regulations;
  • if the licence of the person operating the aircraft has been suspended or any prohibitive measure have been imposed on him;
  • if the person is operating the aircraft while under the influence of alcohol, narcotics, i.e. prohibited drugs or other psychoactive substances;
  • if the person operating the aircraft caused any malicious damage;
  • if the loss occurred due to aircraft malfunction, and the person operating the aircraft has been aware of such circumstance;

Insurer’s liabilities

The insurer is obliged to establish the basis and amount of loss within 14 (fourteen) days from the claim receipt, and provide the claimant with evidence-supported indemnity proposal and effect the payment thereof.

In case of an incomplete claim, the insurer shall be obliged to inform the claimant in writing within 8 (eight) days from the claim receipt and ask him to complete the documentation.

If the insurer fails to determine the basis and amount of loss within 14 (fourteen) days, he shall be obliged to determine them within 45 (forty five) days from the receipt of claim related to damage to items, and 90 (ninety) days from the receipt of personal injury claim, and deliver an evidence-supported proposal and effect the indemnity payment within a further 14 (fourteen) days.

If the proposed indemnity is less than the requested amount by the claimant, the insurer is obliged to effect payment of the indisputable portion of his liability, the payment of which will not affect the right to claim the disputed portion of the indemnity.

Should the insurer establish there are no grounds for indemnification of damage, the insurer is obliged to inform the claimant thereof, in writing, within 8 days thereafter, and to provide an explanation.

Small claims are considered any claims the amount of which is less than 500 EUR in Dinar equivalent, according to the mean exchange rate of the National Bank of Serbia as of the occurrence date, and which are supported by the documents evidencing the insurer’s liability.

The insurer is obliged to indemnify small claims within 8 (eight) days from the claim receipt.

Insured’s liabilities

The insured shall be obliged:

  • to report all circumstances that can affect risk assessment when concluding insurance contract;
  • to pay insurance premium within the agreed term under the insurance contract;
  • neither to take any actions nor allow third persons to take any actions that increase the risk during the insurance period;
  • to keep all registers and documents stipulated under the law and other regulations for the insured aircraft and to present them to the insurer at the request;
  • to inform the competent state authorities about the loss immediately after its occurrence, and the insurer within 15 (fifteen) days.