LOT Polish Airlines have noted with satisfaction the resolution passed by the Sejm of the Republic of Poland, to extend the insurance guarantee granted by the State Treasury for Polish air carriers till the end of June, 2002. This guarantee covers third-party liability of the carrier arising from an act of war and acts of terror in respect of damage exceeding USD 50 million. The aggregate amount of the guarantee is USD 1 billion.
The initial insurance guarantee for Polish carriers, upon the request of LOT Polish Airlines, was granted by the Government at the end of September. It was a reaction to the decision of reinsurers, who have drastically raised the cost of insurance against the risk of war and acts of terror, in connection with terrorist attacks against the USA. At the same time, the Cabinet have drawn a bill on insurance guarantee for air carriers and referred it to the Sejm.
The resolution will enable LOT Polish Airlines - along with other carriers and airline associating organizations (IATA and ICAO) - to establish a comprehensive solution allowing airlines to properly function under then circumstances when the reinsurers drastically raise their premiums.