A billed passed on
September 18th of 2014 that could mandate strict rulings on
liability and compulsory insurance on ship owners, as well as indemnification
of airlines and aviation firms in case of losses incurred from acts of war and
terrorism.
If accepted by Senate, bill C-3 would become a new called
the ‘Aviation Industry Indemnity Act’, and
it would have an impact on laws like the ‘Marine
Liability Act’, the ‘Canada Shipping
Act’, the ‘Marine Liability Act’,
and other acts where hazard components and pollution might be a factor.
Paraphrasing Transport Minister Lisa Raitt on the May 8th
reading of the bill, as of today ship owners are not held to strict liability
measures; it is up to the victims to prove fault of negligence on part of the
owner of the vessel. These amendments would alleviate the burden carried by
victims and make the compensation available guaranteed.
The federal government is proposing to implement within the
bill certain provisions from the HNS convention, where it stipulates that the
owner of the vessel at the time of the incident “shall be liable for damage
caused by any hazardous and noxious substances in connection with their
carriage by sea on board the ship” under certain conditions.
Another provision of Bill C-3 would let the federal
transport minister “Undertake to indemnify one or more aviation industry
participants – or one or more classes of aviation industry participant –
against their loss of damage, or liability for loss or damage, that is caused
by an event”
The act defines “event” as either “an act of unlawful
interference with an aircraft, airport or air navigation facility, including an
act of terrorism” or “an act or omission in the course of armed conflict, war,
invasion, hostilities, civil war, revolution, rebellion, insurrection, an
application of martial law, a usurpation or attempted usurpation of power, a
civil commotion or a riot.”
In its definition of “aviation industry participants,” Bill
C-3 includes: air carriers; NAV Canada; contractors providing air navigation
products and services; airport owners and operators. It also applies to
suppliers who “directly support the operation of aircraft from an airport,”
such as: freight forwarders; airport security organizations; contractors who
maintain and clean aircraft; and contractors who load and unload passengers,
baggage and cargo.
Members of the opposition New Democratic Party (NDP)
expressed several misgivings about C-3 but indicated they would support it
because it’s an improvement over the status quo.
"In a conflict situation, if airlines stop flying to
certain regions for insurance purposes, humanitarian aid might be compromised,
as it may no longer be able to get there," said Christine Moore, NDP MP
for Abitibi-Témiscamingue, Quebec, on Sept. 18. "It might take
considerably longer for aid to get there when humanitarian workers have to land
in countries that are much further away and travel the rest of the route by
land. Providing compensation to the airlines might help keep certain flights to
risk areas so that the people can continue to benefit from the humanitarian
help they need."
Some opposition MPs criticized the bill on the grounds that
it does not impose on ship owners a higher amount of strict liability and for
not amending the bill to prevent Canadian taxpayers from being on the hook for
damages, from spills at sea, of greater than $500 million. The bill underwent
hearings last March by the Standing Committee on Transport, Infrastructure and
Communities, but was returned to the Commons with no amendments from the
original version tabled in October, 2013.
"The liability scheme that was created for this talked
about ship owners’ liability limited to $230 million," said Glenn
Thibeault, NDP MP for Sudbury, Ont. on Sept. 18. "Damages in excess of
ship owners’ liability were to be paid by an international fund, which is that
HNS fund, up to a maximum of $500 million."
The content was sourced on Sept 19, 2014 by Canadian
Underwriter.ca
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