Insurance and reinsurance

Captive insurance

Summarise any captive insurance regime in your jurisdiction as applicable to aviation.

Dominican law does not currently provide for a captive insurance regime.

Cut-through clauses

Are cut-through clauses under the insurance and reinsurance documentation legally effective?

Cut-through clauses are not legally effective given reinsurers’ statutory obligation (under article 148 of Insurance and Bonds Law No. 146-02, which is a public order statute) to pay their corresponding transferors the amounts they would be responsible for under a claim.


Are assignments of reinsurance (by domestic or captive insurers) legally effective? Are assignments of reinsurance typically provided on aviation leasing and finance transactions?

As implied in question 31, Dominican law recognises and regulates reinsurance contracts, which are indeed often involved in civil aviation matters in the Dominican Republic.


Can an owner, lessor or financier be liable for the operation of the aircraft or the activities of the operator?

Assuming the operator in question and the aircraft being operated by it are all appropriately registered, no.

Strict liability

Does the jurisdiction adopt a regime of strict liability for owners, lessors, financiers or others with no operational interest in the aircraft?

Strict liability is adopted with regards to the owner or lessee, as applicable and as evidenced by the corresponding records before the RNA. Financiers and other third parties with no operational interest in the aircraft are not presumed directly liable for any damages.

Third-party liability insurance

Are there minimum requirements for the amount of third-party liability cover that must be in place?

Yes. Air operators are required to have a general liability policy encompassing the entirety of their operations, which must remain valid for the duration of their licence and have cover of at least US$30,000 to respond to any damages they may be liable for.