Insurance and reinsurance

Captive insurance

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

In Slovenia it is compulsory for the owner of the aircraft to be insured against liability for damage caused to third parties, passengers, luggage and cargo. The stated insurance shall be concluded before the aircraft starts to be used in traffic and must be renewed as long as the aircraft is in use. The insurance must be concluded in accordance with the provisions of the Compulsory Motor Third-Party Liability Insurance Act and Regulation (EC) No. 785/2004 on insurance requirements for air carriers and aircraft operators. The obligation for such insurance applies also to an air carrier and an operator of a foreign aircraft entering the airspace of Slovenia.

There are no requirements that such insurance must be placed in Slovenia. It may also be concluded with several insurance companies.

Cut-through clauses

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

Cut-through clauses are legally effective; however, they are used only in exceptional cases.

Reinsurance

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

The insured person may transfer his or her rights from the (re)insurance against the occurrence of the damage only to a person, which can be the insured person, namely a person with a justified material interest that the insurance case should not occur.

We have no information whether assignments of reinsurance are typically provided on aviation leasing and finance transactions.

Liability

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

According to ZOSRL, the liability of the air carrier for damage in case of death or personal injury of a passenger during the period of air transport shall be governed by the EU legislation on air carrier liability. In this respect Regulation (EC) No. 785/2004 applies. Given the wording of article 4(2) of the Regulation, the owner, lessor or financier is liable for the operation of the aircraft if they have operational control over the aircraft.

Furthermore, ZOSRL determines the liability for damages caused on the ground by an aircraft in flight, whereby the owner or the lessor of an aircraft shall be liable for the damage caused on the ground due to death, damage to health or injury to other persons, as well as damage to things caused directly by the aircraft in flight or persons or cargo or other things that have fallen or were thrown from such an aircraft. The contractual and actual air carrier shall be jointly and severally liable for such damage.

ZOSRL also determines that if there are two or more air carriers involved in the transport the first carrier and the consecutive carrier on whose route the damage occurred are jointly and severally liable for the damage caused by death, damage to health or injury of the passenger and for damage caused by delay.

Strict liability

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

See question 33.

Third-party liability insurance

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

The minimum insurance sum for a particular loss event is determined by Regulation (EC) No. 785/2004.

The minimum insurance cover per accident for each and every aircraft in respect of liability for third parties shall be:

Category

MTOM (kg)

Minimum insurance (million SDRs*)

1

<500

0.75

2

<1,000

1.5

3

<2,700

3

4

<6,000

7

5

<12,000

18

6

<25,000

80

7

<50,000

150

8

<200,000

300

9

<500,000

500

10

≥500,000

700

*SDR: special drawing right as defined by the International Monetary Fund