Insurance and reinsurance

Captive insurance

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

Ukrainian law requires that insurance for aircraft registered at the Aircraft Registry shall be placed in Ukraine with an insurance company accredited by the SAS. Usually, risks insured in Ukraine are reinsured abroad on a London market and there is no requirement as to a minimum or maximum percentage of the insurance that must be retained. Though it is not forbidden to pool insurance it is not used on the local market.

Cut-through clauses

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

Cut-through clauses under the insurance and reinsurance documentation are legally effective.

Reinsurance

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

Assignments of reinsurance (by domestic or captive insurers) are legally effective and 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?

No. Neither the owner, lessor nor financier is liable for the operation of the aircraft or the activities of the operator. It is clearly provided by the Civil Code of Ukraine.

Strict liability

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

No. A regime of strict liability is applied only to the aircraft operator.

Third-party liability insurance

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

Third-party liability cover is calculated depending on the total flight weight of the aircraft. It shall be no less than 4.2 million special drawing rights (SDR) for aircraft weighing up to 49,999 kg; 14 million SDR for aircraft between 50,000kg and 199,999 kg; and, 33.4 million SDR for aircraft heavier than 200,000kg.