Annual Report 2005-06: Insurance and indemnities
Insurance and indemnities
The following information about CASA’s Commonwealth and commercial indemnities and insurances is provided in accordance with clause 16 of the Commonwealth Authorities and Companies (Report of Operations) Orders 2005.
When CASA was established, certain indemnities in relation to the authority’s responsibilities were provided by the Australian Government. Since then, commercial insurances have been arranged to cover these risks.
Nevertheless, the Commonwealth remains obliged to indemnify CASA in relation to liabilities associated with acts or omissions that occurred before the expiry of two deeds of indemnity in July and August 1998.
In 2005–06, CASA held aviation and general liability, professional indemnity, directors’ and officers’ liability insurance and a range of other corporate insurance.
Aviation and general liability
Aviation and general liability insurance provides coverage for injuries caused to third parties or to the property of third parties as a result of negligence arising out of the performance of CASA’s functions under the Civil Aviation Act, the Civil Aviation (Carriers’ Liability) Act 1959 and other applicable legislation, and for which indemnity by the Commonwealth of Australia does not apply.
CASA’s professional indemnity coverage applies for claims arising from breaches of duty by CASA officers, generally involving the provision of skilled services or advice.
Directors’ and officers’ liability
During 2005–06, CASA held insurance protecting directors and officers from liability for the consequences of managerial misconduct or negligence, to the extent that the provision of the indemnity is not prevented by applicable legislation.