CASA Annual Report 2002 03 Appendix 9: Insurance and indemnities
Part 7: Appendices
Appendix 9: Insurance and indemnities
The following information about CASA's Commonwealth and commercial indemnities and insurances is provided in accordance with clause 16 of the CAC Orders.
In setting up CASA, certain indemnities in relation to CASA's responsibilities were provided by the 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 date of expiry.
Under a Deed of Agreement, CASA was indemnified against claims incurred in carrying out its responsibilities for aviation safety regulation. This indemnity was subject to an annual renewal on payment of an annual premium by CASA to the Commonwealth. This indemnity expired on 5 July 1998.
An indemnity was given to those officers of CASA who administer the carriers' liability insurance requirements under Part IVA of the Civil Aviation (Carriers' Liability) Act 1959 and complementary State legislation. This indemnity was revoked with effect from 29 August 1998.
In addition, in December 1999, the Commonwealth provided a deed of indemnity to CASA Board members, which covered any claim for damages involving time recognition problems from computer hardware or software.
Commercial indemnity and insurance arrangements
In 2002–03 CASA held Aviation and General Liability, Professional Indemnity, Directors and Officers Liability insurance, and a range of other corporate insurance. Details of key insurances are outlined below.
Aviation and general liability
Aviation and General Liability insurance provides coverage against injury caused to third parties, or to the property of third parties, as a result of negligence of CASA or its directors or employees or delegates arising out of CASA's functions relating to civil aviation, the safety of civil aviation, and from which indemnity by the Commonwealth of Australia does not apply.
The CASA Professional Indemnity policy provides cover to all CASA officers against claims arising from a breach of their respective duties, usually involving provision of skilled services or advice.
Directors' and officers' liability
CASA held a policy covering Directors' and Officers' Liability. This cover protected CASA directors and officers against the consequences of managerial misconduct or negligence in the running of the Authority.