CASA Annual Report 2003 04 Part 5: Statutory reporting requirements
Statutory reporting requirements
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 2002.
Previous Commonwealth indemnities
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 administered 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 This indemnity was revoked with effect from 29 August 1998.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 December 1999, the Commonwealth provided a deed of indemnity to CASA Board members. This indemnity expired on 30 June 2002. The CASA Board ceased to exist on 21 October 2003, upon commencement of the Civil Aviation Amendment Act 2003.
Current commercial indemnity and insurance arrangements
In 2003–04 CASA held aviation and general liability, professional indemnity, directors and officers liability insurance, and a range of other corporate insurance. The general scope of this coverage is outlined below.
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 and other applicable legislation, and for which indemnity by the Commonwealth of Australia does not apply.
CASA’s professional indemnity coverage applies in respect of claims arising from breaches of duty by CASA officers generally involving the provision of skilled services or advice.
Directors’ and officers’ liability
CASA held insurance protecting directors and officers from liability for the consequences of managerial misconduct or negligence, to the extent the provision of this indemnity is not prevented by applicable legislation.