Compensation On U.S. Flights

Press, Volume CVI, Issue 31080, 8 June 1966, Page 23

Compensation On U.S. Flights

(NJ. Press Atsociation)

WELLINGTON, ■June 7.

Changes have been made in the international law on compensation for airline accident victims. The Secretary of Civil Aviation (Mr B. R. Rae) said today that the changes formed an interim agreement at present and would only apply to passengers, regardless of nationality, on flights to and from the United States or which had an agreed stopping point there. The airlines had agreed to accept the limits of £27,000 inclusive of legal costs or £21,000 plus legal costs, and they also agreed that claims would be paid automatically once the extent of the loss has been shown, unless there was evidence of sabotage.

"This agreement, although a number of governments have assented to it, does not cover international flights which do not touch the United States,” said Mr Rae.

“On those, the old limits of £3OOO or £6OOO will generally apply. It is likely that there will soon be a diplomatic conference to settle finally on realistic and just rules for the whole of the world.”

The Civil Aviation Department had been working on revision of the rules of liability affecting air travellers

within New Zealand, said Mr Rae.

Under the Carriage Air Act, 1962, there was power to make regulations bringing these rules of liability more closely into line with the international rules. But this did not mean the international limits or principles would be copied exactly for domestic travel and any proposals would be subject to Government approval.

Mr Rae said that interim agreement was necessary because the United States had

refused to accept an amendment to the Warsaw Convention of 1929 which would have doubled the airlines’ liability from £3OOO to £6OOO. The United States refused to accept the proposals because it believed £6OOO was quite inadequate. Several other countries, including Britain and New Zealand, also were unable to accept the amending proposal. A number of attempts had been made to get world-wide agreement on a higher figure, but without success.