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23 December 2020
Air carriers offering scheduled international services to or from Canada must, by virtue of the Canada Transportation Act (SC 1996, c 10), file proof of insurance each year as a condition of maintaining their licence. Historically, the Canadian Transportation Agency has, in some instances, allowed for leniency in the form of granting extra time for air carriers to file the proper certificates when the previous year's certificates on file had expired. The required filings are comprised of two documents:
The form of these certificates is prescribed by regulation – and well known to most aviation insurance brokers.
Traditionally, many carriers renew their coverage in November and December each year, which triggers the above filing requirements.
As renewal season is here, a review of the agency's recent decisions demonstrates that such leniency is no longer being extended as the agency is now prepared to suspend air carriers' licences immediately on the expiry of the certificates on file.
Indeed, in November 2020 alone, the agency issued more than two dozen such suspensions. This trend has continued into December 2020.
As a result, air carriers are well advised to take proactive steps to have their insurance documentation filed in a timely way. Moreover, the agency is notorious for scrutinising the form of the certificates to ensure that they are compliant. Accordingly, best practice suggests that it would be prudent to file the certificates at least two business days before expiry to allow time to request brokers to make amendments, if required.
For further information on this topic please contact Carlos P Martins at WeirFoulds LLP by telephone (+1 416 365 1110) or email (email@example.com). The WeirFoulds LLP website can be accessed at www.weirfoulds.com.
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Carlos P Martins