The federal government has introduced legislation that would increase the payout available to air accident victims – and the mandatory insurance domestic airlines are required to carry.
The Aviation Legislation Amendment increases the cap on payments to passengers injured on domestic flights from $500,000 to $750,000. Federal Transport Minister Anthony Albanese said the change would bring Australia into line with international practices and represents the first time Australia’s cap has been raised since 1994.
The bill brings the cap “into the 21st century to reflect current costs, rather than those of nearly two decades ago,” he said.
“While Australia has a proud aviation safety record, it is important we continue to strengthen protections for people flying domestically,” Mr Albanese continued. “Together, these important reforms will ensure that airlines move quickly to a fair settlement with victims and their families in the event of an air accident.”
Albanese said the increased cap would have only a modest impact on insurance premiums, which he said represented two to three per cent of total costs for small operators and less for larger airlines.