[GA, defeated] - International Air Travel Compensation

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Simone

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International Air Travel Compensation
Category: Regulation | Industry Affected: Transportation
Proposed by: Simone Republic | Onsite Topic


The World Assembly (WA),

Noting its efforts to regulate international air travel through GARs such as #34, #342, #464;

Concerned that no payment is available on a expedited basis in the event of death or bodily injury of the passengers, or loss of baggage and/or cargo during a flight;

Believing that, in an incident involving a flight, carriers are generally in a better position to pay compensation to passengers first, and then pursue legal redress with other parties if the carrier is not at fault;

  1. Defines:
    • Aircraft to mean any device defined as such by the ITSC;
    • Carrier to mean any operator of aircraft on international trips;
    • Incident to mean any incident that causes death or bodily injury to a passenger, or loss and/or damage to cargo;
    • International trip(s) to include any aircraft departing from one point and arriving at another point, and these two points are in different states;
    • ITSC to mean the WA International Transport Safety Committee;
    • Passenger to mean an individual travelling on a carrier, and "baggage" means any baggage checked in or carried by the said passenger;
    • Shipper to mean the entity (individual or legal) that has paid for the right to ship goods ("cargo") on the carrier, and accepted as such by the carrier, excluding baggage;
  2. Requires a carrier to compensate for the death or injury of a passenger and/or loss of baggage/cargo, if the incident took place on the aircraft or during embarking or disembarking, and/or loading/unloading of baggage/cargo:
    • For the death of a passenger, to an amount that is no less than the median age-adjusted actuarial value (AAAV) of the passenger of any of the following, whichever is higher:
      • the AAAV of the WA state for which the passenger is a citizen (if applicable); or
      • the AAAV of the WA state at which the incident occurs; or
      • any AAAV determined by ITSC from time to time;
    • For the bodily injury of a passenger, to an amount that is no less than the following, whichever is higher:
      • the actual incurred cost of medical treatment for the said bodily injury, up to the AAAV defined in clause (2)(a); or
      • any AAAV determined by the ITSC from time to time;
    • For the loss or damage on baggage and/or cargo, to an amount no less than the minimum set by ITSC from time to time;
    • A carrier is required to make compensation payments as stated in clause 2:
      • as soon as reasonably practicable, subject to verification; and
      • can call upon its insurers to meet any cash needs of the carrier to make such compensation if required;
    • A carrier is required to remind all passengers and shippers in writing prior to departure that any loss they may suffer from any incident(s) may not be fully covered by any compensation by the carrier and that additional insurance for loss of life or bodily injury or property is recommended;
  3. Further requires:
    • A carrier must issue an air ticket (for passengers), a baggage tag, and an airway bill (for any freight cargo) for verification purposes;
    • A carrier must carry adequate insurance with a reputable insurer in a WA state with good standing for the purposes of compensation payments that may be required under this resolution;
    • A carrier is not required to pay any compensation payment to a passenger and/or a shipper if it has been proven beyond reasonable doubt in a due process of law that their loss is caused by the gross negligence and/or deliberate malfeasance of the passenger and/or shipper;
  4. Clarifies:
    • The carrier is not liable for compensation beyond those stated in clause 2 if the carrier can prove, subject to due process, that such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents;
    • If a carrier is found to be ultimately (partly or wholly) negligent for the incident after due process, any compensation already paid pursuant to clause 2 shall be deducted from any additional compensation due and payable;
    • This resolution does not apply to the following, subject to extant WA resolutions:
      • any postal traffic;
      • any traffic for humanitarian aid; and/or
      • any non-civilian air traffic;
    • This resolution asserts jurisdiction as long as one of the following is at a WA state, and jursidiction priority shall be in the same order:
      • The state (including its airspace) where the incident took place is a WA state;
      • The state where the aircraft is registered is a WA state;
      • The state where the carrier is registered is a WA state;
      • The state of the scheduled departure point is a WA state;
      • The state of the scheduled arrival point is a WA state;
    • In case of conflicting rulings between WA states, the Independent Adjudicative Office shall adjudicate as a matter of law but not of fact.
Note: Only votes from TNP WA nations and NPA personnel will be counted. If you do not meet these requirements, please add (non-WA) or something of that effect to your vote.
Voting Instructions:
  • Vote For if you want the Delegate to vote For the resolution.
  • Vote Against if you want the Delegate to vote Against the resolution.
  • Vote Abstain if you want the Delegate to abstain from voting on this resolution.
  • Vote Present if you are personally abstaining from this vote.
Detailed opinions with your vote are appreciated and encouraged!


ForAgainstAbstainPresent
8000
 
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Overview
This proposal seeks to require monetary compensation by a carrier in the event of an accident that results in death, injury, or loss/damage of baggage/cargo during a flight. The carrier is required to make these payments as soon as possible, and can call upon its insures to help make these payments if needed. The proposal also requires carriers to issue air tickets, baggage tags, and airway bills, along with requiring carriers to have "adequate insurance" from a "reputable insurer." It also states that the carrier is not required to pay compensation if the aforementioned damages have been proved to be the fault of the passenger and/or shipper, or proved to not be the fault of the carrier. If the carrier is ultimately found negligent for the incident, any amount already paid according to the proposal will be deducted from any additional compensation. The proposal also states that it does not apply to postal, humanitarian, or non-civilian air traffic, as those are subject to existing resolutions. In matters where different states have conflicting opinions, the Independent Adjudicative Office will adjudicate the case.

Recommendation
The proposal ensures that those who were injured, had close individuals die, or lost baggage/cargo are fairly compensated for their losses. By establishing procedures and amounts for compensation, it also ensures that such financial compensation is regulated and fairly determined. In addition, by allowing carriers to call upon their insurers to help them pay such financial compensation, it guarantees that carriers are able to adequately do so.

For the above reasons, the Ministry of World Assembly Affairs recommends a vote FOR the GA proposal at vote, "International Air Travel Compensation".
 
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For. The Forum thread has detailed rationale for how and why certain clauses are written as is.

Introduction

  1. This is basically a transplant of the Montreal Convention (1999) version for aircraft conditions of carriage, specifically related to compensation clauses.
    https://www.iata.org/en/programs/passenger/mc99/
  2. In real life, the current compensation even under the Montreal Convention is quite low (SDR 113,100 , so about USD 177,000).
  3. This basically defines a decent level of compensation depending on sapient species, and makes the airline responsible for paying first (indirectly through their insurance company), and then chasing after the responsible parties later, making the payment process significantly easier for the passengers. (The cost to the airline should not be significant assuming they have purchased adequate insurance). Everything on top depends on your life and travel insurance, litigation, etc.
  4. The AAAV would be substantially higher than what the current cap on compensation is under the Montreal Convention for a typical human being. (The wording is adjusted to account for differences in specie).
  5. The IRL impact on a ticket in terms of death would be minuscule. For US commercial airliners excluding very small aircraft or charters, which are more dangerous, there had only been two US fatal accidents in the last 10 years on large commercial aircraft on a scheduled flight, Asiana 214 and Southwest 1380, with a total of four deaths. US airliners carried 853 million passengers in 2022 alone (that counts small aircraft).
  6. A carrier is not liable for compensation beyond those stated in clause 2 if the carrier can prove, subject to due process, that such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents.
 
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For.
Majority vote in favour in the Comrades' Assembly. The Assembly sees no immediate issues with this resolution or any reason to oppose it.
 
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