There are two main models of insurance: private and social. Private insurance is voluntary while some social insurance is mandatory. The document discusses various types of mandatory aviation insurances. It notes that while insurance covers professional risks, there is a lack of insurance that protects victims during catastrophic accidents, which pose high uncertainty. International conventions require mandatory liability insurance up to limited amounts, and establish supplementary compensation funds when damages exceed limits. The document argues a two-tier liability system could help compensate damages from catastrophic events in the aviation sector.
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
Worldwide Facilities, Inc. is a managing general agency and surplus lines broker which provides all kinds of aerospace and aviation insurance through the best insurance carriers.
Legal Concepts Of Liability Insurance 2010Annette Ardler
THis course addresses liability insurance and the legal concepts associated with it. During the course, students will gain an understanding of the following concepts: Four Types of Exposures: Test for Negligence; Defense and Conditions for Negligence; Duty to Defend; Claims Settlement and Payments by Policy Structure
AIDA-Europe and Ferma invite you to come to Paris on June 3rd and participate in the one day conference on questions of Commercial Insurance Law which they jointly organise. As we all know Risk and Insurance Managers are permanently confronted with a wide scope of legal questions. We also know that legal experts can profit from looking at what happens in practical business life. This is why we want to bring together the members of Ferma and AIDA-Europe under the motto “when theory meets practice”. In four panels risk managers, academics, lawyers and other legal experts will cover important legal aspects of the following topics:
- Co-Insurance: Who owes what, when and to whom?
- Embargo Regulation: The discordant music of European and national public orders
- Serial Claims: When fiction trumps reality
- D&O Insurance: Phantasms on forbidden guarantees
home insurance cover can be purchase as a combined policy or purchase separately. There are the standard covers and extensions or add-on that could be requested by the client for an additional premium. Away from the standard policy, some exclusions could be purchase by the client as a separate policy to cover their risk.
A Look at the Emerging Security Threats to the Aviation IndustryDominic_White
The aviation industry is always at risk of terror attacks and other security threats. Ironically, some recent developments in aviation technology may be putting airlines and passengers in hazardous situations instead of protecting them. Current practices by airline staff are may also be seen by potential criminals as a weakness.
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
Worldwide Facilities, Inc. is a managing general agency and surplus lines broker which provides all kinds of aerospace and aviation insurance through the best insurance carriers.
Legal Concepts Of Liability Insurance 2010Annette Ardler
THis course addresses liability insurance and the legal concepts associated with it. During the course, students will gain an understanding of the following concepts: Four Types of Exposures: Test for Negligence; Defense and Conditions for Negligence; Duty to Defend; Claims Settlement and Payments by Policy Structure
AIDA-Europe and Ferma invite you to come to Paris on June 3rd and participate in the one day conference on questions of Commercial Insurance Law which they jointly organise. As we all know Risk and Insurance Managers are permanently confronted with a wide scope of legal questions. We also know that legal experts can profit from looking at what happens in practical business life. This is why we want to bring together the members of Ferma and AIDA-Europe under the motto “when theory meets practice”. In four panels risk managers, academics, lawyers and other legal experts will cover important legal aspects of the following topics:
- Co-Insurance: Who owes what, when and to whom?
- Embargo Regulation: The discordant music of European and national public orders
- Serial Claims: When fiction trumps reality
- D&O Insurance: Phantasms on forbidden guarantees
home insurance cover can be purchase as a combined policy or purchase separately. There are the standard covers and extensions or add-on that could be requested by the client for an additional premium. Away from the standard policy, some exclusions could be purchase by the client as a separate policy to cover their risk.
A Look at the Emerging Security Threats to the Aviation IndustryDominic_White
The aviation industry is always at risk of terror attacks and other security threats. Ironically, some recent developments in aviation technology may be putting airlines and passengers in hazardous situations instead of protecting them. Current practices by airline staff are may also be seen by potential criminals as a weakness.
Paola Tomasello - Liabilities of Remotely Piloted Aircraft Systems (RPAS): th...ALIAS Network
Drones (namely RPAS) have been chosen as case study to test the Legal Case, the novel methodology, developed by the ALIAS Project, to proactively address liability of new aviation technologies. This presentation shows how the methodology has been applied to address liability issues of drones. It presents the step 1 of the Legal Case process, dealing with the human factors analysis of drones. This intends to define task allocation between the remote pilot and the drone in order to derive task responsibilities of all actors involved in drones operations.
Following developments on the implementation of the European Liability Directive, Pierre Sonigo explores its implications for captives and operators in the region.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
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Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
1. WHO SHOULD INSURE AGAINST
LIABILITY ?
Alias Conference
Florence, 14-15 June 2012
Anna Masutti
University of Bologna
2. Insurance and liability
There are two main insurance models:
models
• the private one, which is the most common and generally voluntary,
even though in some cases it is mandatory;
• the social one, public in nature, which has a subsidiary role and is
obligatory.
3. Insurance and liability
Private insurance is governed by the principles of contract law
and insurance premium rates are based on the individual risk;
on the contrary, social insurance is based on the principle of social
responsability, and therefore contributions are income-related, and it is
generally employed as a means to protect workers.
4. Insurance and liability
Examples of existing insurances:
• Aviation Liability: air carrier and aircraft operator liability (for
passengers, baggage and cargo)– mandatory insurance ;
•Aircraft hull
•Aviation products liability
•Aviation cargo
•Aircraft crew personal accident cover
• Airport liability insurance;
• ANSP insurance according to SES I.
5. Insurance and liability
Manufacturers may be held liable for serious aircraft accidents.
Damages awarded for defective products are increasing.
Regulation for liability claims against manufacturers is part of
national legislation.
6. Insurance and liability
As seen, there are a few mandatory insurances:
In the current EU framework, (EC) Regulation n. 785/2004
establishes that air carriers and aircraft operators shall be insured
for their aviation-specific liability in respect of passengers,
baggage, cargo and third parties on the surface.
The insured risks shall include acts of war, terrorism, hijacking, acts of
sabotage, unlawful seizure of aircraft and civil commotion.
7. Insurance and liability
In order to implement/apply Regulation n. 785/2004, effective,
proportional and dissuasive sanctions are provided and
these can include:
the withdrawal of the operating licence for EU air carriers and
• the refusal of the right to land on the territory of an EU country for
non-EU air carriers and for aircraft operators using aircraft registered
outside the EU.
8. Insurance and liability
Another example of mandatory insurance is the one provided for by
the amended Rome Convention of 1952, signed in Montreal in 2009,
on Compensation for Damage Caused by Aircraft to third parties
resulting from Acts of Unlawful Interference (not yet in force), which
in fact provides for:
• Compulsory insurance by the aircraft operator (art.7).
• Strict liability of the liable party (aircraft operator) up to the limit
established in relation to the aircraft maximum mass. These limits are
the same provided by reg. (EC) 785/2004 for compulsory
insurance in the EU.
9. Insurance and liability
There are no similar provisions in Europe aimed at protecting
third parties for ANSP:
Article 6 of Reg. (EC) No 550/2004 establishes only that the ANSP
shall include, amongst other things, “liability and insurance
cover”.
neither for other operators.
10. Insurance and liability
What we see is that existing insurances mostly cover professional
risks related to their activities,
but what lacks is an insurance system especially aimed at
protecting victims in case of catastrophic accidents;
11. Insurance and liability
Insurance for catastrophic accidents is extremely difficult because of
the high uncertainty of the risk at stake and the elevated
losses involved.
12. Insurance and liability
In absence of TPL regulations, established for such
catastrophic events, insurance companies will not have the
necessary resources to indemnify these risks by themselves.
How can we solve the impasse arising from this current
framework, which inevitably will characterize the SES?
13. Insurance and liability
In order to solve this problem, at the international level mandatory
liability insurance has been provided for by TPL international
conventions for risk-related sectors. Examples are:
Convention on Civil Liability for Oil Pollution Damage (CLC),
Brussels 1969, as modified by the Protocol of London 1992;
• International Convention on the Establishment of an International
Fund for Compensation for Oil Pollution Damage (FUND), 1971;
Convention on Civil liability for Nuclear Damage, Vienna, 1963;
International Convention on Liability and Compensation for Damage
in Connection with the Carriage of Hazardous and Noxious
Substances by Sea, London, 1996.
14. Insurance and liability
All these TPL international conventions are based on the following
principles:
• The channelling of liability to a single liable party (LP).
• Strict liability of the liable party.
• Limited liability of the liable party (first tier).
• Compulsory insurance of the liable party, up to the limit
of the first tier, and direct claim against the insurer.
• Supplementary compensation if the damages exceeds the
first tier (entering the second tier).
• Limitations of the amount of compensation.
15. Insurance and liability
In particular:
The aim of compulsory insurance is twofold:
(i) to assure victims of the financial strength of the liable
party.
(iii)to avoid the risk of financial difficulties or bankruptcy
of the liable party.
The liable party shall be required to maintain insurance covering its
liability for damages up to the maximum of the first tier, or a lower
amount if so established by its Member State.
16. Insurance and liability
Direct claim against the insurer is another common
solution adopted at the international level to:
(i) protect victims, who thereby have a stronger guarantee to
compensation, and
(iii) rationalise/reduce the cost of claims.
17. Insurance and liability
Another possible solution in order to contribute to indemnify the damages arising
from a catastrophic event can be offered by a Supplementary Compensation
(second tier)
It would be in fact desirable to establish a two-tier liability system that
comprises a first tier funded by compulsory contributions and a
second tier that could be made available when necessary.
The second tier of compensation has two basic purposes:
(i) to increase the amount of compensation available for the
insurance market to the victims, and
(ii) to share the financial risk borne by private industry with public
parties.
18. Insurance and liability
Supplementary compensation is envisaged in three cases:
• when the damages exceed the liable party’s liability
(paid by the insurers),
• when the LP is not liable because the damage was a consequence of
force majeure,
• when the LP liable for the damage under a regulation is financially
incapable of meeting its obligations in full, and any financial
security available does not cover the claims or is insufficient.
19. Insurance and liability
Right of recourse:
The liable party shall have the right of recourse against any person
who has caused the damage*.
The Supplementary Compensation Mechanism allows the right of
recourse against any person who has caused damage*.
* For example, any person/entity who has committed organized, or
financed an act of (unlawful) interference which has caused a
malfunctioning of the system.
20. Insurance and liability
Who will contribute to Supplementary Compensation ?
A Possible Solution
Contribution to Supplementary Compensation could be established as
a percentage of the mandatory amounts collected in respect of each
service offered or it could be supplied by public entities.