Particle.news
Download on the App Store
5 ARTICLES
·
last mo.

Insurers Must Pay $4.5 Billion for Jets Seized by Russia, High Court Rules

Losses are deemed to have occurred on March 10, 2022 when Russia banned aircraft exports, clearing insurers to pay a $4.5 billion war-risk claim.

A general view of the Royal Courts of Justice, more commonly known as the High Court, in London, Britain, November 2, 2020.
Image
AerCap, which is based in Dublin, is the world’s largest aircraft lessor

Overview

  • The High Court’s 230-page judgment held that a piece of Russian legislation banning aircraft exports on March 10, 2022 caused the loss of more than 400 planes.
  • The test case bundled claims from major lessors including Aercap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aircraft Trading and Falcon 2019-1 Aircraft.
  • Insurers such as Lloyd’s of London, AXA, AIG, Allianz and Liberty were found jointly liable under war-risk policies for a total of $4.5 billion.
  • The court rejected arguments that a war-exclusion clause or the effects of US and EU sanctions prevented insurers from covering the losses.
  • Legal experts say the landmark ruling could set a precedent for similar insurance disputes in Ireland and the United States over Ukraine-related seizures.