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2mo ago

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.
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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.