INSURANCE BY AIRLINES

Press, Volume XCVII, Issue 28554, 7 April 1958, Page 11

INSURANCE BY AIRLINES

Legislation Planned In Australia MELBOURNE, April 5. Legislation which will give passengers on Australian inter-state and overseas air services an automatic insurance cover of £7500 will be introduced in the Federal Parliament this month. Other important legislation is being drafted. One bill is expected to give the Governmentowned Trans-Australia Airlines independence in administration—including greater freedom in borrowing powers. The only official announcement on the T.A.A. legislation was in the air policy statement of the Prime Minister (Mr Menzies) last September. He said the Government recognised the need for the National Airlines Commission which operates T.A.A. “as a commercial enterprise to have the greatest possible flexibility in its administration.” The £7500 insurance cover was recommended in an agreement signed at the Hague in 1955. It was intended to apply to international air passengers only but the Australian Government plans to extend it not only to Qantas Empire Airways but also to domestic airlines. At present Australian interstate airlines cover each passenger with a £2OOO policy State Governments will probably follow up this with laws covering intraState operators only.