Public & passenger liability insurance
Liability insurance required for (TC AIM LRA 4.8):
- Canadian aircraft operated in Canada
- Foreign aircraft operated in Canada
- Canadian aircraft operated abroad
Applies beyond hire or reward flying: private owner must subscribe (CAR 606.02(8)).
Source of requirement (TC AIM LRA 4.8):
| Operator | Source |
|---|---|
| Air operator certified under CAR 703, 704 or 705 | Air Transportation Regulations |
| Everyone else, including private owners and flight training units | CAR 606.02 |
Two covers (TC AIM LRA 4.8):
| Cover | Protects owner and operator if | Who needs it |
|---|---|---|
| Public liability | the aircraft causes damage to persons or property | All, at any weight |
| Passenger liability | a passenger on board suffers injury or death | Operators at any weight; private owner only over 2 268 kg |
Public liability, private owner (not an air operator, flight training unit or fare-paying balloon): minimum by max permissible take-off weight (CAR 606.02(8)):
| Max take-off weight | Minimum |
|---|---|
| 1 043 kg (2,300 lb) or less | $100,000 |
| over 1 043 kg to 2 268 kg (2,300 to 5,000 lb) | $500,000 |
| over 2 268 kg to 5 670 kg (5,000 to 12,500 lb) | $1,000,000 |
| over 5 670 kg to 34 020 kg (12,500 to 75,000 lb) | $2,000,000 |
| over 34 020 kg (75,000 lb) | $3,000,000 |
Passenger liability:
| Who | Weight | Amount | Parachutists | Cite |
|---|---|---|---|---|
| Air operator, flight training unit operator, or fare-paying passenger balloon operator (Subpart 3) | Any | $300,000 x passengers on board | Cover not needed if readily visible notice, posted before embarking, says no cover for parachutists | CAR 606.02(2), 606.02(3)(b) |
| Private owner | Over 2 268 kg (5,000 lb) | $300,000 x passengers on board, per incident | Excluded: passenger carried for parachute descent | CAR 606.02(4) |
- Balloons not carrying fare-paying passengers: not included.
- Most PPL trainers under 2 268 kg: public liability only, no passenger cover.
Trap: 2 268 kg (5,000 lb) is still $500,000 public and no passenger cover. One kg more: $1,000,000 public and passenger cover required (CAR 606.02(4)).
References
- TC AIM LRA 4.8
- CARs 606.02