Warsaw, 24.10.14 PZU SA

Aviation Liability and Insurance in Poland

International Air Law Conference 85 Anniversary of Warsaw Convention

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1. PZU SA Overview1.1 Brief description of the PZU Group1.2 Polish Insurance Market

2. Aviation Liability and Insurance in Poland2.1 Montreal Convention

2.2 The European Union2.3 Polish Aviation Law Act

2.4 Regulation item 67 from 20132.5 Ariel Form2.6 Regulation item 1123 from 20122.7 General terms and conditions of Aviation Insurance

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PZU Group

•Founded in 1803

•Gross written premium* of 8,483 m PLN /~1,998 m EUR

•Net profit* of 1,720 m PLN /~ 407 m EUR

•S&P rating: A / stable

*H1 2014

PZU’s market share (non-life insurance)

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Polish Insurance Market

SECTION II: Other personal insurance and propertyinsuranceClass 11: Third party liability insurance of any type,

arisingout of the possession and use of aircraft, includinginsurance of carrier's liability.

COMPENSA TU S.A. Vienna Insurance GroupSTU ERGO HESTIA SAGENERALI T.U. S.A.PZU SATUiR WARTA S.A.

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Montreal Convention 1999

Article 50 - Insurance

the requirement for carriers to maintain adequate

insurance covering their liability under that

Convention

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The European Union

Regulation EEC No 2407/92 on licensing of air

carriers

Regulation EC No 785/2004 on insurance

requirements for air carriers and aircraft operators

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Polish Aviation Law Act

Polish Aviation Law Act – amendment from 2011,

article 209.

Third party insurance is requested for:

•air carriers,

•users of an aircraft,

•entrepreneurs providing ground support service,

•institutions providing air navigation services.

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Polish Aviation Law Act

• The amendments introduce an obligationof third party

liability insurance for damages caused by delay.

• The minimum insurance cover in respect of liability for

passengers, baggage and cargo (non-commercial

operations by aircraft with a MTOM of 2 700 kg or less:

785/2004: 250 000 SDR; Poland: 100 000 SDR).

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Regulation item 67

• Issued by the Finanse Minister

• Since 16.01.2013

• The obligatory third party insurance of air carriers,

entrepreneurs providing ground support service

and institutions providing air navigation services.

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Regulation item 67

The regulation determines the detailed scope of the obligatory third party

liability insurance for:

•air carriers for damages caused by delay in carriage of passengers, baggage

and cargo,

•air carriers for damages caused by delay in air carriage of mail,

•entrepreneurs providing ground support services for damages inflicted in

connection with the aviation activity conducted,

•institutions ensuring air navigation services for damages inflicted in connection

with the aviation activity conducted.

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Regulation item 67

• The coverage for damages caused by action or omission of

the insured in the insurance term.

• The minimum guaranteed sum (on the example of air carriers

for damages caused by delay in carriage of passengers,

baggage and cargo):

SDR 4,694 per each passenger – delay in carriage of passengers;

SDR 1,131 per each passenger – delay in carriage of baggage;

SDR 19 per each kilogram of cargo – delay in carriage of cargo.

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Regulation item 67

The following damages are not covered:

•consisting in paying contractual penalties,

•inflicted as a result of an action or omission after expiry,

withdrawal or suspension of the license,

•caused by the fault of the sender or addressee,

•resulting from a hidden defect or natural properties of the mail.

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ARIEL Form

Airport Owners and Operators liability

•Section 1 – Premises liability

•Section 2 – Hangarkeepers liability

•Section 3 – Product liability

•Additional /Standard Aviation Clauses

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Regulation item 1123

• Issued by the Finanse Minister

• Since 12.10.2012

• The obligatory third party liability insurance of entrepreneurs applying

for conclusion of an agreement on conduct of civil aviation security

activity in airports.

• Cover for persons whom the insured uses to perform the civil aviation

security activities in airports.

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Regulation item 1123

The following damages are not covered:

•after withdrawal of the license,

•resulting from war, civil commotion, riot, terrorism,

•nuclear or related damages,

•caused by asbestos,

•consisting in paying contractual penalties,

•inflicted by the insured to its employees.

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Regulation item 1123

The minimum guaranteed sum amounts to the PLN

equivalent of SDR 5,000 per each 1,000 passengers

handled or 100,000 kg of goods and mail handled in

the

year preceding the conclusion of the insurance

agreement.

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General terms and conditions of AVIATION INSURANCE

• Aircraft hull insurance

• Third party liability insurance of a user

• Third party liability insurance of a carrier

• Third party liability of a carrier with respect to transporting cargo

• Consequences of personal accidents of the crew members (PA)

• Personal effects of the crew members

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General terms and conditions of AVIATION INSURANCE exclusions (examples)

• War, social unrest, civil war, revolution, strikes or a

state of emergency;

• Terrorist or sabotage action or hi-jacking of the

aircraft

• Polution of the natural environment

Contact Details:

PZUAl. Jana Pawła II 2400-133 Warsaw, Poland

Corporate Clients Department

Tomasz Suska tsuska@pzu.plTel.: (+48 22) 582 26 11

www.pzu.pl

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Thank you!