FAQ: Indexation of minimum liability insurance amounts

Why are the required minimum liability insurance amounts increasing?

Every five years, the required minimum liability insurance amounts for air carriers are updated for inflation, based on the consumer price index published by Statistics Canada, as required by the Air Transportation Regulations.

What must I do to demonstrate compliance with the minimum liability insurance amounts requirements?

You are required to submit the prescribed Certificate of Insurance and Certificate of Endorsement forms to the Agency, confirming adherence to the updated minimum liability insurance amounts requirements, no later than June 30, 2026.

What are the consequences if I don't demonstrate to the Agency that I hold the updated minimum liability insurance coverage?

This is a prerequisite for holding a licence, and licensees must demonstrate compliance at all times. Failure to do so will result in suspension of your licence effective 00:01 on July 1, 2026.

When do I need to demonstrate to the Agency that I hold the updated minimum liability insurance coverage?

File as early as possible to confirm compliance. This ensures any issues with your insurance or filed Certificate of Insurance and Certificate of Endorsement forms can be resolved by no later than June 30, 2026. Filing last minute risks your licence being suspended, should the Agency be unable to confirm compliance with the updated insurance requirements prior to July 1, 2026.

Have the air carrier liability amounts been recently updated?

For international travel, the Montreal Convention establishes a carrier’s legal liability limits in respect to the transportation of passengers and cargo and requires air carriers to maintain adequate insurance to cover those liabilities. The Convention’s legal liability limits were most recently updated and became effective on December 28, 2024.

Canada’s minimum liability insurance requirements are established under the Air Transportation Regulations and apply to both domestic and international air services, in respect of passenger and third party liability. They exceed the Convention’s specified limits, and apply to all air carriers licenced to provide air services from, to and within Canada.

Who can I contact for more information?

Questions concerning air licensing requirements should be directed to licence@otc-cta.gc.ca.