Indexation of minimum liability insurance amounts – Effective July 1, 2026
All air carriers licensed by the Canadian Transportation Agency that offer service to, from, or within Canada, must at all times maintain the appropriate liability insurance to cover claims from injuries, death, and damage to property. The required minimum liability insurance amounts depend on the number of passenger seats an aircraft has and on the aircraft’s maximum certified take off weight (MCTOW).
Each licensee will have to demonstrate that they hold the required minimum liability insurance coverage before the new requirements take effect.
| Liability type | Current | Effective July 1, 2026 |
|---|---|---|
| Passenger liability | CAD 595,000 for each passenger seat | CAD 735,000 for each passenger seat |
| Public liability | ||
| Aircraft MCTOW less than 3,402 kg (7,500 lbs) | CAD 1,985,000 | CAD 2,450,000 |
| Aircraft MCTOW between 3,402 kg and 8,165 kg (between 7,500 lbs and 18,000 lbs) | CAD 3,970,000 | CAD 4,900,000 |
| Aircraft MCTOW greater than 8,165 kg (18,000 lbs) | CAD 3,970,000 + an amount determined by multiplying CAD 655 by the number of kg an aircraft’s MCTOW exceeds 8,165 kg (CAD 298 by the number of lbs an aircraft MCTOW exceeds 18,000 lbs) |
CAD 4,900,000 + an amount determined by multiplying CAD 810 by the number of kg an aircraft’s MCTOW exceeds 8,165 kg (CAD 367.50 by the number of lbs an aircraft MCTOW exceeds 18,000 lbs) |
Failure to provide proof on time will result in the immediate suspension of the licence.
Compliance is to be demonstrated using the following prescribed forms:
For more information, please consult our FAQ.
Contact information
For further information, or if you have any questions about this requirement, please send an email to: licence@otc-cta.gc.ca.
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