British court decides aircraft lessors’ claims against reinsurers | Insurance business America
The dispute over aircraft based in Russia is being heard in the UK Supreme Court
reinsurance
By Mika Pangilinan
The U.K. Supreme Court has declared jurisdiction to decide $10 billion in claims filed by aircraft lessors against several reinsurers related to planes grounded in Russia since 2022.
According to a report by Global Sanctions, the court’s decision was based on concerns that landlords in Russia might not receive a fair trial.
The first claims were brought in the English court by lessors who had terminated their leases with Russian airlines. These lessors have had difficulty recovering their grounded aircraft and are now seeking to recoup their losses from global reinsurers such as AIG and AXA.
Russian airlines such as Aeroflot initially insured the leased aircraft with local insurers, who then transferred part of the risk to reinsurers.
In response to the lessors’ claims, the reinsurers disputed the English court’s authority to oversee these cases, citing documents showing that the policies were governed by Russian law.
According to Global Sanctions, a trial date has been set for October 2024.
Dubai Aerospace Enterprise (DAE) said in December that it had received $118 million from “claims under Aeroflot’s insurance and reinsurance policies relating to seven aircraft and associated engines.”
DAE also agreed to release its claims against Aeroflot and its insurers and reinsurers, but added that it “will continue to actively pursue its litigation in the English courts under its own insurance policies.”
The company will also “continue its efforts to mitigate losses related to its aircraft previously leased to other Russian airlines,” the statement released in December said.
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2024-04-05 04:40:00
www.insurancebusinessmag.com
