Ottawa cancels war-risk insurance program | Canadian Insurance

Ottawa cancels war-risk insurance program

Airline premiums will jump

Canadian airlines will see their premiums rise, CBC reported.

Transportation Minister Marc Garneau has decided not to extend the federally funded war-risk insurance program past its June 2016 expiry date.

Ottawa first offered this coverage after 9/11 when insurers were cancelling their war-risk policies for airlines around the world.

Read: Canada’s lack of TRIA

“We did lobby for this program to continue as it has never cost the government a penny in claims,” John McKenna, president and CEO of the Air Transport Association of Canada, said.

He added airlines will collectively pay $5 million more in premiums each year.

Every other country has ended their war-risk insurance programs, with the U.S. doing so in December 2014.

Read more on CBC.