CTA WILL INDEX MINIMUM LIABILITY INSURANCE AMOUNTS
March 18, 2026
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On February 2, 2026, the Canadian Transportation Agency (the “CTA”) announced that minimum liability insurance amounts will be indexed for inflation effective July 1, 2026. As required by Canada’s Air Transportation Regulations, the CTA requires carriers to maintain minimum liability insurance amounts to ensure sufficient compensation for passenger injuries, death, and property damage in the event of aviation accidents. To further protect the traveling public, Canadian regulations also make sure that the CTA updates required minimum liability insurance amounts every five (5) years to account for inflation. Carriers operating to, from, or within Canada should review the below chart and update insurance documents accordingly. For clarity, the updated minimum liability insurance requirements apply to both passenger liability and public liability, based on aircraft seating capacity and maximum certified take-off weight (“MCTOW”).
| Liability Types | 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 |
Aircraft MCTOW greater than 8,165 kg (18,000 lbs.) |
Carriers licensed to provide air services to, from, or within Canada must submit their Certificate of Insurance (available here) and Certificate of Endorsement (available here) no later than June 30, 2026. Failure to do so could result in suspension of a carrier’s CTA license along with additional penalties. We would be happy to assist should carriers have questions concerning the required minimum liability insurance amounts and/or general air licensing requirements.
This Aviation Blog Post is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202.659.6665 or dderco@eckertseamans.com; Tyler Myers at 202.659.6642 or trmyers@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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