Insurers called on to suspend air terror charge

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LONDON, March 11 (Reuters) - Insurance brokers called on Monday for insurers
to suspend a $1.25 per passenger terror surcharge currently imposed on
aviation policies at a meeting of the International Air Transport
Association here.

In a letter sent on behalf of the London Market Brokers Committee to
insurance organisations, Jonathan Palmer Brown, chairman of the aviation
group at Aon (AOC), called the surcharge "a simple blunt instrument
approach."

He said there should be talks on reducing the charge to 50 cents or even 25
cents per passenger and that the amount should take into account risk
profiles of the insured airlines.

Low-risk carriers such as package holiday flight operators pay the same
level of surcharge as flag carriers of high-risk countries.

Palmer Brown said the surcharge would amass $2 billion for insurers
annually.

The $1.25 premium was introduced by insurers following the September 11
attacks.


©2002 Reuters Limited.

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