ORR leaves standard insurance cover limit unchanged

ORR decision (9 pages, scanned PDF) announcing some changes to the third-party liability insurance requirements of railway operators. ORR has dropped its consultation proposal to reduce the default minimum limit of cover from £155 million to £100 million for each incident. Several consultation responses had highlighted the risk that an accident could realistically lead to liabilities in excess of £100 million. But ORR is asking Network Rail to specify its proposal to purchase "catastrophe level" cover for all operators in a centralised manner with a view to revisiting the question of minimum cover levels ahead of next year's insurance renewal round.

Operators will still be permitted to purchase insurance cover that excludes terrorism risks.

For further information or advice please contact Franck Latrémolière.

Filed under ORR, Public transport.

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