The Case-Law of the CJEU on the Montreal Convention and the Potential Gap between Liability and Insurance

.

"...Gaps between liability and insurance may arise. How a particular concept is interpreted in a jurisdiction will expand or shrink the risk covered, that is, the foreseeable cost for the insurer. The same applies for air carriers from the point of view of liability. They might bear the burden of compensations in situations where they did not expect to be liable, or when they thought such burden had ultimately been placed on the insurer. There may also be uncertainties regarding the types of damage covered by insurance or that carriers must compensate for. The establishment of liability caps sometimes generates certain interpretative doubts, too, and their resolution increases or decreases the burden borne by insurers and carriers. Lastly, the way courts assess in practice the contributory negligence of the victim can also impact the forecasts made by businesses. All these factors are relevant in the field of air transport, and they will be explored in the following pages."