(Please explain the reason behind the increase of Airline Liability Limits for cargo from 17 SDR to 19 SDR per kilogram effective 30 Dec mber 2009.)
Q.
Please explain the reason behind the increase of Airline Liability Limits for cargo from 17 SDR to 19 SDR per kilogram effective 30 Dec mber 2009. (28 Feb 10)
A.
Unlike the Warsaw system, Montreal Convention of 1999 (MC99) incorporates in itself a CPI sliding clause in Article 24 where it stipulates that if the Consumer Price Index changes by more than 10% in a five year term, such CPI changes will be reflected to the liability limits. In measuring the CPI, it stipulates that the countries of the 4 currencies which comprise the basis of the SDR, namely, U.S. dollar, EU Euro, British Pounds and Japanese Yen will be used on a weighted average for a 5 year period. If there is a CPI change of more than 10% in either direction, ICAO will notify the MC99 member states. Provided there is no majority opposition, the CPI change will be reflected on the airline liability limits. The first such review happened in 2009, five years from the day MC99 became effective. The weighted average of the CPI was 13.1%, and consequently this percentage was reflected onto the current Liability Limits and was announced as the new Liability Limits effective 30 Dec mber 2009.

??Death or bodily injury of a passenger: No limit.
_If the claim exceeds 113,110 SDR (formerly 100,000 SDR) the airline May exercise refutation.
??Passenger delay claims: 4,694 SDR per passenger (formerly 4,150 SDR)
??Passenger baggage:?@ 1,131 SDR per passenger (formerly 1,000 SDR)
??Checked baggage:?@ 19 SDR per kg. (formerly 17 SDR)
??Cargo:?@?@ 19 SDR per kg. (formerly 17 SDR)

All cargo claims will henceforth be settled at 19 SDR per kilogram regardless of whether the shipment is moving under Warsaw Convention, the Hague Protocol, the Guadalajara Convention or the MP4 or MC99. Per IATA Resolution, 250 French Gold Francs is considered to be equal to 19 SDR.

Other than the above increase to the airline liability limits, claims on partial loss became equal to total loss and will be accepted within 120 days from the issuance date of the AWB. Formerly, partial loss was treated as similar to a damage claim which needed to be submitted within 14 days after the cargo was delivered to the consignee.

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