Chapter 16 - Aircraft Insurance

Although Aircraft Registration & Leasing staff do not carry out insurance-related activities, questions about aircraft insurance often arise. The following provides basic information about aircraft insurance. For more detail, and to be able to ensure that a client is aware of the specific provisions for any given situation, the CARs references and the Air Transportation Regulations should be consulted, as applicable, and as mentioned below.


  1. public liability insurance which protects the owner and operator of the aircraft in the event that the aircraft causes damage to persons or property (mandatory);
  2. passenger liability insurance which protects the owner and operator of the aircraft if a passenger on board the aircraft  suffers from injury or death (mandatory if operating a commercial air service or operating an aircraft over 5,000 lbs.). Note: Passenger liability insurance is not mandatory for aerial work operators certified under CARs 702, as they do not carry passengers.


Who requires insurance?

  • Canadian and foreign aircraft operated in Canada, and
  • Canadian aircraft operated in a foreign country.

Where are insurance requirements specified?

For air operators, operating pursuant to subparts 703, 704 and 705 of the Canadian Aviation Regulations (CARs), insurance requirements are outlined in section 7 of the Air Transportation Regulations. For other air operators, and privately operated aircraft, requirements are outlined in CARs 606. They differ depending on aircraft weight and number of passengers.

Does Transport Canada require copies of insurance documents?

No. Transport Canada does not require copies of insurance documents.

It should be noted that air operators operating pursuant to subparts 703, 704 and 705 of the CARs are required to send insurance documentation to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9 - telephone 1-888-222-2592; fax (819) 953-9705.

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