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Passenger Seat Surcharge

Passenger Seat Surcharge eliminated effective 01/01/2015

The per passenger seat surcharge, Code 9108,  was established in 1947 concurrent with the introduction of Code 7421 – Aircraft or Helicopter Operation – Transportation of Personnel in Conduct of Employer’s Business – Flying Crew.  The purpose of the surcharge was to provide a catastrophe load for the exposure of the insured’s employees (other than the flight crew) who may be injured while passengers on the insured’s noncommercial, nonscheduled aircraft. Analysis of the surcharge premium and loss amounts indicates an insignificant amount of losses being reported to the applicable statistical codes, compared to the associated premium.

Effective 1/1/2015, the per passenger seat surcharge is eliminated.  In the event of an aircraft loss, the loss would be reported to the class code of the injured employee rather than to Code 9108.
 

The material in this document has been prepared and shared for informational purposes only and should not be relied upon as legal advice on any particular situation.