The country’s parliamentary finance committee has given the nod to covering the policy.
The parliamentary finance committee of Israel has green lighted a strategy to offer a $6 billion state guarantee to cover war insurance against risks to Israeli airlines, said the country’s Finance Ministry.
This plan will help to make certain that airlines in the country will have financial protection.
The guarantee framework will make it possible for Israeli airlines to obtain war insurance policies against such risks. In this way, the goal is to keep up regular flights in Israel.
The recent military action that has broken out between Israel and the Hamas Palestinian militant group has caused insurers to switch gears as per their policy language in the face of wartime. El Al Airlines, Israir and Arika have all stated that their policy terms outline that in times of war, insurers are entitled to cancel policies, provided they give seven days of notification.
This has placed the airlines at risk of being unable to operate as they would not have any coverage to protect them as long as the military action continues to take place.
The Finance Ministry sought state guarantees to ensure the war insurance would stay in place.
The country’s Finance Ministry acted quickly to seek and obtain the guarantees necessary from the state. Lawmakers were presented with the option and gave their approval so the airlines will continue to have the coverage they need so they can keep up regular flights.
Though several global airlines have announced that they have cancelled their flights to and from Tel Aviv, the three main carriers in Israel will now continue to fly because they have the war insurance coverage in place. In fact, those airlines have been adding more flights than usual in order to make it possible for stranded Israelis to fly back home again. This is particularly important in the country as many of the stranded individuals are returning as military reservists.
The government made a priority of approving this plan quickly to make certain that the airlines would be able to continue their operations without interruption, even as insurers were pointing out that they were able to give their seven days’ notice.