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The Commission for Aviation Regulation (CAR) is responsible for regulating airline activities in Ireland. One of the main functions of CAR is to enforce the conditions of the Civil Aviation (Carriers` Liability) Act 1959, which stipulates that airline operators must have a valid insurance policy to cover any liability arising from their operations.
To ensure that airline operators comply with this law, CAR requires all airlines operating in Ireland to submit a CAO Administrative Agreement. The CAO Administrative Agreement is a legal document that outlines the terms and conditions of the airline`s agreement with its insurers and CAR.
The agreement should contain detailed information about the insurance policy, such as the coverage amount, the types of liability covered, and the insurance provider`s contact details. It also specifies the conditions that must be met for the insurance policy to remain valid, such as the need to pay premiums on time and submit claims within a specific timeframe.
If an airline operator fails to comply with the conditions of the CAO Administrative Agreement, it can face significant penalties. These penalties can include fines, suspension or revocation of the operator`s license, or even criminal charges in severe cases.
Therefore, it is crucial for airline operators to take the CAO Administrative Agreement seriously and ensure that they comply with all the requirements stipulated in the agreement. Failure to do so can result in significant financial and reputational damage to the airline operator.
In conclusion, the CAO Administrative Agreement is an essential legal requirement for airline operators in Ireland. It is vital that operators take the agreement seriously and comply with all the conditions outlined in the document. By doing so, they can avoid severe penalties and ensure the safety and well-being of their customers.