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(1) Subject to section 28, a person shall not fly or cause or permit another person to fly an aircraft in or out of the Republic unless there is in force in relation to the flying of the aircraft by that person or that other person a valid certificate of insurance issued by an authorised insurer.

(2) For the purposes of subsection (1), a valid certificate of insurance shall, subject to the restrictions or conditions specified in the certificate of insurance, insure the owner of the aircraft against liabilities incurred in respect of loss or damage caused to persons or property by, or by a person in, or an article or person falling from, the aircraft while in flight, taking off or landing.

(3) A person who contravenes a provision of subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding one thousand penalty units or to a term of imprisonment not exceeding five years or to both the fine and the imprisonment.

(4) For the purposes of this section, "authorised insurer" means a person or body of persons carrying on a marine, aviation or transit insurance business approved by the Authority.