The object of the regulation is to set minimum insurance requirements for air carriers and aircraft operators regarding coverage for passengers, baggage, cargo and third parties. The rule applies to all operators flying into, out of, within or over the territory of a member state. The new insurance levels are tied directly to the mtow of the aircraft and a special drawing right (SDR). The SDR is a certain value defined by the International Monetary Fund. Liability requirements for passengers, baggage and cargo are spelled out with EEC Regulation 785/2004, Articles 6 and 7. Before scheduling a flight to Europe, check with your insurance underwriter to ensure your company meets these new insurance requirements.