Retains Warsaw Convention and Hague Protocol systems but abolishes financial limits for passenger death/injury and obliges air carriers to make advance payments to alleviate economic need. It follows the IATA Agreements and seeks to harmonise the obligations of community air carriers regarding liability for accidents to passengers given that the Warsaw Convention applies only to international flights. All defences are waived for the first 100,000 SDRs of each claim but the defence under Article 21 (proof that all necessary measures to avoid the damage had been taken) of the Warsaw Convention and Hague Protocol of contributory negligence by the passenger is retained. The Regulation lays down minimum insurance requirements.