Warsaw , 24.10.14 PZU SA

1. Aviation Liability and Insurance in PolandInternational Air Law Conference 85 Anniversary of Warsaw Convention Warsaw, 24.10.14 PZU SA

2. PZU SA Overview • 1.1 Brief description of the PZU Group • 1.2 Polish Insurance Market • 2. AviationLiability and Insurance in Poland2.1 Montreal Convention • 2.2 The European Union • 2.3 PolishAviation Law Act2.4 Regulationitem 67 from 20132.5 Ariel Form2.6 Regulationitem 1123 from 20122.7 General terms and conditions of AviationInsurance

3. PZU Group • Founded in 1803 • Gross writtenpremium* of 8,483 m PLN /~1,998 m EUR • Net profit* of 1,720 m PLN /~ 407 m EUR • S&P rating: A / stable • *H1 2014

4. PZU’s market share (non-life insurance)

5. Polish Insurance Market SECTION II: Other personal insurance and property insurance Class 11: Third party liability insurance of any type, arising out ofthe possession and use of aircraft, including insurance of carrier'sliability. COMPENSA TU S.A. Vienna Insurance Group STU ERGO HESTIA SA GENERALI T.U. S.A. PZU SA TUiR WARTA S.A.

6. Montreal Convention 1999 • Article 50 - Insurance • the requirement for carriers to maintain adequate insurance covering their liability under thatConvention

7. The European Union • RegulationEEC No 2407/92 on licensing of aircarriers • Regulation EC No 785/2004 on insurance requirements for air carriers and aircraft operators

8. Polish Aviation Law Act • Polish Aviation Law Act – amendment from 2011, • article 209. • Third party insurance is requested for: • aircarriers, • users of anaircraft, • entrepreneursprovidinggroundsupport service, • institutionsprovidingairnavigation services.

9. Polish Aviation Law Act • The amendmentsintroduceanobligationof third party liabilityinsurance for damagescaused by delay. • The minimum insurancecover in respect of liability for passengers, baggage and cargo (non-commercialoperations by aircraft with a MTOM of 2 700 kg or less: 785/2004: 250 000 SDR; Poland: 100 000 SDR).

10. Regulation item 67 • Issued by the Finanse Minister • Since 16.01.2013 • The obligatory third party insurance of aircarriers, entrepreneursprovidinggroundsupport service and institutionsprovidingairnavigationservices.

11. Regulation item 67 • The regulation determines the detailed scope of the obligatory third party liability insurance for: • air carriers for damages caused by delay in carriage of passengers, baggage and cargo, • air carriers for damages caused by delay in air carriage of mail, • entrepreneurs providing ground support services for damages inflicted in connection with the aviation activity conducted, • institutions ensuring air navigation services for damages inflicted in connection with the aviation activity conducted.

12. Regulation item 67 • The coverage for damagescaused by actionoromission of the insured in the insurance term. • The minimum guaranteed sum (on the example of air carriers for damages caused by delay in carriage of passengers, baggage and cargo): • SDR 4,694 per each passenger –delay in carriage of passengers; • SDR 1,131 per each passenger –delay in carriage of baggage; • SDR 19 per each kilogram of cargo –delay in carriage of cargo.

13. Regulation item 67 • The followingdamagesare not covered: • consisting in paying contractual penalties, • inflicted as a result of an action or omission after expiry,withdrawal or suspension of the license, • causedby the fault of the sender or addressee, • resulting from a hiddendefectornaturalproperties of the mail.

14. ARIEL Form • AirportOwners and Operatorsliability • Section 1 – Premisesliability • Section 2 – Hangarkeepersliability • Section 3 – Product liability • Additional /Standard AviationClauses

15. Regulation item 1123 • Issued by the Finanse Minister • Since12.10.2012 • The obligatory third party liabilityinsurance of entrepreneursapplying for conclusion of an agreement on conduct of civilaviation security activity in airports. • Cover for personswhom the insureduses to perform the civilaviationsecurityactivities in airports.

16. Regulation item 1123 • The followingdamagesare not covered: • after withdrawal of the license, • resulting from war, civilcommotion, riot, terrorism, • nuclearorrelateddamages, • caused by asbestos, • consisting in paying contractual penalties, • inflicted by the insured to its employees.

17. Regulation item 1123 • The minimum guaranteed sumamounts to the PLN • equivalent ofSDR 5,000 per each 1,000 passengers • handled or 100,000 kg of goods and mail handled in the • year preceding the conclusion of the insurance agreement.

18. General terms and conditions of AVIATION INSURANCE • Aircraft hullinsurance • Thirdparty liability insurance of a user • Thirdparty liability insurance of a carrier • Thirdparty liability of a carrier with respect to transporting cargo • Consequencesof personal accidents of the crew members (PA) • Personaleffects of the crew members

19. General terms and conditions of AVIATION INSURANCE exclusions (examples) • War, socialunrest, civil war, revolution, strikesor a state of emergency; • Terroristorsabotageactionor hi-jacking of the aircraft • Polution of the natural environment

20. Thank you! Contact Details: PZU Al. Jana Pawła II 24 00-133 Warsaw, Poland Corporate Clients Department Tomasz Suska tsuska@pzu.pl Tel.: (+48 22) 582 26 11 www.pzu.pl