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WHAT IS AVIATION INSURANCE?

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 is insurance coverage geared
specifically to the operation of aircraft and the risks
involved in aviation. viation insurance policies are
distinctly different from those for other areas of
transportation and tend to incorporate aviation
terminology, as well as terminology, limits and clauses
specific to aviation insurance.
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veti
 as si e .
T e c
veti
 as a a reeet t
establis
itr ce i t e early years f t e ters, c
 iti
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f liability
20t Cet ry. T e first aviati  f
r carria e by air, t is as t e first rec
iti

is race licy as ritte by
f t e airlie i stry as e k
 it t
ay.
Ll y 's f L 
 i 1911. T e V By 1933 realisi t at t ere s
l be a
secialist i stry sect
r t e terati
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ay st
e riti aviati
 Ui

f Marie srace (UM set  a

licies i 1912 after ba eat er aviati
 c
ittee, a by 1934 ei t
a t e res lti cras es at a air
r
ea aviati
 israce c
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ls ere f
rally establise a te
eet ca se l
sses
 ay
f terati
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f §viati
 srers
t
se first 
licies. (U§ as b
r
is believe t at t e first aviati
 
lices
ere
V
t er
ritte by t e arie israce

 er riti c
ity
V he ondon insurance market is still the largest single centre for
aviation insurance. he market is made up of the traditional loyd's
of ondon syndicates and numerous other traditional insurance
markets.
V hroughout the rest of the world there are national markets
esta lished in various countries, this is dependent on the aviation
activity within each country, the U has a large percentage of the
world's general aviation fleet and has a large esta lished market.
V o single insurer has the resources to retain a risk the size of a major
airline, or even a su stantial proportion of such a risk. he
catastrophic nature of aviation insurance can e measured in the
num er of losses that have cost insurers hundreds of millions of
dollars (viation accidents and incidents
V Most airlines arrange "fleet policies" to cover all aircraft they own or
operate
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V his coverage, often referred to as 9
9


9 covers aircraft
owners for damage that their aircraft does to third party property,
such as houses, cars, crops, airport facilities and other aircraft struck
in a collision. t does not provide coverage for damage to the insured
aircraft itself or coverage for passengers injured on the insured
aircraft. fter an accident an insurance company will compensate
victims for their losses, ut if a settlement can not e reached then the
case is usually taken to court to decide lia ility and the amount of
damages. mu lic lia ility insurance is mandatory in most countries
and is usually purchased in specified total amounts per incident, such
as $1, , or $5, ,
 TYPES OF INSURANCE
V m 



 

V massenger lia ility protects passengers riding in the accident aircraft who
are injured or killed. n many countries this coverage is mandatory only
for commercial or large aircraft. overage is often sold on a "per-seat"
asis, with a specified limit for each passenger seat.
V p

 

p
V p coverage com ines pu lic lia ility and passenger lia ility coverage
into a single coverage with a single overall limit per accident. his type of
coverage provides more flexi ility in paying claims for lia ility, especially
if passengers are injured, ut little damage is done to third party property
on the ground
^ 
 
 



V his provides coverage for the insured aircraft against damage
when it is on the ground and not in motion. his would
provide protection for the aircraft for such events as fire, theft,
vandalism, flood, mudslides, animal damage, wind or
hailstorms, hangar collapse or for uninsured vehicles or aircraft
striking the aircraft. he amount of coverage may e a lue
ook value or an agreed value that was set when the policy was
purchased.[2]
V he use of the insurance term "hull" to refer to the insured
aircraft elies the origins of aviation insurance in marine
insurance. Most hull insurance includes a deducti le to
discourage small or nuisance claims.
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V his coverage is similar to ground risk hull insurance not
in motion, ut provides coverage while the aircraft is
taxiing, ut not while taking off or landing. ormally
coverage ceases at the start of the take-off roll and is in
force only once the aircraft has completed its su sequent
landing. Due to disputes etween aircraft owners and
insurance companies a out whether the accident aircraft
was in fact taxiing or attempting to take-off this coverage
has een discontinued y many insurance companies



 


ia ility is asically categorized in two aspects

V n regard of passengers, aggage and cargoes carried on the
aircraft.
V ircraft hird marty ia ility - the lia ility for any sort of
property damage or to the people outside the aircraft
V he exceptions of ia ility insurance are:
V ny kind of loss incurred y the own property of the insured.
V War and allied risks associated with it.
V oise and pollution unless resulted from crash, fire or any kind
of explosions registered inside the air plane,
The exceptions of Liability
insurance are:
V ny kind of loss incurred y the own property of the
insured.
V War and allied risks associated with it.
V oise and pollution unless resulted from crash, fire or
any kind of explosions registered inside the air plane,
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In-flight coverage protects an insured
aircraft against damage during all
phases of flight and ground operation,
including while parked or stored.
Naturally it is more expensive than
non-in-motion coverage since most
aircraft are damaged while in motion
Exceptions to such risks are
V Wear and tear of the aviation craft are not to e included in the
aviation insurance.
V Mechanical reakdown are usually compensated y this type of
insurance.
V ngestion damage - caused y stones, grit, dust, sand, ice, is also
excluded.
V he hull "ll isks" policy will pertain to the exclusion of war
damages. War here means any kind if civil war, strikes, riots,
distur ances, confiscations, hi- jacking or any kind of political
or terrorist attacks.