Aviation Insurance covers aircraft for loss or damage, loss of life or injuries for crew and passengers on board and on the ground, loss or damage to any cargo, mail and baggage carried and liability towards airports, installations, and the general public. Cover applies both whilst the aircraft is airborne and whilst grounded.
The following are the typical policies available. Each policy covers loss of or damage to the aircraft on an All Risks basis and any associated liabilities from their ownership or use.
General Aviation Insurance
This policy is designed for privately owned aircraft, flying schools and clubs. This include coverage for helicopters, gliders and hot air balloons.
This policy is intended for fleets of commercial aircraft by private or state operators. It will generally include additional covers for a wider spectrum of crew and cargo and a wider level of liability cover to include the varied range of operations and destinations.
This is a liability policy for those engaged in the design and manufacture of aircraft and for those offering ancillary services such as airports, airfields, air-traffic control, refuellers, maintenance and other aviation services.
Loss of Use Insurance
This policy covers the loss of earning power attributable to an aircraft being out of action whilst it is either awaiting or undergoing repairs following an accident.
Loss of Licence
This is a policy designed to protect cockpit and cabin crew from loss of earnings due to illness, injury or death.
There are other types of aviation polices that are intended for aviation service providers.
Frequently Asked Questions
It is recommended that the insured value of an aircraft is arrived at by finding out the cost of purchasing a plane with similar specs and of the same age at the time of taking out the insurance, and revising the amount yearly upon renewal. The hull rate of an aviation insurance is primarily based on value so the amount you insure your aircraft for will have a significant impact on the amount of premium you pay.
Although some insurers may be willing to consider this, more often than not, deductibles and rates are fixed and insurers would seek a minimum level of premium for an aviation enquiry, below which they would not be prepared to take on the risk.
It is usual to list down the names of the pilots but in the event that there are additional pilots who may pilot the craft, insurers may elect to include an open pilot warranty allowing unnamed pilots subject that these have an agreed minimum level of qualifications and flight hours.
No. There will always be exceptions and exclusions. If the use, pilot or flight zone agreed at inception are not adhered to or there is any misrepresentation these can all be used as defence to a claim as are general exclusions such as those relating to wear and tear, war and radiation.
To effect renewal you may: