Project On Aviavtion Insurance

SAFE SKIES WITH AVIATION INSURANCE
INTRODUCTION OF INDIAN AVIATION SECTOR
A proud Air India Flying
Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around !" share of the domestic aviation mar#et. $arlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people.
%
&he origin of Indian civil aviation industry can be traced bac# to %'%(, when the first air flight between )arachi and *elhi was started by the Indian +tate Air +ervices in collaboration with the ,) based Imperial Airways. It was an e-tension of .ondon-)arachi flight of the Imperial Airways. In %'/(, 01* &ata founded &ata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying both air cargo and passengers. &hese were &ata Airlines, Indian 2ational Airways, Air service of India, *eccan Airways, Ambica Airways, 3harat Airways, 4rient Airways and 5istry Airways. After partition 4rient Airways shifted to Pa#istan. In early %'67, 8overnment of India established a 9oint sector company, Air India International .td in collaboration with Air India :earlier &ata Airline; with a capital of 1s ( crore and a fleet of three .oc#heed constellation aircraft. &he inaugural flight of Air India International .td too# off on 0une 7, %'67 on the 5umbai-.ondon air route. &he 8overnment nationalized nine airline companies vide the Air <orporations Act, %'!/. Accordingly it established by %''!, several private airlines had ventured into the aviation business and accounted for more than %= percent of the domestic air traffic. &hese included 0et Airways +ahara, 2$P< Airlines, $ast West Airlines, 5odi.uft Airlines, 0agsons Airlines, <ontinental Aviation, and *amania Airways. 3ut only 0et Airways and +ahara managed to survive the competition. 5eanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose mar#et share to 0et Airways and +ahara. &oday, Indian aviation industry is dominated by private airlines and these include low cost carriers such as *eccan Airlines, 8oAir, +pice0et etc, who have made air travel affordable.
HISTORY OF AVIATION INSURANCE

Aviation Insurance was first introduced in the early years of the (=th <entury. aviation &he first insurance
policy was written by .loyd>s of .ondon in %'%%. &he company stopped writing aviation policies in %'%( after bad weather and the
A light flight of 1911
resulting crashes at an
air meet caused losses on many of those first policies. It is believed that the first aviation polices were underwritten by the marine insurance ,nderwriting community. In %'(' the Warsaw convention was signed. &he convention was an agreement to establish terms, conditions and limitations of liability for carriage by air, this was the first recognition of the airline industry as we #now it today. 3y %'// realising that there should be a specialist industry sector the International ,nion of 5arine Insurance set up an aviation committee, and by
%'/6 eight $uropean aviation insurance companies and pools were formally established and the International ,nion of Aviation Insurers was born. &he .ondon insurance mar#et is still the largest single centre for aviation insurance. &he mar#et is made up of the traditional .loyds of .ondon syndicates and numerous other traditional insurance mar#ets. &hroughout the rest of the world there are national mar#ets established in various countries, this is dependent on the aviation activity within each country, the ,+ has a large percentage of the world>s general aviation fleet and has a large established mar#et. 2o single insurer has the resources to retain a ris# the size of a ma9or airline, or even a substantial proportion of such a ris#. &he <atastrophic nature of aviation insurance can be measured in the number of losses that have cost insurers hundreds of millions of dollars :Aviation accidents and incidents;. 5ost airlines arrange ?fleet policies? to cover all aircraft they own or operate.
RISK COVERED IN AVIATION INSURANCE

&here are different types of ris# which ta#es place in aviation insurance and those ris#s are covered in aviation insurance they are as follows@
AVIATION INSURANCE
NORMAL RISKS LIABILITIES

&he
above diagram suggests that there are mainly two #inds of ris#s which an aviation insurance company will cover which has been divided into two parts. &hey are@ %. 2ormal 1is#s (. .iabilities &hese two ris#s are further divided into various parts which involve various ris#s and liabilities they are which is e-plained in detail later on.
!
NORMAL RISKS
&hese ris#s are those ris#s which every aviation company in this industry carries it on its bac# when it enters into the business. &hese ris#s may differ from time to time and situation to situation. &hese are %. Aull 1is#s (. Aull War 1is#s /. +pares All 1is#sB War 1is#s 6. Aull total .oss 4nly cover &hese ris#s are those ris#s which ta#es place when these ta#es place when any of these factors comes into action. 3ecause all the above ris#s mentioned above are unpredictable and may occur at any time
HULL RISKS
&he hull ?All 1is#s? policy will usually refer to something li#e ?all ris#s of physical loss or damage to the aircraft from any cause e-cept as hereinafter e-cluded?. Airline hull ?All 1is#s? policies are sub9ect to a standard level of deductible :that is an uninsured amount borne by the Insured; applicable in the event of partial :non-total; loss. <urrently, this deductible can range from D!=,=== in respect of a &win 4tter to D%,===,=== in respect of a wide-bodied 9et aircraft, such as a 3oeing 6 . *eductibles too can be reduced by means of a separate ?*eductible Insurance? policy. &he *eductible Insurance Policy is effected to reduce the large ?All 1is#s? policy deductibles to a more manageable level. For e-ample the ,+D%,===,=== applicable to a 3oeing 6 can be reduced to say ,+D%==,===. &he term ?all ris#s? can be misleading. ?All ris#s of physical loss or damage? does not include loss of use, delay, or conseEuential loss. ?8rounding? is a good e-ample of conseEuential loss. +ome years ago when there had been a couple of accidents involving *<%= Aircraft, the <ivil Aviation Authorities throughout the world imposed a ?grounding order? on that type of aircraft.
&hat order in effect said until certain things had been established and chec#ed out those aircraft could not fly. &he operators of those aircraft were unable to fly them and as a conseEuence of that they ?lost? the use of them. 3ut the aircraft were not ?lost? - it was #nown precisely where they were but they could not be used to carry passengers. +uch an eventuality would not be covered by an ?all ris#s? policy because in such circumstances there is no PAF+I<A. loss or damage. What the policy will cover is the reinstatement of the aircraft to its ?preloss? condition, if repairable damage is involved, or some other form of settlement in the event that more substantial damage is sustained. $-actly what form of settlement will depend on the policy conditions. &oday, the vast ma9ority of airline hull ?all ris#s? policies are arranged on an ?Agreed Galue 3asis?. &his provides that the Insurers agree with the Insured, for the policy period, the value of the aircraft and as such, in the event of total loss, this Agreed Galue is payable in full. ,nder an Agreed Galue policy the replacement option is deleted.
Concorde plane disaster in France, 25 July 2000
&he hull ris#s does not cover some ris#s whish are as follows %. Wear, tear and gradual deterioration - in common with most non-marine policies :which includes aviation insurance; these perils are thought to be a trading e-pense and not a peril to be insured. (. Ingestion damage - caused by stones, grit, dust, sand, ice, etc., which result in progressive engine deterioration is also regarded as ?wear and tear and gradual deterioration?, and as such is e-cluded. Ingestion damage caused by a single recorded incident :such as ingestion of a floc# of birds; where the engine or engines concerned have to shut down
'
is not regarded as wear and tear and is covered sub9ect to the applicable policy deductible. /. 5echanical 3rea#down - li#ewise is thought by aviation insurers to be an operating e-pense, but subseEuent damage outside the unit concerned is usually covered. Aowever, it is possible to obtain insurance coverage against mechanical brea#down of engines by way of a separate policy. &his coverage has a high degree of e-posure and as a result is relatively e-pensive. &he ma9ority of airlines do not purchase it probably viewing such e-posure as a part of the ?engineering?
%=
HULL WAR RISKS

&he hull ?All 1is#s? policy will contain the e-clusion of ?War and Allied Perils?. 8enerally spea#ing, throughout the aviation insurance world, ?War and Allied Perils? have a defined meaning. In the .ondon Aviation Insurance 5ar#et the standard e-clusion is called the War, Ai-9ac#ing and 4ther Perils $-clusion <lause :currently #nown by its reference - AG2673 for short; this lists and defines these so-called war and allied perils. It say, 1. War - this includes civil war and war with no formal declaration. 2. &he detonation of a weapon 3. +tri#es, riots, civil commotions and labour disturbances. 4. Political or terrorist acts. 5. 5alicious or sabotage acts. 6. <onfiscation, nationalization, reEuisition and the li#e by any government. 7. .Ai9ac#ing or ,nlawful e-ercise to control plane other than crew members of the flight concerned.
%%
The brutal second plane crash in
orld Trade Center, !e" #or$, %nited &tates of A'eica, 11 &epte'ber,2001
%(
&he ma9ority of the e-cluded ?War and Allied Perils?, other than the detonation of a nuclear weapon and a war between the 8reat Powers :the aviation insurance world identifies these as the ,.+.A., the 1ussian Federation, <hina, France and the ,);, can normally be covered by way of a separate ?War and Allied Perils? policy. Aircraft deductibles are not normally applied in respect of losses arising out of ?War and Allied Perils?. 4ther e-clusions insurers will usually apply are, as follows@%. <onfiscation etc. by the ?state? of registration :this e-clusion can often be deleted in respect of financial interests - albeit, in some instances at an additional premium charge; (. Any debt, failure to provide bond or security or any other financial cause under court order or otherwiseH /. &he repossession or attempted repossession of the Aircraft either by any title holder or arising out of any contractual agreement to which any Insured protected under the policy may be partyH 6. *elay and loss of use. :Although there is often an e-tension to the policy for a limited amount for e-tra e-penses necessarily incurred following confiscation or hi9ac#ing;. &he aircraft hull ?War and Allied Perils? policy will cover the aircraft on an ?Agreed Galue? basis against physical loss or damage to the aircraft occasioned by any of these perils. &his statement is made carefully and deliberately in order to highlight the essential difference from a ?Political 1is#s? Insurance.
%/
SPARES ALL RISKS

First of all we must identify what we mean by a ?spare? or perhaps - ?when is a spare not a spare? to which a simple answer is ?when it is attached?. ,nder most ?Aull? policies the word ?Aircraft? means Aulls, machinery, instruments and the entire eEuipment of the aircraft :including parts removed but not replaced;. 4nce a part is replaced it is no longer, from an insurance viewpoint, part of the aircraft. <onversely once a spare part is attached to an aircraft as a part of that aircraft :not in the hold as cargo or on the wing as an e-tra pod; it is no longer a ?spare?. If the eEuipment is insured on the hull ?All 1is#s? policy the automatic transfer of coverage from ?aircraft? to ?spare? and vice versa is automatically accomplished. Aaving established when a spare is a spare how is it insured as suchI ,sually in one of two ways. $ither under a ?spares? section of a hull policy or by a separate +pares Policy. In either case the scope of coverage will probably be similar. All 1is#s whilst on the 8round and in &ransit for a limit of Jso muchK any one item or sending or any one location. War 1is#s can also be covered :in respect of transits;, +tri#es, 1iots, <ivil <ommotions can be covered in accordance with standard mar#et clauses. +pares coverage is usually sub9ect to a small deductible e-cept, however, in respect of ground running of spare engines when the appropriate Ingestion deductible will be applied. +pares are normally covered on an agreed value basis - usually their replacement cost :be it new or reconditioned as is reEuired;.
%6
A flight coc$pit "ith its spare parts
An engine "ith its spare parts "or$ing inside
+pares installed on any aircraft are not covered by the +pares Insurance. &hey become, from an insurance standpoint, a part of the aircraft upon which they are installed and a part of the Agreed Galue for which it is insured. &his becomes particularly important if the parts are loaned to another airline.
%!
HULL TOTAL LOSS ONLY COVER
The Aerocor (Aerolineas Cordeillra) *C+, used in -0.s and /0.s
&his is similar to Aull All 1is#s cover given above but will respond only to total losses of aircraft, whether actual, constructive or arranged. &his is particularly given for old aircraft since the old aircraft are heavily depreciated and insured for low sums and premium on such low sums would result in low premium, which would be inadeEuate for the partial losses. &he ratio of partial losses to total losses in such old aircraft is distorted.
%C
LIABILITIES
.iabilities are those ris#s which may arise due to some conseEuences or some LreasonsM the company has to face. &hose LreasonsM are as follows %. Aircraft .iability (. $-cess .iability /. Aerospace 5anufacturers products and 8rounding .iability 6. Airport 4wners and 4perations .iability !. Product .iability A liability is a present obligation of the enterprise arising from past events, the settlement of which is e-pected to result in an outflow from the enterprise of resources embodying economic benefits. &he e-planations of all the liabilities are given below
AIRCRAFT LIABILITY
Aere in aircraft liability there are many other liabilities involved which are further divided into four parts. &hey are
AIRCRAFT 3RD PARTY LIABILITY
PASSENGE R BAGGAGE CARGO AND MAIL
&hese are the #inds of liabilities which are covered in aviation insurance the e-planation in detail is given below
%7
PASSENGER LIABILITY
<overage
for
aircraft operators in the event a passenger is in9ured, #illed or disabled an

0assengers in1ured in 2Tur$ish Airlines 0lane Crash in !etherlands2 Feb 25, 2009
during
an
accident while aboard insured aircraft. policies liability into two Aviation divided coverage
parts--general liability :e-cluding passengers;, and passenger liability.
%'
A Passenger .iability policy covers incidents resulting from the transportation of passengers by land, sea or air and can often be included as part of a aviation insurance policy. Aowever care must be ta#en to chec# that the motor policy wording does not e-clude fare-paying passengers, which is often the case. It is unli#ely that an underwriter will be prepared to cancel or amend the wording of a standard motor vehicle policy. For this reason *aily <over policies are specifically for to cater for fare-paying passenger liability.
THIRD PARTY LIABILITY

&his program offers /rd Party .iability insurance coverage for noncommercial operations only. Pilot and passenger in9uries and aircraft physical damage are not covered. &his member benefit program is designed to allow noncommercial pilots the benefits that insurance coverage can offer. While pilot and passenger in9uries and damage to the aircraft itself are not covered under a &hird Party program, financial responsibilities bodily in9ury or property damage caused by the aircraft for which the pilot is found to be legally liable to pay to others is covered. Additional insured parties such as landowners, municipalities and airports, can also be covered under this type of policy. 3ecause the possession of &hird Party coverage provides landowners with a <ertificate of
(=
Insurance showing that coverage is in place, access to more flying sites are accessible for the operation of your aircraft
Concorde crash on a hotel near 0aris Airport 1ust fe" 'inutes after the ta$e off "hich resulted in destruction of th hotel it fell on, 25 July, 2000
When one engages in recreational activities reEuiring the use of a vehicle whether it be land, water, or air sports related - there are inherent factors that could result in liability issues. 2o one wants to en9oy an activity and then have the pleasure of it clouded with possible situations that would result in liability claims against their hard earned savings. &his &hird Party liability insurance for ,+,A members can help relieve the worry of possible claims against the pilot should this
(%
type of situation occur. Additionally, access to airports, flight par#s, and flying events often reEuire liability coverage. 5any states reEuire insurance of this nature 9ust to operate an airplane of any description. &hird party liability coverage is also less e-pensive than full coverage, and therefore allows the members :insurance holders; the opportunity to en9oy the thrill of aviation without the worry of liability concerns or the e-pense of high-priced insurance. &he people can be only eligible who are a registered, certificated or licensed pilot are eligible. +port Pilot +tudents who are endorsed to solo are also eligible. Pilot registration can be with any recognized organization.
((
BAGGAGE LIABILITY
&his #ind of liability may include various reasons in the happening. &hey are as follows@
1. D !"#$
If your bags are delayed, try not to panic. &he airlines typically have ways to trac# them, and about '7 percent of all misplaced luggage is returned eventually. If your bags are on the ne-t flight, you could have them within a few hours. If they>ve been sent to the wrong airport, it could ta#e a couple of days. 5a#e sure to file your claim immediately at the airport and to give the attendant a hotel or home phone number and address.
(/
0assengers hit by baggage delay
&he airlines will typically bring you your luggage when it is foundH you will rarely need to return to the airport to pic# it up. Additionally, many airlines will reimburse any une-pected e-penses caused by the loss or delay :#eep your receiptsN;. 3ut be careful here -- the airline sometimes has the option to deduct any reimbursement or stipend from any subseEuent awards.
(6
3efore you leave the airport, be sure you #now how to chec# on your bag>s statusH some airlines have an online system while others will provide you with a phone number to call for updates.
(. L%$& B"''"'
If the airline loses your bags, ma#e sure you get a written claim for damages. &his may reEuire a different form than the original ?missing luggage? form. &his can be done at the airport or by mail. 4n domestic flights, the airline baggage liability is capped at D/,/== per person. 4n international trips, the liability limit may vary, as it is governed by various international treaties, including the 5ontreal and Warsaw <onventions.
Fou may
need to
produce receipts to prove the value of items you had in your suitcase. If you have them, include copies in any documentation you send to the airline. :)eep
A place consisting lost baggage.s in airport
in mind that you will be reimbursed for the
depreciated value of your items -- so the airline won>t give you the full D%,=== you paid for that suit you purchased two years ago.; Fou can purchase ?e-cess
(!
valuation? protection if your chec#ed baggage is worth more than these limits :but before doing so, ma#e sure the items aren>t already covered by your homeowner>s or travel insurance policy;. &he airlines typically have a long list of items for which they will not be held responsibleH these include 9ewelry, money, heirlooms and other valuables. &hese sorts of items should always be pac#ed in your carry-on bag.
/.
S&%! ( B"''"'
Aead directly to the baggage 5any carousel airlines when you get off your flight. scan bags when they>re loaded into the baggage claim area and #eep
%nclai'ed baggage ready to be stolen
records,
especially
at
larger airports. 4nce you>ve left the baggage claim area, your claim is no longer with the airline, but with the police.
(C
6. D")"'
* B"''"'
A da'aged bag due to hush 'ade by the airport "or$ers in the green belt
4nce you>ve gotten your bags off the carousel, immediately chec# them for damage or other signs of tampering or mishandling. 1eport any damage before leaving the airportH airline customer service will often want to inspect the bag. )eep in mind that most airlines won>t cover minor wear and tear.
!. C"+'% "(* M",! D")"'
Consign'ent da'aged "hile cargo or 'ail fro' one place to another
According to,
(7
Although Martinair Cargo will give its best efforts to deliver your shipment at its final destination in good order and condition, sometimes damage / depreciation, delay or (partial) loss unfortunately occurs. n case such an irregularity should affect your shipment, a claim can be filed with Martinair Cargo Claims. n order to facilitate and speed up the claim handling process, we !indly would li!e to draw your attention to the following" #hat to do in case you receive your shipment with damage $ Ma!e sure that the damage of the shipment is noted on the release form/delivery receipt of the warehouse. $ f possible, please ta!e (digital) pictures of the damaged shipment upon
receipt of your cargo at the final destination, as recorded on the Airway %ill. $ &o strengthen your case, you can appoint an independent and ob'ective
surveyor. (owever !indly be advised that the decision to appoint a surveyor is up to the claimant as the claimant always has to provide independent evidence in order to prove the e)tent of the damage as claimed for. $ *end a written preliminary claim to Martinair Cargo Claims within $+ days
from the date of delivery at the final destination.
Measure the temperature of the shipment upon release and measure the
bo)es on the outside of the pallets in case of complete pallet delivery. ,lease record the temperature on the release form/delivery receipt of the warehouse.
('
/=
&o strengthen your case, you can appoint an independent and ob'ective surveyor to chec! the condition of your perishable shipment. ,lease ma!e sure that your shipment will be surveyed as soon as possible but not later than - hours after arrival at your premises" perishables are time sensitive and/or temperature sensitive commodities, therefore only a survey done shortly after arrival of the cargo will be considered as an ob'ective survey.
/%
#hat to do in case of (partial) loss/pilferage of your shipment .oss" . $ 0 1 *end a preliminary claim to Martinair Cargo Claims within $02 days from the date of issue of the Master Air #aybill. ,artial loss / pilferage" $ 0 pieces $ *end a preliminary claim to Martinair Cargo Claims within $+ days from ,artial loss is defined as one or more pieces of the total shipment ,ilferage is defined as the loss of one or more items out of one or more /efinition" loss is defined as all pieces (mentioned on the Master Air #aybill) reported missing
(mentioned on the Master Air #aybill) are reported missing
the date of delivery (both partial loss and pilferage are considered as damage). $ Ma!e sure, that partial loss and/or pilferage is noted on the warehouse
release form/delivery receipt of the warehouse or on the &ruc!ing document in case of direct deliveries. n case of pilferage, please also establish the weight discrepancy. (ow to file a priced claim
/(
#henever a priced claim is filed, the necessary information must be gathered. #e strongly re3uest you to enclose the relevant documentation and information as mentioned below, in the 4nglish language" $ 5endor6s / shipper6s invoice covering the complete shipment. ,lease e)plicitly indicate the items / pieces claimed for. ,lease note that Martinair Cargo cannot offer full compensation based on the commercial / sales invoice as a refund for loss of profit is not part of our contractual liability. 0 ,ac!ing list. ,lease indicate the items / pieces claimed for Cession of 7ights, if re3uired, from the party (shipper / consignee as mentioned of the Master Air #aybill) entitled to claim, which states that your company is authori8ed to act on their behalf. 1 + Copy of the Martinair Master Air #aybill (and if possible a copy of the relevant (ouse Air #aybill). 9 A specification of the amount claimed for (by means of a shipper6s invoice, an independent survey report, a bill of sale or a bill of repair). $ 0 1 Copy of the delivery receipt. (digital) ,ictures, if available. :our ban!ing details, including swift code.
n case your claim concerns damage / depreciation, please enable us to verify the e)tent / direct conse3uences of the irregularity by also enclosing" $ ndependent and ob'ective survey report, if issued. n case the amount of the damage / depreciation is e)pected to be below the costs involved in employing a surveyor, a survey report obviously is not re3uired. ,lease note that the
//
decision whether or not to involve a surveyor is entirely yours. &he presence of an ob'ective survey report, however, will never reduce the strength of your case. 0 1 + 9 ; %ill (s) of repair (if applicable). %ill (s) of sale, in case the shipment was still fit for sale. /estruction report, in case the shipment was no longer fit for sale.
<nly upon receipt of the information as re3uested above, your claim can be ta!en into consideration. f any of these documents are not available, please e)plicitly state so. ,lease be informed that an ade3uate and sufficient provision of all relevant documents enables a swift and efficient claim handling procedure. 5 Claims handling information $ Claims will be handled in accordance with the applicable Conventions
and /or =eneral Conditions and / or Conditions of Contract. $ An airline can only be held responsible for proven irregularities which can
be held against the carrier and which occurred while being under its custody. &his means the period from acceptance of the shipment at the airport of departure until delivery at the airport of destination. $ A preliminary notice of claim must be made in writing by separate notice.
n case of damage (also including partial loss and pilferage) a (preliminary) notice of claim must be filed within $+ days from the date of receipt of the cargo.
/6
n case of loss (all pieces reported missing) a (preliminary) notice of claim must be filed within $02 days from the date of issue of the Mawb. $ &he ma)imum liability of Martinair Cargo is limited. #e refer to the Conditions (available on the website of Martinair Cargo"
relevant provisions of the #arsaw / Montreal Convention, as well as to our =eneral www.martinaircargo.com) and our Conditions of Contract. As a conse3uence hereof, we politely advise you to file a claim with your (client6s) underwriters in first instance, in case your shipment is covered by an insurance policy. $ >or a number of irregularities Martinair Cargo is protected by an
e)clusion of all liability. >or e)ample" the damage as claimed for is of an indirect / conse3uential nature ( e.g. loss of profits, additional ta)es incurred, fines etc.), Act of =od , >orce Ma'eure situation, authority regulations. 7eference is made to our =eneral Conditions. Martinair also will decline all liability for goods not properly pac!ed for air transportation. Martinair Cargo does not accept liability for perishable cargo delivered into our custody at a temperature e)ceeding the temperature limits mentioned on the warehouse receipt / acceptance slip or e)ceeding the temperature limits mentioned in the A&A, ,erishable Cargo Manual?. Also liability is not accepted by Martinair Cargo for damages which are a result of inherent defect, nature or vice of the cargo whilst shipment has not suffered a significant delay. $ &he right to claim shall be e)tinguished if any action is not brought within
two years, rec!oned from the date of arrival at the destination, or from the date
/!
on which the aircraft ought to have arrived, or from the date on which the carriage was stopped. $ #henever our liability for a claim e)ceeds our policy deductible, Martinair
Cargo will be forced to hand over the file to the liability claims ad'usters appointed by our insurers. &he claim will then be dealt with directly by these claims ad'usters and the claimants will be contacted accordingly. $ n case we accept liability we re3uest the claimant to sign and to stamp a
>inal 7elease >orm before being able to settle, hence relieving Martinair Cargo from any further future liability. After receipt of the duly signed and stamped >inal 7elease >orm and if necessary the Cession of 7ights, settlement will be effected. <ur financial department will transfer the amount to your ban! account, for which we of course need your ban!ing details, including swift code.? $
/C
E-CESS LIABILITY
$-cess liability is all about the refueling and the defueling of the aircraft. $-cess liability is also #nown as THIRD PARTY WAR RISKS.
3efueling done by one aircraft to another in air
3efueling done on ground
AEROSPACE MANUFACTURERS PRODUCTS AND GROUNDING LIABILITY MANUFACTURERS PRODUCTS LIABILITIES

&his type of insurance is essential for the manufacturer of aircrafts, its components and related eEuipment. In addition, it is also necessary for those engaged in selling airplanes, its parts or fuel, and for individuals who repair andBor maintain the aircrafts. &here are different laws, federal regulations and considerations for commercial airliners versus small planes. 8eneral aviation refers to aircraft such as small planes that seat less than (= passengers and were not engaged at the time of the flight in scheduled passenger-carrying operations. It includes helicopters, as well. )nowledgeable bro#ers can assist in the process of identifying what type of coverage is necessary on a case by case basis.
/7
ings of the plane 'ade of Alu'inu'
4ifeline of an aircraft+ 5ig 165 storey si7e engines
C%. +"'
&his policy protects parties from claims arising from in9ury or damage caused by defects in the products sold or manufactured or from improperly completed operations. 5anufacturers, distributors and sellers can be open to liability even if it is proven that the product was used improperly. Insurance
/'
coverage will cover their legal fees needed for defense against claims and class action suits
&hree times big tyres of a plane
S&"&,$&,/$
&hough air traffic is considered to be a safe means of transportation, accidents do occur. +ome of the more common causes of many of these incidents are faulty eEuipment and structural or design problems. Aviation products can cause catastrophic accidents as the result of relatively minor failures.
6=
GROUNDING LIABILITIES
&his may include liabilities as follows
PREMISES0LIABILITY
&his basic part of the policy will protect the liability of the operation for the employees while performing their duties. &his would be the fueling operation, and any part of the business associated with the office and ramp areas. &he facility will add to this policy additional parts to cover the specific needs of each operation.
8round staff at its "or$
6%
HANGARKEEPERS
&he larger operations, you #now, li#e a 3ell service center with 7 to %= beautiful ships in various stages of maintenance with full pilot training facilities for instance, is almost always going to have e-ceptional policies covering their business operations that include what you do. &heir policy will cover any person acting on behalf of the operation in the carrying out of their duties. &his policy will protect you if you should do something unintentional that causes damage. An e-ample might be in the process of moving a helo in or out of the hangar with a power tug. If you are watching one side and start the turn too soon and catch the tail boom or rotor on the hangar door or another helicopter sitting ne-t to the one you are moving, the damage you cause will be covered by the coverage.2ow letOs say you wor# for a maintenance only shop with 9ust %or ( ships being wor#ed on at any one time. In these difficult economic times, it is not unheard of for some operations to trim e-penses and not purchase the Aangar#eepers option of the policy. If you are unsure, wor# up the courage to as# your boss if you are covered under this part of the policy. +eeing a copy of the declarations page with the policy effective dates will help reassure you and will operations Aangar#eepers also tell you if the coverage has been purchased.
0eople "or$ing as hangar $eepers
6(
6/
TRAINING
A pilot getting trained in a coc#pit
It is the hope of the insurance underwriters that if you are as#ed to do something new that you will have received training ahead of time. If you usually move a 1obinson 1(( or +chweizer /== and are now as#ed to move a multimillion dollar +i#ors#y +-C%, please be sure you as# for training or assistance. &his same training will apply to any part of the operation you perform. $ven something that seems as simple as fueling or de-fueling must be part of your training before you perform it by yourself. ,nderwriters would prefer the operation participate in 2A&AOs +afety
66
IN0FLIGHT0HANGARKEEPERS
&his coverage is important if you are operating the helicopter in flight. It is not uncommon for an operation to do a test flight after maintenance has been performed or if avionics have been installed or changed. +ometimes a problem reported by the owner can only be replicated while in flight. If you are the one who flies it, be sure you meet all of the pilot reEuirements of both the operatorsO policy and the helicopter ownersO policy. In almost every case, an owner will have an aircraft policy that has as part of their pilot warranty a paragraph that states what Eualifications a pilot needs to meet before he can fly as part of a maintenance flight. &here are some operators who believe that the ownersO policy will cover any damage loss aircraft flying to that the while under results from a
this provision. 1emember that the owner has a

9ligible pilots
policy protect
to themH
not you.
6!
AIRPORTS OWNERS AND OPERATIONS LIABILITY

AIRPORT OWNERS LIABILITY
&he wor# done by airport employees is considered to involve the greatest level of professional responsibility. $ven smallest errors by airport personnel can result in enormous casualties and material losses. &herefore it is important for airport owners to insure not only their property but also third-party liability. Insurance ob9ects@
&he InsuredOs liability as an airport owners andBor airport structures that may include@
o o o o o
- airport terminal, airfield and other infrastructureH - fuelling stationH - air traffic control center.
Insurance ris#s@

- liability for causing material damage to third partiesH
- liability for causing damage to life and health of third parties.
6C
3eautifully built 1iyadh Airport
I($1+"(/ 2 +,%*3

Period specified in the insurance policy P normally one year.
&he cost of insurance is influenced by@
- number of ta#eoff and landing operationsH
- types of aircraft based at the airportH

6
- passenger and freight flow volumesH
- structures comprising the airportH
- security measuresH
- wor#ing conditions of air traffic control center.
E4/!1$,%($3
+tandard@ military ris#sH ris#s related to nuclear e-plosion effects and radiation hazard.
S2 /,5,/@
o o o
liability to the InsuredOs personnelH
- liability for property owned or temporarily possessed by the InsuredH
o o
- liability for in9uries to persons and property resulting unless such activities have been agreed on with the Insurer.
Also to mention that airport ownerOs liability also includes operations liabilties
67
PRODUCT LIABILITY
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who ma#e products available to the public are held responsible for the in9uries those products cause.
T6 %+, $ %5 !,"7,!,&#
In the ,nited +tates, the claims most commonly associated with product liability are negligence, strict liability, breach of warranty, and various consumer protection claims. &he ma9ority of product liability laws are determined at the state level and vary widely from state to state. $ach type of product liability claim reEuires different elements to be proven to present a successful claim.
Plane crash due to manufactures and other members related with the airlines
6'
T#2 $ %5 !,"7,!,&#
+ection ( of the 7estatement (&hird) of &orts" ,roducts .iability distinguishes between three ma9or types of product liability claims@

manufacturing defect, design defect, a failure to warn :also #nown as mar#eting defects;.
5anufacturing defects are those that occur in the manufacturing process and usually involve poor-Euality materials or shoddy wor#manship. *esign defects occur where the product design is inherently dangerous or useless :and hence defective; no matter how carefully manufactured. Failure-to-warn defects arise in products that carry inherent nonobvious dangers which could be mitigated through adeEuate warnings to the user, and these dangers are present regardless of how well the product is manufactured and designed for its intended purpose.
!=
FUTURE OF AVIATION INSURANCE

*uring the past century, man has realized his dream to fly. &he aircraft has been developed and partially perfected. &he aviation industry, as it is #nown today, has grown into a set of definable sub-industries based upon usage. 5odernday aircraft range from military to commercial airlines to the most diverse group, general aviation. As with any technology-based industry, aviation continues to grow and develop. 2ew uses for aircraft are identified, better aircraft and avionics are created, and problems are recognized and solved. Although aviation has come a long way in the last %== years, it is still a developing industry. With growth and development come problems that must be solved before an industry can graduate to the ne-t level. In the ,nited +tates, aviation is now being confronted with a series of problems that may ta#e as long to solve as the act of flight itself. As aviation enters the new millennium, it is these problems with which the aviation insurance industry must deal. +ome are simply growing pains. 4thers are outside influences for which no simple solution may e-ist.
LEGAL CONCERNS
In many cases, changes in other areas of our society have a great influence over aviation. &his is the case with our court system. &he trend toward unreasonable verdicts and ridiculous awards has forced many aircraft owners to create shell corporations to ?front? as the registered owner of their aircraft. 4wners today are uncertain as to how much liability insurance is adeEuate
!%
protection, a situation made far worse by the growing reluctance of insurance underwriters to offer higher limits of liability protection at any price. &he underwriters e-plain that it is impossible for any aviation insurance company to predict an adeEuate liability premium rating structure when the court decisions are so volatile and erratic. All aviation insurance companies are heavily reinsured by companies in .ondon and other foreign mar#ets, and those foreign insurers usually charge passenger liability premiums for aircraft operated in the ,nited +tates that are three to five times as much as those paid by non-,.+. operators. And so it goes for the owner of general aviation and commercial aviation aircraft in the ,nited +tates. Aircraft owners seem to be trapped between inadeEuate coverage limits, high-priced liability insurance premiums, and the perils of the ,.+. court system.
CAN SMALL AVAITION BUSINESSES SURVIVE 8

In the future, some sectors of the aviation community may simply cease to e-ist as a result of the threat of financial devastation due to lawsuit. We>ve had a glimpse of this already when the escalating cost of products liability insurance practically stopped the production of light aircraft in the mid-%'7=s. It was only after a change in legislation limiting the time an aircraft manufacturer could be held responsible for products liability that our industry resumed production of new light aircraft. In the future, such sectors of general aviation as the small piston repair shop and the small flight training school may not be able to afford the increasing insurance premiums and in some cases may not be able to buy adeEuate insurance at any price. &his may spell the end for many in these businesses. As of February
!(
(=== at least three aviation insurance companies have ceased writing small ?Instruction and 1ental? ris#s while others have increased their premiums for this class. &he future may see the small maintenance facility replaced with a newtechnology aircraft reEuiring far less maintenance. &he same style of maintenance used by the military and airlines -- the remove-and-replace concept -- may become commonplace throughout general aviation as well. 5aintenance problems may be identified by computer and repaired only by the manufacturer at factory service centers, a practice that is already common in today>s biz9et fleet. ?Plug and fly? replacement parts #eyed to a computer analysis may decrease cost with little or no downtime. All this, of course, is little consolation to owners of e-isting, oldertechnology, maintenance-intensive aircraft. &hey>re not getting any younger ... and neither are we.
AGNG FLEET9 AGING PILOTS

While aviation is not e-actly a mature industry, it is aging. 5aybe what we>re seeing today is 9ust the end of a plateau in the overall development of aviation. &he average age of both our pilot population and our fleet :both commercial and general aviation; is increasing. 5any commercial and airline pilots today received their initial training in the military. &he World War II pilots are now in their =s and 7=s, the )orean War pilots are in their late C=s, and the Gietnam pilots are in their !=s and C=s. 4ne of the most common conversations we have with our clients and friends concerns how they can e-tend their insurable years as a pilot. Aviation is a great hobby for our retirement years.
!/
Aircraft hull and liability insurance for the senior pilot has become such a concern that our insurance agency has developed a special tas# force to help deal with this problem. .oo#ing into the future, as the baby boomers age, our average pilot populations continue to age. As with automobile drivers, we have found this segment of our industry to be no more li#ely to have an accident than the younger group. In fact, they tend to be more cautious, better trained, and better financed than most underwriters care to admit. 5aybe it is because we are growing older ourselves, but we believe increased awareness at the underwriting level will soon improve insurance company acceptance and serve to e-tend the insurable age of the senior pilot. We can assure you, we are doing everything in our power to influence the underwriting community in that direction. 5eantime, what can be done to infuse new blood in the coc#pitI &he industry is currently suffering from a lac# of trained professional pilots. Without the military-trained pilot to help fill the need for commercial and airline pilots, we must depend solely upon civilian-trained pilots. &his then becomes an economic problem. &here is no longer a generous 8I 3ill to offset the cost of flight training in an age of escalating costs. 5any of our charter and corporate clients complain of sending a young second-in-command to school on their aircraft, only to have the airlines snap them up upon completion. &he trend toward younger and younger pilots in the right seat is disturbing whether at the charter, corporate, or airline level of operation.
!6
SHRINKING FLEET
Primary training costs are increasing for a number of reasons. &he high cost of new replacement training aircraft and inadeEuate and e-pensive insurance render the training sector of aviation vulnerable to lawsuits and financial disaster, and a shortage of Eualified instructors has slowed the flow of new pilots to a tric#le. &he shortage of career <FIs is due in part to the low pay scale at most flight schools, whose owners respond that they>re 9ust barely able to stay in business as it is. &he ma9ority of the general aviation aircraft flying today are %! to (= years old and older. &o replace a simple single-engine <essna % ( today would cost in e-cess of D%6=,===. A new twin-engine 3eech 3aron is in the D%,===,=== range. 4f course, used aircraft are always an option. &he obvious problem is that as new replacement aircraft increase in cost, the price of good used aircraft is forced up as well. &oday, there are no bargains. It is often a struggle to find a used aircraft for sale with no damage history. <ouple the normal attrition of our aging fleet with the high cost of replacement aircraft and it is easy to understand why our overall general aviation numbers are plummeting. Again, a loo# into the future suggests that the ma9ority of primary training will be done in flight simulators and computerized flight-training devices. As demand increases and technology advances, the full-motion simulator should become much more affordable and so realistic the only thing left for the student pilot is the chec#ride. ?+afe and ine-pensive? will become the name of the game.
!!
If you want proof, the military has already adopted this method of training from the combat tan# to aircraft and everything in between, and airline pilots are getting type-rated in new transport 9ets without having ever set foot in the actual aircraft.
TREND TOWARDS TUBINES

&he current trend for corporate-owned-and-operated aircraft seems to be toward turbine-powered aircraft. If new 3arons sell for ?a million buc#s? out of the factory and a good used )ing Air is also in the D% million range, the decision is clear to many which is the preferable aircraft in size, safety and maintenance cost. &he myth that a light piston twin is easier to fly than a turbine-powered aircraft is beginning to be dispelled. 2ow that the underwriting community is imposing virtually the same training reEuirements upon the multi-engine piston pilot as the turbine operator, there is less advantage in buying the piston-powered aircraft. <ouple the ease of operation of the turboprop and 9et aircraft with the comparable cost of acEuisition, and you have an even more compelling argument against the piston engine. &he proof is in the reEuests our agency receives for insurance Euotations. We are seeing increasing momentum toward turbine and 9et aircraft. For years, the corporate flight department has insisted upon the business 9et for comfort and safety. 2ow, with the development of the single-pilot 9ets, there is increased interest from the businessman pilot in <itation +Ps, <itation0ets, and other newgeneration Williams-engine-powered 9ets. In our opinion, this is clearly a loo# into the future. With the ease of operation and safety and the decreasing
!C
acEuisition and operational costs of new-generation turbine aircraft, it is easy to see what the near future holds for the piston-powered aircraft.
TRANING 3 BETTER MORE E-PENSIVE

&here is no argument among most commercial pilots and aviation insurance underwriters that full-motion flight simulators should be a part of every training process. Fou simply cannot practice the emergency procedures in the aircraft that can be demonstrated in a simulator. Although not available for every aircraft at this time, more and more underwriters are reEuiring simulator-based training at least annually. We get the complaint from many of our clients that the cost to attend Flight+afety or +imcom is too high. ,sually, they do not ta#e into account the cost of aircraft operation when comparing this with the traditional inaircraft flight training. &here is good news ahead, however. &here is more competition in the upper-level flight training area. With increased competition will come improved programs and improved affordability. &here will be more flight simulators available for a wider variety of aircraft. In the future, we predict there will be full-motion simulatorbased training at every level ... yes, even for primary training. Fou may see a pilot solo without ever leaving the ground. &his is an insurance underwriter>s dreamN
WHAT DOES THE FUTURE HOLD 8

We have no idea what can or should be done about the ,.+. court system with its irrational verdicts and out-of-control damage awards. From this standpoint, aircraft owners and operators will continue to be plagued by high liability insurance premiums and inadeEuate limits. We can only hope that society
will wa#e up at some point, change its attitude toward litigation, and brea# loose from the hold that attitude has over all of us. 4f course, adversity is the mother of innovation :and invention;. With this in mind, the future is very bright. 2ew methods of training using simulators at all levels will produce more, better-trained pilots. As these techniEues become more available, the costs will continue to decrease. +ome of the new-generation flight simulation software for home P<s is Euite spectacular, and <FIs tell us it offers e-cellent training value :although the FAA does not yet recognize this fact;. 2ew technology and new production methods may eventually bring down the cost of new aircraft ownership, and a younger, more efficient fleet will be born. A modern fleet of this type should be less e-pensive to repair and with the improved repair costs, insurance hull premiums will also decline. In addition, these new-age improvements are producing aircraft that are easier to handle and fly. +afety and comfort seem to be a priority. As this permeates our fleet, accidents will surely decrease, and insurance premiums will decline as well. &he advent of the computer is changing the way we live our lives, and the coc#pit is no e-ception. First seen in our navigational aids with the very affordable 8P+, the computer is revolutionizing the entire loo# and function of our instrument panels. &om <happell, president of our agency, recently attended the open house of one of our clients to view his new .ear 6!. &his new-generation aircraft is truly an awa#ening. +itting in the coc#pit wondering 9ust what all the new pretty and colorful screens and dials were, &om felt as if he was viewing a piece of eEuipment from a future epoch. &he instrumentation, function and completeness of the panel were truly a loo# into the future of general aviation. &he way pilots
!7
are trained in the future will be changing -- not 9ust to cut costs, but because the aircraft of the future are here and are li#e nothing you have ever seen.
INDIAN GOVERNMENT ON AVIATION INSURANCE

I(*,"( A.,"&,%( I($1+"(/ M"+: & O. +., ; 2<<= A("(& P";"+> T6 "1&6%+ ,$ &6 V,/ P+ $,* (& ? H "* @ A.,"&,%( "& A%( G!%7"! I($1+"(/ B+%: +$ P.&. L&*. Insurers on aviation growth path Indian Insurers have come a long way in developing the mar#et capacity for aviation insurance business and as India s growth story continues, Insurers have #ept pace with the growing demand from buyers in India. &oday the Indian mar#et is playing a #ey role in supporting not only buyers in India but also buyers in the sub-continent, including ma9or support to the +AA1< region. As the Indian aviation industry continues to grow, many new buyers have entered the insurance mar#et with reEuirement for different types of products. Apart from traditional airline and aircraft related insurances, Insurers are now covering different verticals of aviation industry ranging from airports to aircraft manufacturers with bigger ris#s appetite. &he year (==7 has seen heightened level of competition amongst both Public and Private +ector Insurance <ompanies in an attempt to retain the current mar#et share and to fulfill an ever increasing desire to participate in the aviation growth story.
!'
:360raful 0atel, :inistry of Ci;il A;iation, %nion 8o;ern'ent of India
C=
&his is more so in the 8eneral Aviation :generally aircraft with less than C% seats; segment where the sum insured limits are within the capacities of many Indian Insurers. 8eneral Aviation buyers in India have en9oyed substantially lower premium payouts in (==7 compared to their world and regional peers, as buyers have bargained hard ta#ing advantage of the soft mar#et conditions and e-cess mar#et Euite a few buyers have switched their insurers. 4n the Airline front, pricing continues to be driven by leading international mar#ets especially in .ondon, as Indian Insurers continue to off load ma9or ris#s to international companies mainly in the $uropean sub continent, with insurance bro#ers playing a very important role in the entire process. 5ar#et Potential For (==7, Aviations direct premium income in India is circa I21 /, != million and this includes buyers from all segments including airlines, general aviation, aerospace, airports, ground handlers, catering companies etc but e-cluding satellite. 4ver !" of the total premium comes from the airline segment with another (/" from 8eneral Aviation. A very small portion of (" is contributed by airport, ground handlers, catering segment etc. In addition, capacity. In the process, 2ational 1einsurer, Q8I< 1e writes substantial international aviation business :mainly by way of inward reinsurance; coming into the country and gradually other insurers are following suit, but with caution. 4ver the last %= years 8I< 1e has emerged as one of the largest aviation reinsurer in the international mar#et and is playing a #ey role in supporting Indian Insurers. <urrently there are over (== buyers of aviation insurances in the country who need aviation products in one form or other. 5any new buyers have entered the mar#et in (==7 and the trend is e-pected to continue in (==' albeit at a slow pace. For the airline sector, customer base and number of aircrafts has increased significantly in the past three years but current economic situation is ta#ing a toll on its future growth.
C%
When one compares the above limits to (-/ years bac# it signifies a 9ump of over (=="-(!=" and ma9ority of the capacity comes from 2ational 1einsurer, 8I< 1e. 2ew capacity has entered Indian mar#et especially during (== , (==7 with Private Insurers buying reinsurance programmes to support their direct underwriting. At the same time e-isting Insurers have e-panded their underwriting limits. It is e-pected that capacity will be more or less stable during (==' and as a result dependence on international mar#et for 8eneral Aviation is li#ely to get reduced, but for large airline ris#s reliance on international mar#et is e-pected to continue.
Three a;iation 'ar$eting giants
C(
C!",)$ S/ ("+,%
$ach Insurer will have its own underwriting e-perience to show and can vary from its peers considerably depending on their participation on the policies that has produced losses. 8eneral Aviation claims in (==7 are e-pected to e-ceed 1s. !== million and (==' has started on a bad note with claims in first five months e-ceeding 1s./!= million. As against this, past %= years average general aviation losses are hovering around 1s.6== million. When we compare these claim figures against the total general aviation premium in India, one may come to a conclusion from the insurers perspective that general aviation is profitable over the last %= years period. &his may not be true for all insurers, especially considering the fact that %= years average loss figure consists of two or three ma9or losses in each year. Insurers participating on these losses would have been hit hard. 5a9ority of the losses in the last %= years are on account of aircraft damages and liability claims forma a very small portion of it. Aowever, by no means does this give any indication into the future considering the catastrophic nature of aviation business.
C/
M%(&+ "! C%(. (&,%(

&he Indian 8overnment ratified L5ontreal <onvention %'''M in 5arch (==' and currently it applies to international travel. &here is nothing on record at this stage to show that the revised liability limits are applicable to domestic sectors. In brief, the <onvention has increased compensation levels for international passengers in the event of death or bodily in9ury and damage and delay to the passenger baggage and cargo. While the compensation for death or bodily in9ury has increased almost times from the e-isting levels of appro-imately ,+* (=,=== to around ,+* %6=,===, the compensation for damage to the chec#ed baggage has increased from appro-imately ,+* (= per #g to around ,+* %,6== per passenger. &he compensation for damage to cargo has increased from ,+* (= per #g appro-imately to ,+* (6 per #g. &he Warsaw +ystem, which is in force in India by way of <arriage by Air Act, %' ( had allowed four choices of 9urisdiction for filing of a claim by the passenger, namely, place of issue of tic#et, principle place of business of the carrier, the place of destination of the passenger and the place of domicile of the carrier.
C6
&hrough the 5ontreal <onvention a fifth 9urisdiction is added which is the place of domicile of the passenger, provided the airline has a presence there. &herefore an Indian would be able to file claim in India even if the 9ourney was underta#en outside India. .iability .imit for domestic passengers in the event of death or bodily in9ury continues to be at the old level of 1s. !=,=== for passengers above %( years of age and 1s./!=,=== for below %( years. As regards damage and delay to the passenger, baggage compensation is 1s.6,=== per passenger for hand baggage and 1s.6!= per #g for registered baggage. +o far, Insurers have responded very positively by covering their customers based on the revised limits for international travel and it remains to be seen whether new limits will be applicable for domestic travel as well and its impact on the liability claims scenario.
C!
A.,"&,%(
L,"7,!,&#
I($1+"(/
L,),&$
,(
I(*,"3
Western $uropean countries including countries in the Far $ast namely Aong )ong, +ingapore have adopted regulations specifying minimum liability insurance limits for aircraft based on the Lma-imum ta#e off weight of the aircraftM and Lpassenger seating capacityM, however India is yet to adopt any such regulations. $ven neighboring countries li#e +ri .an#a and 2epal have minimum liability insurance reEuirements for aircraft and it may not be too long before India adopts such reEuirements. While Airlines and <orporate 0et owners are buying liability limits in line with the international trend, there is no similar trend when it comes to helicopter operators. .i#e Airline policies, liability limits on <orporate 0ets many times are driven by financing Bpurchase agreementsH however helicopter operators tend to buy low limits
CC
AVIATION INSURANCE SERVICE PROVIDERS IN INDIA0 NEW INDIA LIFE ASSURANCE CO. LTD
In India the one company which provides aviation insurance as a service is 2ew India .ife Assurance <o. .&* &his company provides this service as a commercial product to the aviation sector. +tarted in %'6C company professional insurance as Aviation provides aviation advice and Insurance of Air India,
&he logo of &A$ 2$W I2*IA .IF$ A++,1A2<$
solutions to the needs of small aircraft operators as well as scheduled airlines.
&he aviation portfolio encompasses following type of covers.
H1!! A!! R,$: I($1+"(/ P%!,/#
&his policy is suitable for small aircraft operators belonging to flying clubs, companies engaged in agricultural spraying operations, aircrafts especially designed for GGIPs, business e-ecutives and for those engaged in industrial aids. &he policy scope includes all physical loss or damage sustained by the insured aircraft including total loss, disappearance. All losses are paid sub9ect to deductibles.
S2"+ $ A!! R,$: I($1+"(/ P%!,/#

<overs loss or damage to spares, tools, eEuipments and supplies owned by
the insured or the property for which the insured is responsible whilst on ground or in transit by land, sea, air including in own aircraft or whilst on the premises of others for storage only.
H1!!AS2"+ $ W"+ R,$: I($1+"(/
Indemnity is provided to the aircraft as well as spares caused by war, invasion, acts of foreign enemies, hostilities, civil war, rebellion, revolution, resurrection, martial law, stri#es, riots, civil commotion, malicious acts, sabotage.
H1!! D *1/&,7! I($1+"(/
Airlines at times have to bear a proportion of loss due to application of a deductible under All 1is# Policy, which may impose considerable financial difficulty on the insured. &herefore the operators insure part of their deductibles under this #ind of insurance.
C7
A.,"&,%( P +$%("! A//,* (& B/+ ; ) )7 +C I($1+"(/
&his cover is designed to cover insured person against in9ury, disablement or death arising as result of an accident that is generally granted on annual basis. &he cover operates while mounting or dismounting from and whilst traveling an aircraft while the aircraft is being used within the geographical scope as per its permitted usage. &his cover can also be on (6 hours basis. &he capital sum insured varies according to the status of the insured or earning capacity and fi-ed by the insurers.
L%$$ %5 L,/ ($ I($1+"(/
4perating crews of the aircraft are reEuired to have valid license. .icense is liable to be suspended either temporarily or permanently on medical grounds. <onseEuential financial loss is covered by the loss of license policy. <over provided is in respect of incapacity causing permanent total disablement or temporary total disablement due to bodily in9ury or illness. 3esides the aforesaid general aviation policies 2ew India Assurance <ompany also provides various other tailor-made insurance as per specific reEuirements of the insured.
C!",)$
In case of claims following are illustrative documents that are generally called for from the insured.

*ocuments in connection with aircraft details *ocuments in connection with flight details
C'
*ocuments in connection with the accident <ertificate of airworthinessBregistration <rew details 5aintenance R engineering information 4perational manual passenger documentation in case of claims
FORMS REGARDING AVIATION INSURANCE CLAIMS

&here are basically three types of forms provided by the company regarding aviation insurance. &hey are as follows@
1. P +$%("! A//,* (& I($1+"(/ F%+)$ 2. A,+/+"5&A A.,"&,%( L,"7,!,&# I($1+"(/ F%+)$ 3. L%$$ %5 F!#,(' L,/ ($ I($1+"(/ F%+)$
All the forms are different from each other and also the columns to be filled. In other words they differ from each other. &hey loo# as follows@
&he 2ew India Assurance <ompany .imited

1egistered R Aead 4ffice@ 2ew India Assurance, 7 , 5.8. 1oad, Fort, 5umbai - 6== ==%.
*eclaration Form for Aviation Personal Accident Policy For <rew 5embers :&o be completed by each person to be insured and to form part of the Aviation Personal Accident Proposal Form; %. (. /. 6. 2ame Age till last birthday What is the e-act nature of your duties If you are pilot or navigator or flight engineer state a. 2umber and type of license b. *ate of license c. 3y whom granted d. *ate of e-piry of license e. &ypeBs of aircraft in respect of which the license is granted f. *ate of last medical e-amination for the license Aas your license been suspended or withdrawn or have you ever been charged with any offence under the air navigation regulationsI If so, give details @ @ @ @
@ @ @ @ @ @
!.
@ @ Aircraft @ @ &otal 2o. of Aours Flown
C. 8ive details of your flying e-perience . Aave you been involved in any aviation accident during the last ! yearsI If so, give details of each accident
7.
Aave you made any claim during the last ! years under an Aviation Personal Accident Policy If so, give details of each claim Aas any insurance company at any time, a. *eclined your proposal for aviation P.A. Policy or .ife Insurance b. 1eEuired an increased premium or imposed special conditionsI
@ @
'.
@ @
SAFE SKIES WITH AVIATION INSURANCE c. <ancelled or refused to renew your insuranceI If answer to a, b or c is LyesM, Please give details
@ @
%=. What are the types of aircraft you contemplate flyingI
I, the undersigned, hereby declare that all the above particulars are true and complete in every respect, that I am in good health and free from physical infirmity or defect of any #ind, that I am and always have been of temperate habits, and that I have not withheld or suppressed any information regarding the proposal.
Place@ *ate@ :+ignature of the person to be insured;
Agency
Policy 2o.
Proposal Form for Aviation Personal Accident Policy

:For pilots, navigators, aircraft flight engineers, aircraft flight technicians R other crew members; %. (. /. 6. ProposerOs 2ame in full ProposerOs Address ProposerOs business or occupation @ Persons to be insured :A declaration form in the prescribed format should be completed by each person to be insured and attached to this proposal; +.. 2o. 2ame Age last 3irthday :In years; *esignationB <apital 4ccupation +um Insured :1s.; &able of 3enefits @ @
!. Period of Insurance From &o C. 2ature of flying to be done . 8eographical limits to which flying will be confined 7.
@ @ @ @
Aas any of the persons to be insured, to your #nowledge, any physical defect or infirmity of any #indI @ Aas any insurance company at any time, a. *eclined your proposalI b. 1eEuired an increased premium or imposed special conditionsI @ c. <ancelled or refused to renew your insuranceI @
'.
%=. Aas any aircraft owned or operated by you ever met with an accident involving in9uries to passengers
SAFE SKIES WITH AVIATION INSURANCE andBor crew membersI %%. Is the insurance to apply on (6 hours basis, or to apply to flying ris#s onlyI @
%(. &he proposer may, at his option complete this column. If the proposer is also the insured person, this column should be completed. I, SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSdo hereby assigns the monies payable by &he 2ew India Assurance <ompany .imited in the event of insured personOs death to SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS, SSSSSSSSSSSSSSSSSSS:relationship to the insured; and I declare that hisBher receipt shall be sufficient discharge to the company.
:+ignature of the Insured; Witness +ignature of the witness@ 2ame of the witness Address of the witness @ @
IBWe hereby declare that the above statements are true and complete. IBWe agree that this proposal and declaration form :signed by the personBpersons; to be insured; shall be the basis of the contract between meBus and the insurance company. IBWe further agree to accept a policy sub9ect to the conditions stipulated therein by the insurance company.
Place@ *ate@ :+ignature of the Proposer;

Agency
Policy 2o.
P14P4+A. F415 P41 AI1<1AF& A2*B41 AGIA&I42 .IA3I.I&I$+ I2+,1A2<$

:*$FI2I&$ A2+W$1+ +A4,.* 3$ 8IG$2 F41 A.. T,$+&I42+. 24 <4.,52 +A4,.* 3$ .$F& 3.A2) 41 <45P.$&$* WI&A A >-> :*A+A;;
%. (.
Proposer>s name in full@ Proposer>s address@
/. Proposer>s business@ or occupation 6. *etails of aircraft to be insured

Air Frame 5a#e, &ype R +eries 2o. Fear of construction Passenger +eating <apacity .icensed *eclared for the purpose of this insurance 1egistrationB Identification 5ar#s 2umber R *ate of issue of last renewal of < of A $ngines 2umber and &ype 5a-imum All ,p weight of aircraft in #gs
!.
Galue of the aircraft

Price Paid 1s. Present value of the aircraft with standard instruments and eEuipment :1s.; $-tra eEuipment and accessories fitted to or carried in the aircraft *etails Galue &otal value of the aircraft for the purchase of insurancee
Fear of purchase
C. Purpose for which the aircraft will be used . 8eographical limits for which mover is reEuired 7. Will aircraft be flown at night I '. 3y whom will the maintenance and running repairs be carried out %=. :a; Where will the aircraft usually be #ept I :b; Is the aircraft normally #ept in a hanger I :c; If so, state type of construction of hanger %%. Will the aircraft be ta-ied by persons other than licensed pilots or competent licensed engineersI
%(. Aave you entered into any agreement with any party whereby liability is assumed or denied in respect of the operations of the aircraft I If so, give details %/. Aas any insurance company at any time, :a; *eclined your insurance proposalI :b; <ancelled or refused to renew your policyI :c; 1eEuired an increased premium or imposed any special conditionI If answer to :a; or :b; or :c; is L Fes? Please give details, %6. Please state details of all accidentsBlosses during last ! years.
3rief details of accident <ost of estimate of repairs to Aircraft :1s.; Amount of liability claims incurred :1s.; &hird Party Passenger *ate of Accident
%!.
8ive details of pilot who will fly the aircraft.

Pilot Pilot Pilot
2ame Age &ypes of aircraft flown Flying e-perience :in hours; &otal *ay@ &otal 2ight@ *uring last / months@ 4n type R ma#e of aircraft proposed for insurance@ <urrent .icense *ate of e-piry <lassification
*etails of accidents, if any, during last three years
%C.
*etails of insurance reEuired@ :A; +$<&I42 % - .4++ 41 *A5A8$ &4 &A$ AI1<1AF& Whether cover reEuired@ If so, ris#s to be covered@ :+tate ?Flight?, &a-ying? ?8round? ?5oored? as the case may be; :3; +$<&I42 II - &AI1* PA1&F .IA3I.I&F Whether cover reEuired@ If so, .imit of Indemnity :any one accident;@ :<; +$<&I42 III PA++$28$1 .IA3I.I&F Whether cover reEuired@ .imit of liability per passenger@ Whether cover reEuired on >.egal .iability? basis or ?Admitted .iabilityM basis@ 3aggage .iability Whether cover reEuired@ .imit of Indemnity per passenger@
:voluntary settlement;
% . :a; *o you reEuire Aull War 1is#s coverI :b; If full Aull War 1is#s cover is not reEuired, do you reEuire limited coverage for *amageB+tri#es, 1iots R <ivil <ommotionB +abotageBAi-9ac#ing I %7. P$1I4* 4F I2+,1A2<$ FromSSSSSSSSSSSSSSSSSSS &oSSSSSSSSSSSSSSS
5alicious
*$<.A1A&I42@ IBWe warrant that the abovementioned aircraft isBare myBour property, and the statements and particulars given are true and that no material information has been withheld or suppressed, and IBWe agree that this proposal and declaration shall be the basis of the contract between meBus and the Insurance <ompany and to accept a policy sub9ect to terms, conditions and e-clusions prescribed therein.
+ignature of the Proposer

,roposal >orm for .oss of >lying .icense nsurance

Proposal 2o@ Policy 2o@
A. +urname@ <hristian 2ames@ Address@
*ate of 3irth@
4ccupation@
Flight <ategory@ <aptainBPilot@ FirstB+econd 4ffer@ 2avigation 4fficer@ 1adio 4fficer@ Flight $ngineerBInstructorB 8lider Instructor :delete whichever is inappropriate;
What is your present total remuneration from your above stated occupationI 3. 2ame and address of present $mployer@
If freelance state@ %. &ype of $mployment anticipate and all remunerated occupation@
'
(.
&ype of flying during past ( years e.g. Air .ine, <rep-spraying, Aelicopter etc
<. &ype and number of license@ 3y whom grantedI *ate of Issue@ *ate of last renewal@
:&his must not be confused with the date of last medical e-amination of such renewal. &he date of actual renewal must be given;
*. +tate whether or not you already have a .oss of .icense Insurance Policy, :+tate LFesM or L2oM. If Fes, state@ a. With whomI b. For what amountI c. *ate of e-piry of the Insurance@ d. Particulars of Insurance reEuired@ $. PA1&I<,A.1+ 4F I2+,1A2<$ 1$T,I1$* a; For What +umI b; For What PeriodI From
&o
24&$@ &his insurance may be invalidated by the e-istence of another .oss of .icense insurance unless prior agreement is obtains from the ?2$W I2*IA A++,1A2<$ <4. .&*.? SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS I hereby declare that to the best of my #nowledge I have not sustained any personal in9ury whatsoever and I am not at the present time and have not been at any time afflicted any illness whatsoever :including temporary or otherwise of my physical aural or eye condition; e-cept as detailed below@ I further declare that the certificate of validity forming part of my above mentioned .icense has never been invalidated for any period, e-cept as stated below@ I warrant that the above statements and particulars are true and thereby agree that this *eclaration shall be held to be promissory and shall form the basis of the contract between me and the 2ew India Assurance co. .td. and I am willing to accept a policy sub9ect to the terms, e-ceptions and condition prescribed by the <ompany therein, and to pay the premium thereon. *A&$SSSSSSS(= P14P4+$1>+ +I82A&,1$@ SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
WA12I28 &4 A.. P14P4+$1+

In your own interest great care must be ta#en in completing the declaration set out above. 2on disclosure or incomplete disclosure of any fact which is or may be material to the 2ew India Assurance <o. .td. in deciding whether to accept your proposal for insurance may invalid to the policy and cause you to be deprived of all benefits thereunder. &A$ 2$W I2*IA A++,12A<$ <45PA2F .I5I&$* reserves the right to impose special conditions or refuse to accept a proposal form. SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
7=
+PA<$ F41 5$*I<A. AI+&41F

:IF 2I., +tate 2I.; :+tate all illnesses of whatsoever nature and all accidents involving in9ury and give result of last cardiograph e-amination with date in all cases; *A&$@ SSSSSSSSSS(= P14P4+$1>+ +I82A&,1$@
+PA<$ F41 *$&AI.+ *,1I28 WAI<A &A$ <$1&IFI<A&$ 4F GA.I*I&F F415I28 PA1& 4F &A$ P14P4+$1+> .I<$2<$ AA+ 3$$2 I2GA.I*A&$* :+tate date and cause@ If 2I. state 2I..;
*A&$@ SSSSSSS(=
P14P4+$1>+ +I82A&,1$@
7%

Project On Aviavtion Insurance

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project On Aviavtion Insurance

Uploaded by

Copyright:

Available Formats

SAFE SKIES WITH AVIATION INSURANCE

INTRODUCTION OF INDIAN AVIATION SECTOR

A proud Air India Flying

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

HISTORY OF AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

RISK COVERED IN AVIATION INSURANCE

NORMAL RISKS LIABILITIES

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

Concorde plane disaster in France, 25 July 2000

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

HULL WAR RISKS

SAFE SKIES WITH AVIATION INSURANCE

The brutal second plane crash in

orld Trade Center, !e" #or$, %nited &tates of A'eica, 11 &epte'ber,2001

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SPARES ALL RISKS

SAFE SKIES WITH AVIATION INSURANCE

A flight coc$pit "ith its spare parts

An engine "ith its spare parts "or$ing inside

SAFE SKIES WITH AVIATION INSURANCE

HULL TOTAL LOSS ONLY COVER

The Aerocor (Aerolineas Cordeillra) *C+, used in -0.s and /0.s

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

AIRCRAFT 3RD PARTY LIABILITY

PASSENGE R BAGGAGE CARGO AND MAIL

SAFE SKIES WITH AVIATION INSURANCE

aircraft operators in the event a passenger is in9ured, #illed or disabled an

parts--general liability :e-cluding passengers;, and passenger liability.

SAFE SKIES WITH AVIATION INSURANCE

THIRD PARTY LIABILITY

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

0assengers hit by baggage delay

SAFE SKIES WITH AVIATION INSURANCE

in mind that you will be reimbursed for the

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

!. C"+'% "(* M",! D")"'

Consign'ent da'aged "hile cargo or 'ail fro' one place to another

SAFE SKIES WITH AVIATION INSURANCE

from the date of delivery at the final destination.

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

(mentioned on the Master Air #aybill) are reported missing

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

SAFE SKIES WITH AVIATION INSURANCE

3efueling done by one aircraft to another in air