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Aviation Insurance

Aviation Insurance

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Published by Srishti Chauhan

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Published by: Srishti Chauhan on Nov 15, 2010
Copyright:Attribution Non-commercial


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as well as terminology. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate aviation terminology. limits and clauses specific to aviation insurance. .WHAT IS AVIATION INSURANCE? y Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation.

conditions and limitations of liability for carriage by air. By 1933 realising t at t ere s ould be a specialist industry sector t e International Union of Marine Insurance (IUMI) set up an aviation committee. and by 1934 eight European aviation insurance companies and pools were formally established and the International Union of Aviation Insurers (IUAI) was born ¢ ¤ ¡ £ ¢ y ¡       .History y Aviati Ins rance as first intr ce in t e early years f t e 20t Cent ry. T e first aviati n ins rance licy as ritten by Ll y 's f L ndon in 1911. T e company stopped riting aviation policies in 1912 after bad eat er and t e res lting cras es at an air meet ca sed losses on many of t ose first policies. T e convention was an agreement to establis terms. t is was t e first recognition of t e airline industry as we know it today. It is believed t at t e first aviation policIes ere nder ritten by t e marine ins rance nder riting community y y In 1929 t e Warsa convention was signed.

The market is made up of the traditional loyd's of ondon syndicates and numerous other traditional insurance markets.y The ondon insurance market is still the largest single centre for aviation insurance. this is dependent on the aviation activity within each country. the US has a large percentage of the world's general aviation fleet and has a large esta lished market. The catastrophic nature of aviation insurance can e measured in the num er of losses that have cost insurers hundreds of millions of dollars (Aviation accidents and incidents) y Most airlines arrange "fleet policies" to cover all aircraft they own or operate . y No single insurer has the resources to retain a risk the size of a major airline. y Throughout the rest of the world there are national markets esta lished in various countries. or even a su stantial proportion of such a risk.

After an accident an insurance company will compensate victims for their losses. crops. airport facilities and other aircraft struck in a collision. 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. such as houses.Types of insurance Public liability insurance y This coverage. . such as $1. . . It does not provide coverage for damage to the insured aircraft itself or coverage for passengers injured on the insured aircraft. Pu lic lia ility insurance is mandatory in most countries and is usually purchased in specified total amounts per incident. cars. often referred to as third party liability covers aircraft owners for damage that their aircraft does to third party property. or $5.

TYPES OF INSURANCE y Passenger liability insurance y Passenger lia ility protects passengers riding in the accident aircraft who are injured or killed. y Combined Single Limit (CSL) y CSL coverage com ines pu lic lia ility and passenger lia ility coverage into a single coverage with a single overall limit per accident. ut little damage is done to third party property on the ground . This type of coverage provides more flexi ility in paying claims for lia ility. especially if passengers are injured. with a specified limit for each passenger seat. overage is often sold on a "per-seat" asis. In many countries this coverage is mandatory only for commercial or large aircraft.

The amount of coverage may e a lue ook value or an agreed value that was set when the policy was purchased. . Most hull insurance includes a deducti le to discourage small or nuisance claims. vandalism. This would provide protection for the aircraft for such events as fire. mudslides. flood. theft. wind or hailstorms.[2] y The use of the insurance term "hull" to refer to the insured aircraft elies the origins of aviation insurance in marine insurance.Ground risk hull insurance not in motion y This provides coverage for the insured aircraft against damage when it is on the ground and not in motion. animal damage. hangar collapse or for uninsured vehicles or aircraft striking the aircraft.

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 . ut not while taking off or landing. Normally coverage ceases at the start of the take-off roll and is in force only once the aircraft has completed its su sequent landing. ut provides coverage while the aircraft is taxiing.Ground risk hull insurance in motion (taxiing) y This coverage is similar to ground risk hull insurance not in motion.

Liability Insurance Lia ility is asically categorized in two aspects In regard of passengers. y y y y y y .the lia ility for any sort of property damage or to the people outside the aircraft The exceptions of Lia ility insurance are: Any kind of loss incurred y the own property of the insured. War and allied risks associated with it. Noise and pollution unless resulted from crash. aggage and cargoes carried on the aircraft. Aircraft Third Party Lia ility . fire or any kind of explosions registered inside the air plane.

fire or any kind of explosions registered inside the air plane. . y War and allied risks associated with it. y Noise and pollution unless resulted from crash.The exceptions of Liability insurance are: y Any kind of loss incurred y the own property of the insured.

including while parked or stored. Naturally it is more expensive than non-in-motion coverage since most aircraft are damaged while in motion .In-flight insurance In-flight coverage protects an insured aircraft against damage during all phases of flight and ground operation.

dust. confiscations. y Ingestion damage . ice.Exceptions to such risks are y Wear and tear of the aviation craft are not to e included in the aviation insurance. . y Mechanical reakdown are usually compensated y this type of insurance. strikes. is also excluded. distur ances. War here means any kind if civil war. sand. hi. riots.jacking or any kind of political or terrorist attacks. y The hull "All Risks" policy will pertain to the exclusion of war damages.caused y stones. grit.

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