Aviation Insurance – Insurance Law and Practice Important Questions
Question 1.
What are the benefits of Aviation Insurance?
Answer:
Benefits of Aviation insurance Policy
In this age when all of us are hard-pressed for time and are required to travel (for business or for leisure) taking a flight has become an Indisipensnble part of our lives. Though flying corners with a huge amount of lite risks is unavoidable. Be turbulent weather, terrorist activities leading to hijacks, mysterious disappearance of flights, auto/technical failure, or a plane crash; taking a flight is never devoid of these life-threatening dangers. As they say. better sale than sorry; a comprehensive aviation insurance policy covers you against the aforernentior dangers
- In-flight insurance provides coverage against damages that can happen to the aircraft while it is mid-air (in motion). Though this is expensive, it Is worth it as most accidents happen when a plane is mid-air.
- You are protected from a series of natural weather turbulences and also man-made calamities.
- You are duly compensated for any damages sustained which can happen after you have boarded a flight.
Question 2.
What are the documents required for submission of claim under Aviation Insurance
Answer:
Aviation Insurance Policy Claim Process
The claim process for aviation insurance is quick and hassle-free. You need to provide the following valid documents –
- Aircraft details document
- Flight details document
- Details of the crew members
- Documented proof of the accident
- Information on aircraft’s maintenance and engineering
- Documents of operational manual passenger
Aviation law is the branch of law that concerns flight, air travel, and associated legal and business concerns. Aviation law governs the operation of aircraft and the maintenance of aviation facilities. Both federal and state governments have enacted statutes and created administrative agencies to regulate air traffic.
The term aviation finance refers to the provision of capital to airlines and leasing companies so that they can purchase (or refinance) commercial aircraft. Capital can be in the form of debt or equity. Given insurers’ preference for fixed cash flows, this paper focuses on aviation debt.
While there are still plenty of markets providing aviation insurance. The cost of extensive losses compared to low premiums (loss ratio) in combination with the increasing cost of reinsurance has taken a toll. Previously when a company decided to raise rates, there was often another ready to offer a lower premium.
This time, everyone appears to be standing firm on their rate increases. Typical rate increase range from 5-15% but can be anywhere from 20-50% on accounts with elderly pilots or with helicopters. Another class of aircraft seeing tightening is light sport. In addition, carriers have been less open to writing business with past claims.
Today, there are less aviation insurance agents and brokers to work with. For example, AOPA Insurance Agency was recently bought out by another company, Assured Partners. Of the remaining brokers, many are not aviation insurance specialists with pilots on staff like those at Aviation Insurance Resources (AIR).
At AIR a knowledgeable pilot is your agent, and a human will always answer the phone. They do not have a call centre or require customers to press 0 to talk to someone. AIR keeps up to speed with the changing market and works closely with all the major aviation insurance markets to provide pilots with the best available rates while still obtaining the broadest coverage.
Question 3.
What are the usual covers offered under Aviation Insurance?
Answer:
Aviation Insurance Policy Covers:
As mentioned earlier, aviation insurance offers protection against a wide array of perils, dangers, risks and damages to policyholders. Given that aircraft are extremely prone to technical failures, accidents, terrorist activities, and such like, aviation insurance is extremely crucial.
The coverage provided by different aviation insurance policies have been listed below:
In-flight coverage:
This provides coverage against damages that can happen to the aircraft while it is mid-air (in motion). Though this is expensive, it is worth it as most accidents happen when a plane is a mid-air.
Hull all risk:
This coverage is ideal for flying clubs which operate small planes, private jets belonging to celebrities/politicians/business tycoons, aircrafts used for agricultural praying, etc. The policy covers any physical loss/damage faced by the insured plane. It also protects the plane against total loss and disappearance.
Hull/Spares War Risk:
Protection is provided to the insured plane and its spares in case of loss or damage resulted by anti-social activities like war, invasion, riots, hostilities, martial law, strikes, civil commotion, malicious activities and sabotage.
Loss of License:
It is a mandate for every aircraft crew member to hold a valid license. A license can be suspended on medical grounds leading to a financial loss for the crew member. This cover takes care of the financial loss incurred. The crew member can get the coverage in case of permanent total disablement or temporary total disablement due to bodily injury or illness.
Spares All Risk Insurance Policy:
If any loss/damage is incurred to the spares, tools, equipment and supplies of the insured aircraft or any damages caused to a property by the aircraft, it is covered.
Aviation Personal Accident (crew member):
This is usually granted annually and protects the insured crew member against injury, disablement or death as a result of an aircraft accident/mishap.
Companies Providing Aviation Insurance:
The following companies offer aviation insurance to customers
- New India Assurance Co. Limited
- Alliance Insurance Brokers
- AON Global India
- Farsight India Wealth Management
- Embed life.