Risk of death/injury due to participation in aeronautics other than as a fare-paying passenger in licensed aircraft. The risk is excluded from personal accident policies but cover can be arranged. Aircraft personnel obtain cover in the aviation department.

Insurance covering all risks’ of loss or damage to an aircraft subject to exclusions. There is no cover for grounding due to directives from the relevant authority or the manufacturer’s directives, or consequential loss of income. The main exclusions are as follows: radioactive contamination/nuclear causes; war and allied perils (strikes, hijacking, sabotage, terrorism, confiscation, etc.); wear and tear; mechanical breakdown (i.e. fixing the broken part but not damage due to accidents caused by the breakdown); progressive damage. There are standard deductibles, e.g. $1 million for ‘widebodied’ aircraft. Geographical limits may apply. See AVIATION HULL WAR AND ALLIED PERILS INSURANCE.

policy Insures the amount an airline has at risk as a result of its hull policy deductible. Cover applies up to the deductible level, so it becomes an insurance of the actual deductible, subject to a small deductible itself. The intention is to cover ingestion damage to engines by foreign objects but it also covers damage to landing gear and fuselage. The policy follows the overlying hull ‘all risks’ cover subject to an annual aggregate limit.

Covers aircraft damage resulting from the war and allied perils that are excluded under aviation all risks insurance. The principal exclusions are as follows: nuclear war; war between five major powers (UK, US, France, Russian Federation, China); confiscation, seizure due to debt, failure to provide a bond or other financial causes; repossession or attempt thereat. Geographical limits may apply. War policies for large fleets attract an overall annual aggregate limit. The policies are not usually subject to a deductible.

The main policies are: 1. AVNIC 21/12/98. 2. Aerial form – an airport owners’ and operators’ liability policy. 3. Air displays policy – principally a public liability policy for promoters of air meetings and displays. 4. Cargo policy. An ‘all risks’ cover that, like a voyage policy, runs from start to finish and is not confined solely to the air travel part of the journey. 5. Deductible policy. See AVIATION HULL DEDUCTIBLE INSURANCE; DEDUCTIBLES. 6. Loss of licence policy. Compensates commercial pilots who lose their flying licence or suffer suspension for medical reasons. Cover can be standalone or added to other policies. 7. Loss of use policy. Covers loss of earnings when an aircraft is laid-up following accidental damage. 8. Personal accident insurance. Group personal accident cover can be arranged for both passengers and aircraft crew. Policies are effected by employers for their aircrew whose income is at risk through being ‘grounded’ by an accident. Policies effected by individual travellers for their own protection are often arranged in the accident department or by admitted liability personal accident insurance in the aviation department. 9. Satellite (or space) insurance is another development.
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Aviation insurance is written for both commercial airlines and general aviation and covers property damage of the airplane and third party liability coverage. Third party liability coverage is required in most states. The liability coverage is often outlined in the policy similar to that in an automobile policy.Physical damage insurance can be written as Inflight/In-motion and Not-in-flight/Not-in-motion. In the first instance, there is physical damage coverage only when the plane is moving or in-flight. The second type of coverage applies while the plane is on the ground and not moving. Not-in-flight/Not-in-motion is less expensive than In-flight/In-motion coverage. It is also possible to purchase “all risk ground and flight” physical damage coverage although it is much more expensive to do so.Because aviation insurance is not closely regulated as to coverage forms, policies can differ greatly. Additionally, the definitions in aviation insurance often differ from standard dictionary definitions and definitions found in other forms of insurance. For example, a common definition of an accident is “a sudden and unexpected event resulting in bodily injury, death, or property damage.” An accident in aviation insurance is defined by the National Transportation Safety Board Rule 830 and reads, an “aircraft accident means an occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight and all such persons have disembarked, and in which any person suffers death or serious injury, or which the aircraft receives substantial damage. (See Hangar Keepers Liability; Protection and Indemnity).

Promotes and protects the interests of UK aviation insurance companies. It provides a means of consultation and cooperation when drawing up standard policy and clause wordings in association with other aviation insurance interests at home or overseas.