On 17 th of December, 1903 Orville Wright flew an aeroplane for 12 seconds covering a distance of 120 feet. JRD Tata was the pioneer of aviation in India. In 1932 Aviation division of Tata Sons Limited was set up with mail service. In 1938 the Airline had carried a few hundred passengers too. In 1946, Tata Sons Ltd., was converted into Air India Limited. Aviation History
Main Airlines Insurance Coverage Hull All Risks Spares Liability Insurance
Hull All Risks Coverage Covers all risks of loss of or damage to aircraft unless otherwise excluded Covers flight and ground risks Coverage includes ingestion / Foreign Object Damage (F.O.D.) caused by a single recorded incident Main exclusion Mechanical Breakdown / Wear and Tear War, Hi-jacking and Other Perils Exclusion Clause AVN 48B Nuclear Risks Exclusion Clause AVN 38B Items detached from aircraft and held as spare parts Loss of Use
Hull All Risks Additional Provisions:- Missing aircraft Forced landing, salvage charges and expenses Cost of repairs Loss payee provisions (leased / financed aircraft) Leased components with Stipulated Loss Value Supplementary Expenses Search & Rescue Operations, Runway Foaming
Hull War and Allied Perils Coverage Covers loss of or damage to aircraft by War and Allied Perils as excluded from All Risks policy such as War / Civil War etc. Act of Terrorist, Strike / Riot, Civil Commotion, Confiscation etc., Hijacking Standard market wording - LSW 555B / LSW 555C Main exclusions Hostile detonation of nuclear weapon. War between UK, USA, France, Russian Federation, China Confiscation etc. by government of registration Confiscation etc. for financial reasons. Repossession by title holder Delay, loss of use, consequential loss
Hull War and Allied Perils Limits Each aircraft covered for the same agreed value as under the hull all risks policy subject to a policy aggregate sum insured per annum Deductible No deductible Additional Provisions:- Extortion and Hijack Expenses (90% of payments properly made) Leased components with Stipulated Loss Values
Hull War and Allied Perils Cancellation, Revision and Automatic Termination Provisions:- Insurers may issue 7 days notice to review premium and/or geographical limits at any time Automatic review of premium and/or geographical limits on expiry of 7 days from hostile detonation of nuclear weapon Insured or insurers may cancel policy by giving 7 days notice prior to the end of each policy quarter Automatic policy cancellation in the event of war between UK, USA, France, Russian Federation, China (if aircraft are in the air, coverage continues until first landing)
Spares All Risks Coverage Covers all risks of loss or damage to spare aircraft engines, parts or equipment owned by the Assured or for which they are responsible Covers whilst in storage or in transit Covers Ground Equipments Covers Engines
Spares All Risks Main Exclusions Mechanical / electrical breakdown, wear and tear. War, Hi-jacking and Other Perils Exclusion Clause (AVN 48B) (may buy-back cover normally in conjunction with hull war) Nuclear Risks Exclusion Clause AVN38B Inventory losses Loss arising under process and directly resulting therefrom Any spare whilst fitted to an aircraft
Liability Insurance Liability can be divided basically into two categories: Liability in respect of Passengers, Baggage, Cargo and Mail carried on the aircraft. These liabilities result from the operations the airline is set up to perform and are normally the subject of a contract of carriage like a ticket or airway bill, which provides some possibility of limiting the airline's liability. Aircraft Third Party Liability - the liability for damage done to property or people outside the aircraft itself.
Every airline will arrange liability insurance for these two categories, normally in a single liability policy. In many countries there are requirements laid down imposing minimum limits of liability that are a prerequisite to obtaining an operator's licence. Elsewhere limits are specified for an aircraft to be allowed to land. The size of limit required is often related to the size of the aircraft concerned (and its potential for causing damage). A small aircraft operating only in remote regions and using small airstrips incurs considerably less potential exposure than an aircraft flying into and out of major airports.
Legal Liability Coverage Will indemnify against legal liability for bodily injury or property damage suffered by third parties (including passengers baggage and cargo) arising from the aviation operations of the airline and caused by an occurrence Relates mainly to Operation of aircraft Injury to passengers Damage to cargo / baggage Operations at airports and other aviation premises Services to other airlines Can include war and allied risks
Legal Liability Non-Aviation Liability Clause defines extent of aviation liability:- Occurrences involving aircraft or parts or equipment Occurrences arising at airport locations Occurrences arising at any other location in connection with the Insureds business of transporting passengers or goods by air Occurrences arising out of the supply of goods or services to others:- in connection with the use and/or operation of aircraft involved in the air transport industry