Aviation Hull War and Allied Perils Cover
Aviation Hull War and Allied Perils Cover
The aviation market excludes war and allied perils in their business. The war and allied perils exclusion is known as the War, Hijacking and Other Perils Exclusion Clause. However, it is possible to write it back. i.e. include cover for war and allied perils by means of the Extended Coverage Endorsement (Aircraft Hulls). This states that the policy is extended to cover claims caused by the following risks.
- Strike, Riot, Civil Commotion or Labour Disturbance
- Any malicious act or acts of sabotage
- Hi – jacking or any unlawful seizure or wrongful exercise of control of aircraft or crew in flight made by any person or persons on board the aircraft acting without the consent of the insured.
Specified limits are put by the underwriters for this cover in respect of any one or all risks covered
Airports’ Liability Insurance
The basis airports’ liability is known as Airport Owners’ and Occupiers’ Liability policy. The underwriters agree to pay, on behalf of the insured all the sums that the insured becomes legally liable to pay to any person or persons as damages for bodily injury including death or loss of or damage to property of others caused by accident during the policy period.
The policy form groups the various liability sections into three as described below;
Section- 1 Premises Legal Liability
This protects the insured against bodily injuries or damage to property or loss of or about the specified premises premises as direct result of services granted by the insured or else in the course of any work or performance of any duties by the insured or employees whilst engaged in the business and caused by their default or negligence of defect in the premises. This will therefore cover claims arising out of the use of their premises by third parties or passengers, Liability may arise out of faulty elevators, escalators, food drinks contractors work and the like.
Section 2 – Hanger Keepers’ Legal Liability
This section covers loss of or damage to aircrafts or aircraft equipments not owned, rented, or leased by the insured. Or lent to them whilst on the ground in the care, custody or control of the insured or whilst being serviced, handled or maintained by them. An airport may act as a Bailee for aircraft or aircraft equipment which are repaired or serviced on the airport premises and it is this risk that this section seeks to cover.
Section 3 – Products’ Legal Liability
This covers the insured legal liability for bodily injury or property damage arising out of possession, use, consumption or handling of any goods or products manufactured, constructed altered, serviced, sold treated or repaired, supplied or distributed by the insured or their employees for products used in connection with aircrafts which have ceased to be in the possession or control of the insured.
Insurers can extend the policy to cover ‘control tower Liability’. This however will be at relatively high additional premium. The extension is necessary where the airport owner or operator controls movements in the airfield by radio or gives meteorological information.
This section excludes
- Damage to the insured goods
- The cost of replacing or repairing the goods specified
- Loss due to inadequate performance
The general exclusions applicable to all sections includes;
- Employers’ liability
- Contractual liability
- War risks
- Radioactive contaminations
- Noise, pollution
Breach of Warranty Insurance
Creditors insist that they retain a lien on the aircraft and that the aircraft is fully insured with their interest duly noted. There is the Breach of Warranty Cover which ensures that the lien holder(creditor) is protected to the extent of outstanding amount of the loan in case the operator is in breach of the policy terms and conditions. The cover is an extension of the existing policy.
Personal Accident Insurance
The cover is in respect of pilots, crew members, passengers and others using an aircraft such as maintenance engineers and ground crews and perhaps clerical or management staff, the cover may be given only while flying or may be on a 24-hour basis or a combination of the two. In most cases, the cover applies while those insured are performing their duties or while making a journey to or from their work place
Loss of Use Insurance
This form of insurance provide cover in the event that an aircraft is not available for use due to being laid up for repairs following an accident. It pays a pre-determined sum per day up to a predetermined amount per aircraft in the event that the insured is unable to utilize any of the aircraft specified in the schedule of the policy as a direct result of accidental damage to the aircraft in respect of which a valid collectible claim can be made under the insured’s All Risks Hull Policy.
The policy does not cover;
- Loss when the aircraft is declared a total or constructive loss
- Loss during an excess period stipulated in the policy
- Loss due to war or malicious acts of the insured, their agent or employees or any person acting under their control.
This cover can be extended to include the cost of temporary hire or rental of aircraft part following accidental damage to the aircraft where such hire or rental assists in resuming operation of the aircraft as early as possible.
Loss of License Insurance
Members of crew must hold a valid license which is reviewed periodically (for high medical standards) in order to carry out their flying duties. Without he licenses, pilot is out of work.
Loss of license insurance is designed to pay a fixed sum of money should the insured license be suspended following an illness or accident occurring within the policy period. This type of policy is often taken out by an individual pilot, by the employer as an employee benefit or even by by the crew association as a group policy. It is a condition of this policy that the insured must operate fully with medical officers including those performed by the underwriters. The main exclusions are;
- War and allied perils risks
- Suicide or intentional self-injury
- Intentional exposure to exceptional danger except in an attempt to save human life
- Criminal acts of the insured
- Pregnancy, childbirth or abortion
- Venereal disease