Introduction to Aviation insurance

Aviation insurance is coverage geared specifically to the operations of aircraft and the risks involved in aviation. Aviation insurance policies are distinct different from those for other forms of transportation and tends to incorporate aviation terminology as well as terminology and limits and clauses specific to aviation insurance.

The aviation market has been undergoing rapid changes as well as a new development in technology arising from production from larger and faster types of aircrafts. Aviation insurance is a combination of property insurance on the hull of the airplane and liability insurance in the following manner.

Property coverage – provided on all the risks basis or a specified peril basis for the hull, instruments, radios, and any other equipment in the airplane as described in the policy.

Liability coverage – provided in the event that the insureds’ negligent acts/ omissions result in bodily injury and or property damage to passengers and individuals who are not passengers.

Generally, aircrafts are exposed to the following risks;

• Loss, accident, destruction or disappearance of the aircraft
• Liability risks to the passengers, crew, airport authorities and other third parties
• Hijacking
• Consequential losses following the operation of the peril.
• Loss or destruction of the cargo
• Injury to passengers