Aviation Risks Insurance
All kinds of responsibility for the operation of air transport, the owners of air terminals, hangars, manufacturers of aircraft and other products of aircraft and aviation-related complexes, is subject to insurance and is called aviation risk insurance.
Norms and rules of aviation insurance were based on the conditions of insurance of ships and cargo. In the case of comprehensive aviation risks insurance, the total funds that enable insurance payment are taken into account. Here, universal, specialized insurance organizations are guarantors, syndicates.
For many insurance companies, aviation insurance is unprofitable. Because this type of insurance has its own specifics, which are characterized by the risks of catastrophes.
Most of the clients of insurance of aircraft in insurance companies in our time are: companies engaged in all kinds of air works, commercial consultants air carriers, air taxi service operators, aircraft manufacturing plants, companies and intermediaries engaged in the sale of aircraft, private owners of aircraft, flying clubs, commercial and industrial organizations in the park which have air transport services for freight and personnel.
The insurer ‘s interest consists in the possibility of preserving the insurance object – the aircraft as a whole and its separate hull parts, wings and tail part, chassis, electro – hydraulic systems, radio – navigation equipment located both inside and on the air transport hull, withdrawn from the aircraft until the establishment of such parts in place of those removed.
According to the contract, the insurance company must compensate in monetary terms or reduce the amount of damage caused for any reason during the entire period of insurance during the stay of the aircraft in flight, while taxiing, while staying in the parking lot with the engine off, on the ground.
Air transport can be insured under the agreement on the following provisions (circumstances): “Exclusively from total loss” or “From all sorts of risks”.
“Exceptionally from total loss,” under this insurance event means the complete destruction, destruction, death of air transport. Compensation and payment of insurance policy for this type of insurance event occurs in the amount of the full amount of insurance.
“From all sorts of risks” – the insurance company reimburses the insurance payment not only with the complete destruction of the aircraft, but also with its various breakages and damages that have appeared for any reason other than an intentionally prescribed amendment to the insurance policy, but the amount of payment is conditioned by the conditions and severity insured event.
The damage is not compensated due to: corrosion, electrical wiring and equipment malfunctioning, aircraft wear, design flaws, mechanical malfunction of individual devices, parts. Provided that these defects did not cause damage or death caused by: ignition, impact, lightning or collision of aircraft with each other or with other objects, as well as deliberate action by third parties.
If there is a natural wear of a particular part and the aircraft is damaged, the damage to the insurance object is paid with deduction of the cost of the part.
At the time of conclusion of the contract on insurance of air transport, the amount of insurance is determined in an amount not exceeding the true value of the aircraft. Sometimes insurance is allowed in the amount of a lower cost of air transport.
Conditions for insurance of aircraft:
Disappearance of air transport (according to the rules of an air vehicle it is considered to be missing, if after take-off there is no information and information for 15 days or more)
Forced landing and the cost of saving air transport (force majeure circumstances and the absence of a chance of take-off from the place of forced landing, payments are made in certain criteria, expediently the costs of providing take-off or transportation of air transport agreed and agreed with the insurance company);
The value of repairing damaged air transport, when concluding a contract, is determined within the limits of the corresponding payments, if indeed a breakdown occurred due to the insured event.
Attribution of total aircraft death
The right to abandon (when the insurance company is obliged to pay the full amount of insurance in favor of the client.In accordance with the rules, the application should be made within 6 months after the insured event.To do this, the insurer does not need confirmation.When the abandon enters into force, the insurer obtains all the rights to the property that appeared in the insurance contract.)
According to the rules of insurance of aircraft under the terms of the contract, the client (the policyholder), often, can not declare the abandon without the consent of the insurance company, namely to refuse in favor of the client from his rights to the insured property in order to obtain insurance compensation in the amount of the insured amount.
If there is an aparésery, leasing, buying air transport on credit. The insurance contract includes notes reflecting the interests of the parties – shareholders of the relevant legal relationships.
The pricing of insurance depends on certain factors and increases with a low level of safety, the skill of flight and flight personnel, the administration and all ground personnel who are involved in training and maintenance for the operation of air transport.
The calculation (distribution) of major risks among insurance companies is often undertaken by brokers who perform settlement and other technical work on the assignment or with the consent of the insurance company – the leader in this type of insurance.