The aviation industry is susceptible to a series of risks and threats, especially with respect to technical operations of an aircraft, and the consequent dangers. Aviation insurance is a specialised insurance which has been formulated to provide coverage to the specific operations of an aircraft and other possible risks in aviation. This type of insurance is quite different from other types of transportation insurance. The clauses, terms, limits in aviation insurance are quite unique.
Need for Aviation Insurance
The concept of aviation insurance has gained momentum only of late. A series of aircraft disasters (especially the mysterious disappearance of Malaysia Airlines with over 200 passengers on board) have not only prompted more and more people to buy aviation insurance, but it has also increased the number of claims by a huge margin. As aircraft disasters continue and are on a rise, it is being looked at as a very risky affair to fly. This has led to a lot of fear and consequently the need for aviation insurance.
Benefits of Aviation Insurance Policy:
- In this age when all of us are hard-pressed for time and are required to travel (for business or for leisure) taking a flight has become an indispensable part of our lives. Though flying comes with a huge amount of life risks, it is unavoidable. Be it turbulent weather, terrorist activities leading to hijacks, mysterious disappearance of flights, auto/technical failure, or a plane crash; taking a flight is never devoid of these life-threatening dangers. As they say, better safe than sorry; a comprehensive aviation insurance policy covers you against the dangers.
- In flight insurance provides coverage against damages that can happen to the aircraft while it is mid-air (in motion). Though this is expensive, it is worth it as most accidents happen when a plane is mid-air.
- You are protected from a series of natural weather turbulences and man-made calamities.
- You are duly compensated for any damages sustained which can happen after you have boarded a flight.
What it covers?
As mentioned earlier, aviation insurance offers protection against a wide array of perils, dangers, risks, and damages to policyholders. Given that aircrafts are extremely prone to technical failures, accidents, terrorist activities, and such like, aviation insurance is extremely crucial. The coverage provided by different aviation insurance policies have been listed below –
This provides coverage against damages that can happen to the aircraft while it is mid-air (in motion). Though this is expensive, it is worth it as most accidents happen when a plane is mid-air.
Hull all risk
This coverage is ideal for flying clubs which operate small planes, private jets belonging to celebrities/politicians/business tycoons, aircrafts used for agricultural praying, etc. The policy covers any physical loss/damage faced by the insured plane. It also protects the plane against total loss and disappearance.
Hull/Spares War Risk
Protection is provided to the insured plane and its spares in case of loss or damage resulting from anti-social activities like war, invasion, riots, hostilities, martial law, strikes, civil commotion, malicious activities and sabotage.
Loss of License
It is a mandate for every aircraft crew member to hold a valid license. A license can be suspended on medical grounds leading to a financial loss for the crew member. This cover takes care of the financial loss incurred. The crew member can get the coverage in case of permanent total disablement or temporary total disablement due to bodily injury or illness.
Spares All Risk Insurance Policy
If any loss/damage is incurred to the spares, tools, equipment and supplies of the insured aircraft or any damages caused to a property by the aircraft, it is covered.
Aviation Personal Accident (crew member)
This is usually granted annually and protects the insured crew member against injury, disablement or death as a result of an aircraft accident/mishap.
For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.