Aviation operations have unique and complex insurance needs. At Giant strides we are able to develop tailor made coverage and services that are specific to the aircraft owners, operators, contractors, service companies and other related operations in the field.
We understand the risks in the Aviation Sector and will work to protect our policyholders against accidental losses by providing you with a combined or any of the following insurance products.
TYPES OF AVIATION INSURANCE.
There are various types of insurance coverage existing for aircraft operators, aviation training institutions and other aviation service providers. While some of these insurance covers are regulated, others are left to the discretion of the aircraft operators, training institutions and the other service providers. These various forms of aviation insurances include:
(i) Hull All Risks Insurance:
This insurance is required by aircraft owners or operators to cover aircraft and its spares/equipment against accidental loss or damage which the aircraft may suffer whilst in flight, taxing and /or on ground. The aircraft is usually insured on an agreed value basis bearing in mind the cost of buying similar aircraft and other associated costs, should the event insured occur. This policy ensures continuity of business should loss or damage to aircraft occurs. This insurance cover is presently mandatory to be on board an aircraft. It is also a statutory requirement for issuance of Certificate of Airworthiness of an aircraft.
(ii) Aero Engine Breakdown Insurance:
This Policy indemnifies the Insured in respect of loss suffered as a result of sudden breakdown of aircraft engine not attributable to normal wear and tear, subject, however, to the terms, exclusions and conditions of the policy. This insurance will afford any operator or Owner the opportunity of speedy return to operation should the aircraft be grounded due to sudden breakdown of its engines.
(iii) Deductible Insurance
Because of the high standard deductible on the Hull All-Risks Policy, this form of cover may be arranged to reduce the standard deductible to the minimum level allowed on payment of additional premium. This insurance is particularly necessary because the high standard deductible that are usually imposed per aircraft can adversely affect the cash flow position of any Airline should a loss or damage occur to the insured aircraft.
(iv) War and Allied Perils Insurance.
This insurance is also required by aircraft owners against loss or damage to the aircraft and its spares as a result of war related risks like confiscation, strikes, riots, civil commotion, terrorism, labour disturbances, malicious act or act of sabotage, hijacking or any unlawful seizure, wrongful exercise of control of aircraft or crew in flight. Passengers and other third parties who suffer bodily injury, death and property damage arising from any of the foregoing contingencies are also compensated under this cover. The Hull value for this insurance should be the same as in Hull All-Risks Insurance.
(v) Liability Insurance
This cover indemnifies the Insured against all sums which the Insured shall become legally liable to pay as damages in respect of accidental bodily injury or death of passengers who are on board the Insured’s aircraft, including whilst entering into, being carried in or alighting from the aircraft. The coverage is also inclusive of third party bodily injury, death and property damage arising from the use of Insured’s aircraft. It also covers liability in respect of damage or loss of baggage, mail and cargo.
And in view of the extant EU Regulations, appropriate Limits of Liability should be selected. We shall arrange to secure Coverage for War Liability to ensure all round protection.
(vi) Loss of Use Insurance:
Aircraft Owners and Operators are exposed to high potential loss of earnings as a result of laying up of an aircraft for repairs following an accident admissible under the Hull All-Risks policy. An amount per day is usually agreed at the commencement of the risks subject to maximum number of days stated in the policy. The policy excess is in days ranging from 14 to 21 days as may be applicable. The amount required per day and the period of indemnity i.e. 90 or 180 days to be provided by the proposer.
Commercial airlines can arrange for this type of Insurance to cover loss in reduced earnings due to Insured aircraft being grounded for repairs.
(vii) Personal Accident Insurance:
This Policy covers the members of Crew/Passenger against death, temporary or permanent disablement resulting from an accident occurring during a flight. A capital sum insured is fixed at inception and the policy could ether be issued on flight risks only or 24 hours basis.
(viii) Breach of Warranty Insurance:
This covers the financial interest of a Bank or financial company who have loaned money for the purchase of an aircraft. Usually, the bank will insist that they retain a lien on the aircraft and the aircraft is fully insured for hull “all risks” and “breach of warranty” cover is effected for the outstanding amount of loan. The effect of this is that if the aircraft is destroyed as a result of failure of the Insured to comply with a warranty by virtue of a breach of warranty , the bank or finance company is to be paid up to their outstanding financial interest in the aircraft.
(ix) Loss of License Insurance:
This provides insurance coverage for Aircrew against permanent and temporary withdrawal of license due to accident, sickness or disease. The policy is ideal for Pilots or their employers to protect them against this contingency.
(x) Unearned Premium Insurance:
This Policy enable aircraft Owners or Operators to collect a proportion of the Hull premium paid at inception due to deletion of aircraft from schedule by reason of payment made on a total loss basis.
(xi) Product Liability Insurance:
This covers the risks of claims arising from fault in the design or manufacture of aircraft or parts thereof, which later causes an accident. The potential liability here is enormous as claims can be against aircraft/spares manufacturers by aircraft Owners for own damage, passengers and third parties who suffer losses arising from this contingency.
(xii) Hangar Keeper’s Liability:
This is to protect the hangar keeper against loss or damage to aircraft or other property, which is entrusted to him for safe custody. The limit of liability will depend on the type of aircraft being handled or kept by the Hangar keeper.
(xiii) Airport Owners/Operators Liability Insurance:
This insurance is for any airport Owner/Operator and Service Providers against the risks that may arise in connection with the incorrect instruction given to an aircraft which could lead to one aircraft getting in the way of another when landing or taking-off particularly at peak periods. Losses could also arise from handling of aircraft and passengers on the ground, catering services within Airport premises, due to fault lifts, escalators, footways or vehicles owned or operated by the Airport Authority. The potential losses arising from any of the foregoing contingencies could be enormous; hence the need to transfer these risks to insurance companies cannot be over emphasized.
(xiv) Aviation Cargo Insurance
This policy provides cover against the loss or damage to the property insured by any accident or misfortune arising from perils insured against.
