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Aviation Insurance More Than Sky High For The Fly Boys
hose magnificent men in reason it is recommended that a
their flying machines…” broker, specialising in aviation
Ever since the Wright insurance be engaged to arrange
brothers pioneered our ascent cover.
into the skies we have strived to
fly higher, faster, further with When applying for aviation
aeronautical advancements insurance, several matters will
surpassing one another at an be taken into account including:
ever-increasing rate.
• Sum insured: Aviation policies
Taking to the skies is, of are divided into
course, much more than the
romantic notions upheld in quaint i. Hull: The loss of or damage to
versions of “Up, up and Away” or the aircraft.
“Come fly me, let’s fly, let’s
fly away…” It is, for most ii. Liability: Loss of or damage
aircraft owners, a significant to property belonging to others
part of their livelihood and not and/or bodily injury to others as
to be contemplated without the a result of the insured’s
proper insurance. negligence
Aviation insurance is different Aviation insurance is based on
from other forms of insurance in “agreed value”. This means that,
that it is very subjective. Due in the event of a total loss in
to the vast array of aircraft respect of the hull, the amount
types, uses and pilot experience, agreed to in the policy is what
policies should always be will be paid upon acceptance of
specifically tailored to suit the the claim.
unique requirements of each
individual applicant. For this It is vital that the aircraft be
insured for its true value as
major difficulties can arise for Helicopter accidents are also
the owner if the amount is under more likely to result in a total
or overinsured. For example, if loss of the aircraft than fixed
an aircraft is grossly wing accidents. What would seem a
underinsured, the agreed value relatively minor “heavy landing”
will not be enough to enable the in a fixed wing aircraft would
owner to replace it. most likely write-off a
helicopter.
In the case of overinsurance, the
insurer may decide to approve a The best way to ensure the lowest
lengthy repair process, costing price possible is quoted for the
more than the market value but aircraft, fixed wing or rotary,
less than the agreed value. This is to be clear with the insurer
will result in major delays to exactly what it will be used for.
plans of getting “back in the For business owners, it may be
air”. worthwhile considering whether
diversifying from the central
Liability is a different issue business function is worthwhile
with settlements determined in if diversification results in
most large cases by the courts. more hazardous usage of the
aircraft.
• Type of aircraft: Generally,
helicopters cost more to insure • Pilot Experience: Pilot
than fixed wing aircraft. Here in experience and qualifications are
Australia, this is partly due to the most important aspects of
the manners in which they are determining the amount of the
employed, for example, mustering premium and level of coverage. In
livestock and heavy industrial some cases, cover may not be
use. extended if the pilot has not
enough hours in the air logged. iii. Named Pilots: These are
persons you will be permitting to
If any persons other than the fly the aircraft but who do not
owner are to be flying the meet the OPW standards. Using
aircraft it is the owner’s Named Pilots will generally mean
responsibility to ensure all a higher premium.
details regarding additional
pilots be accurate and up to It is useful to consider the
date. Inaccurate information can insurer’s position here. An
lead to a claim being rejected. aircraft is a high level of risk
There are basically three types to the insurer. In order to
of pilots able to fly the insured underwrite that risk it must be
aircraft: worthwhile. Since most aircraft
accidents are statistically due
i. Owner: Self explanatory to pilot error, more premium must
be charged for less experienced
ii. Open Pilot Warranty: The Open pilots to justify the risk.
Pilot Warranty (OPW) is the
minimum standard of requirements Once cover is granted, renewal
that must be met in order for a after one year is not always
pilot to fly the insured automatic.
aircraft. Although names of OPW
pilots do not have to be notified As the renewal date approaches,
to the insurer, it is crucial to cover is re-evaluated along with
ensure that all OPW pilots meet the premium. This can have a
the requirements for the insured positive outcome as pilot
aircraft. Remember that the OPW experience and any additional
for one type of aircraft may not training undertaken will be
be satisfactory for another. considered when calculating the
new premium.
one may deem “cheap” is
Overall, the main issue to be irrelevant. What is relevant is
understood is that all that the premium will be a true
information given regarding the reflection of the risk.
aircraft to be insured and its
pilot(s) is to be as accurate and And that is as insurance should
up to date as possible. Whether be.
or not this leads to a premium
About the Author:
QuoteSphere was developed to help those that are in the middle of an insurance crisis. In the United States we have seen a continuing rise in the cost of insurance, and there seems to be no end in sight. The cost of aviation insurance has taken the largest increase at 65% in the past 3 years. http://www.quotesphere.com
Source: www.isnare.com |
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