Air transport insurance is a combination of insurance types. They provide for the obligation of the insurer to pay insurance in the amount of partial or full compensation for damage. In the event that it is applied to the insurance object.
Air transport is the fastest, but also the most expensive. The main scope of its application has been passenger transportation at distances of more than a thousand kilometers. Freight transportation is also carried out, but not so often. Accidents that are related to the aviation industry entail human casualties, as well as multimillion-dollar losses. They are carried by aircraft owners and third parties.
Reliable protection is offered by many companies that insure all types of aircraft.
The objects
The object of insurance of air transport means the property interests of the person whose insurance an agreement is signed related to the disposal, use and possession of the aircraft due to the destruction (theft, hijacking) or damage to the means of air transport, including furniture, motors, equipment, interior decoration etc.
Under the contract may be insured:
- engines, landing gear, wings and aircraft fuselage;
- navigation equipment, hydraulic systems, etc .;
- spare parts for the insured ship.
Requirements
What are the requirements for air transport insurance?
The insurer has the right to insure the means of air transport, if there is a corresponding license, which is issued by the insurance supervisory authority. In order to receive it, the company submits a statement of the established form to the federal body of the executive branch of power for the supervision of the activities of insurers, constituent documents, papers confirming the payment of charter capital, insurance rules, economic justification for the activities of the insurer.
rules
The rules provide for the definition of a list of objects and subjects of insurance of means of air transport; a list of insurance events, the occurrence of which gives rise to liability of the company for insurance payments; setting insurance terms ; insurance rates; the procedure for concluding agreements and paying insurance premiums. They should be accompanied by samples of forms of contracts and policies.
Insurance rules for air transport vehicles must be strictly followed.
Documentation
In order to conclude an agreement, the policyholder must submit the following documents to the insurance company:
- written application for aircraft insurance;
- confirmation of state registration of the vessel;
- papers on the book value of the vessel;
- aircraft operating conditions;
- certificate of suitability for aircraft flight;
- number of landings and raids, tail number, service life (residual life), number of overhauls of the aircraft;
- other necessary documents that allow the crew and aircraft to fly.
What are the risks of air transport insurance?
Features, Risks
The policyholder's duty is to inform his insurer of all information about the specifics of the aircraft, reducing flight safety, to follow all the requirements of technical and operational documentation, to follow the instructions of the authorities regarding flight safety.
When insuring aircraft, the insured amount may be set in an amount that does not exceed its insurance value, that is, the actual cost of transport by the time the agreement is concluded.
The insured amount established under the aviation insurance contract may be lower than the insured value of the vessel. Aircraft under such agreements are insured "only from total loss."
An aircraft is usually recognized to be completely lost if the cost of its rescue or recovery, including associated costs, is above 75% of the established insurance amount.
If the aircraft is insured “against all risks”, then the insurance indemnity is paid to the insured both in the event of the loss of the vessel or in the event of damage that occurs for any reason other than those specifically established as an exception to the policy.
The insurance agreement may be concluded for specific flights (with indicating the points of start and end of the voyage, places of intermediate landings) and for a specific period (in this case, the areas of operation of the vessel are fixed and the insurance period is fixed).
Insurance policy
The policy confirms the conclusion of an agreement on insurance of air transport means. One of the very first catastrophe policies was issued in London before the First World War. Until now, the London insurance market continues to be one of the main centers of aviation reinsurance and insurance, which represents most of the associations, insurance companies, pools, surveyors, brokers and other individuals and legal entities that are associated with aviation risk insurance in many world countries.
In international practice, there is a policy on insurance of air transport means against damage and death, which does not contain a detailed listing of risks covered by insurance. After approval of the insurance “against all risks” of the aircraft and rather short general conditions, special conditions, additions and exceptions are listed.
Such additions and exclusions (narrowing or expanding insurance coverage) can be entered into the text of the insurance conditions or given as annexes in the form of standard clauses that apply on the international insurance market.
Combined policies
In world practice, combined policies, insurance and air transport (“air-hull insurance”), and various types of liability, which are caused by their operation, are especially widespread. Such policies list the conditions that are common to all sections of the insurance agreement, as well as particular conditions that apply to a particular section.
The main section of the policy contains information received from the policyholder, agreed with him when signing the insurance contract, including information about the policyholder, beneficiaries, co-insurers, aircraft that are accepted for insurance, deductibles and sums insured for spare parts and aircraft, insurance period , the geographical framework of the operation of transport, the competence of crews, the nature of its use, etc.
If the conditions specified in the policy are violated, for example, changing the scope of the vessel’s use, its geographical operational limits, if a number of other conditions are violated, for example, piloting by a person who does not have such a right, deviating from the operating rules, etc. Insurance indemnity is not paid when violation not related to insuperable circumstances.
The procedures for insuring air and water vehicles are very similar.
Water transport
Water transport insurance is a combination of insurance types that stipulate insurance company obligations for insurance payments, their size is partial or full compensation of the damage that was caused to the insurance object. In this case, the insurance object means the property interests of a person for whom an agreement is concluded related to the use, possession, disposal of a vessel as a result of the destruction or damage of a means of water transport, including rigging, motors, equipment, interior decoration, etc.
CASCO ship insurance became the most common, in which ships with equipment, machinery, equipment (rigging), freight, equipment costs and other expenses associated with operation, and transport in the building are insured.
We examined how the insurance of air transport in Russia goes.