Explain aviation insurance. List and explain three covers provided by aviation insurance. technical feasibility; economic feasibility.

Answer Details

Meaning of aviation insurance

Aviation insurance is the class of insurance that provides cover against the risks associated with the operation, ownership and use of aircraft. It indemnifies the insured against loss of or damage to the aircraft itself and against legal liabilities arising from its operation, such as injury to passengers and damage to third party persons and property on the ground or in the air.

Three covers provided by aviation insurance

1. Aircraft hull insurance: This covers accidental physical loss of or damage to the aircraft (the fuselage, wings, engines and equipment) whether the aircraft is in flight, taxiing or on the ground. It indemnifies the owner for repair or the value of the aircraft.
2. Passenger liability insurance: This covers the operator's legal liability for death of or bodily injury to fare-paying passengers, and often for loss of or damage to their baggage, arising out of an accident during the flight.
3. Third party (public) liability insurance: This covers the operator's legal liability for death, injury or property damage caused to third parties who are not on board the aircraft, for example persons and property on the ground struck by a crashing aircraft.