Insurance WAEC

Aviation Insurance

Overzicht

An aircraft is one of the most expensive machines a business can own, it carries hundreds of lives at once, and it can fall on a city it has never visited. No single insurer in Nigeria, or anywhere else, could pay for all of that alone. Aviation insurance is the answer the market built: a bundle of covers that protects the aircraft, its passengers and everyone on the ground, backed by pools and reinsurers who spread one catastrophe across the whole world.

In this lesson you will meet the three covers at the heart of every aviation programme, learn the risks that make this class unlike any other, see how the Chicago and Montreal Conventions and Nigerian law shape what an airline must buy before it may fly, and understand exactly why these risks are almost always reinsured or placed with a pool. You will work through the calculations an examiner can build from a single air crash.

Doelstellingen

  1. Identify the types of aviation insurance policy and the cover each provides
  2. Describe the risks peculiar to aviation insurance
  3. Explain the effect of international regulation on aviation insurance
  4. Explain why aviation risks are commonly re-insured or placed with a pool

Mindmap

Dit onderwerp is in kaart gebracht zodat je ziet hoe de ideeen samenhangen.

Flashcards

Snelle geheugentraining op wat bij dit onderwerp getoetst wordt.

Lesnotitie

A wide bodied jet leaving Lagos may be worth more than ₦20,000,000,000. On board sit three hundred passengers, each of whom the airline is bound by law to protect. If that aircraft comes down, three losses crystallise in the same instant: the machine itself, every passenger on it, and whatever it strikes on the ground. One event, three enormous bills, all payable at once. Aviation insurance exists to answer that single frightening possibility, and the way it is built, split into covers, then shared through pools and reinsurers, follows directly from it. Understand the crash and you understand the whole class.

Lesevaluatie

Gefeliciteerd met het voltooien van de les op Aviation Insurance. Nu je de sleutelconcepten en ideeën, het is tijd om uw kennis op de proef te stellen. Deze sectie biedt een verscheidenheid aan oefeningen vragen die bedoeld zijn om uw begrip te vergroten en u te helpen uw begrip van de stof te peilen.

Je zult een mix van vraagtypen tegenkomen, waaronder meerkeuzevragen, korte antwoordvragen en essayvragen. Elke vraag is zorgvuldig samengesteld om verschillende aspecten van je kennis en kritisch denkvermogen te beoordelen.

Gebruik dit evaluatiegedeelte als een kans om je begrip van het onderwerp te versterken en om gebieden te identificeren waar je mogelijk extra studie nodig hebt. Laat je niet ontmoedigen door eventuele uitdagingen die je tegenkomt; beschouw ze in plaats daarvan als kansen voor groei en verbetering.

  1. Under an aviation insurance programme, loss of or damage to the aircraft itself is met by the: A. Passenger liability cover B. Hull cover C. Third-party liability cover D. Products liability cover Answer: B
  2. Goods carried by air are normally insured under a: A. Hull policy B. Hull war policy C. Marine cargo policy D. Passenger liability policy Answer: C
  3. The international convention that fixes an airline's liability to international passengers and has been adopted into Nigerian law through the Civil Aviation Act is the: A. Chicago Convention B. Rome Convention C. Montreal Convention D. Geneva Convention Answer: C
  4. An aircraft hull worth 10,000,000,000 naira is co-insured, the leading insurer taking a 20 per cent line. On a total loss the leading insurer pays: A. 10,000,000,000 naira B. 8,000,000,000 naira C. 5,000,000,000 naira D. 2,000,000,000 naira Answer: D
  5. Aviation risks are commonly reinsured chiefly because: A. premiums charged are very small B. a single event can concentrate hull, passenger and third-party losses together C. aircraft almost never suffer accidents D. the law forbids insurers from keeping any aviation risk Answer: B

Aanbevolen Boeken

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ondertitel: Thirteenth edition
Uitgever: Pearson
Jaar: 2016
ISBN: 978-0-13-408257-8
Beschrijving: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ondertitel: Tenth edition
Uitgever: Wiley
Jaar: 2008
ISBN: 978-0-470-08753-4
Beschrijving: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ondertitel: Second edition
Uitgever: Himalaya Publishing House
Jaar: 2017
ISBN: 978-93-5097-079-9
Beschrijving: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Herhalingsvragen

Benieuwd hoe eerdere vragen over dit onderwerp eruitzien? Hier zijn een aantal vragen over Aviation Insurance van voorgaande jaren.

WAEC SSCE - Insurance - 2014

Vraag 1 Verslag

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

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.
Bekijk antwoord