FAQ (Frequently Asked Questions) @ Help

What does Additional insured mean?

Anybody insured besides the original insured under the same insurance policy is an additional insured. People/Organizations besides the named insured who have an insurable interest in the insured asset are the one's who can be added to the same insurance policy as additional insured.

Can my financer also be insured in the same insurance policy?

Yes, he can be insured as an Additional Insured, provided the Insurance company agrees to extend this cover to the Financer. Please ensure to get the written confirmation/endorsement from the Insurance Company.

Can my Group companies be insured under the same insurance policy?

Yes, they can be insured as an Additional Insured, provided the Insurance company agrees to extend this cover to the Group Companies.

Can I make amendments in the insurance policy/certificate?

Yes, but it depends on the kind of amendment you want to make and provided the original insurance policy has no clause which stops you from making amendments. Also, ensure to take a written confirmation from the insurer. Please note that in insurance no verbal communications are accepted at the time of claim.

What all information should be shared with the insurer after the insurance policy/certificate has been purchased?

The insurer must be informed about :(1)Any change in risk rg. Change of Hangar construction, change of pilot, change in usage of aircraft etc. (2)Change in name of the insured or address etc. (3)Variation in sum insured. (4)Change in insurable interest eg. Sale, mortgage (5) Extension of insurance to cover additional perils. (6)Cancellation of insurance. (7) Flying aircraft in excluded Geographical areas. (8)Landing of an aircraft in an unlicenced area.

Am I required to Inform the insurance company of change in the name of the pilot operating the aircraft?

Yes, it is mandatory to inform the change in name of the pilot's of the aircraft else the insurance company has the right to refuse claims. However, this is not necessary if you have purchased Open Pilot Warranty, unless & until the policy conditions mandate you to inform the change in pilot name.

What if I use the aircraft for purposes other than those declared by me while buying insurance?

Aircraft used for any other purpose will make the insurance policy void. In order to keep the insurance valid, Suggest, you must inform your insurer in writing and take his written approval if the aircraft is used for any other purpose than declared in the proposal form. Also, ensure to take a written confirmation/ get an endorsement for the same done on the insurance policy.

Can the insurance policy be assigned?

Yes, it can be assigned but after written consent from the insurance company. It should be verified by endorsement by the insurance company.

What if I use the aircraft for purposes other than those declared by me while buying insurance?

Aircraft used for any other purpose will make the insurance policy void. In order to keep the insurance valid, Suggest, you must inform your insurer in writing and take his written approval if the aircraft is used for any other purpose than declared in the proposal form. Also, ensure to take a written confirmation/ get an endorsement for the same done on the insurance policy.

Can I claim expenses incurred towards dismantling the aircraft, moving it to the nearest aerodrome/repairing agency & re-assembling even if the aircraft has sustained no damage? Is there any claim limit for such expenses?

Yes, you can claim this amount if you have purchased Risk of flight cover & the insurance policy allows you to claim such amount(within the claim sub-limit mentioned in the policy). Please note that this claim can be filed if the aircraft through force majeure alights in any place from which it is unable to take off again.

What all expenses can be claimed in the event of damage to the aircraft? Is there any claim limit?

If you have purchased Hull All Risk Insurance and if the policy allows, then, after obtaining written consent of the insurance company, reasonable expenses under following heads can be claimed (as per the claim limit mentioned in the insurance policy) : (1)Maintenance of watch on the damaged aircraft to safeguard it from further damage. (2)If risk of flight cover is taken, the necessary test flights. (3)Cost of obtaining a new Certificate of Air worthiness with validity from the date of accident till the date of expiry of the Current Certificate of Airworthiness. (4)Any other expenses, if mentioned in the insurance policy.

If I choose, the Sum Insured as $10 Million as my Hull Insurance cover, will this apply to the entire coverage?

No, even if you choose $10 Million as Hull All Risk insurance, there might be sub-limits to the coverage's eg. Hull Total Loss will be $10 Million; Claim amount for expenses incurred to safeguard the damaged aircraft & test flight expenses limited to $ 10,000/- and so on. Hence, one must very carefully go through the sub-limits mentioned in the insurance policy and negotiate with the insurer to get the best limit at a reasonable cost.

Will I get a new aircraft in case there is a Total Loss of the insured aircraft?

Yes, but this will be paid only if you have opted for Replacement value at the time of buying insurance. Again, the premium for taking this option is much higher than the insurance taken on Agreed Value basis. In Aviation sector, due to high premium of replacement value option, Hull insurance is usually bought by the insured on Agreed Value basis.

What is the difference between Hull All Risks-not in flight insurance & Hull All Risk Insurance?

Hull All Risks Insurance, is a wider cover than Hull Risks-not in flight insurance. Hull All Risks insurance insures the aircraft while on ground or in flight whereas Hull All Risks-not in flight insures the aircraft while on Ground. Hull All Risks Insurance has higher premium as compared to Hull All Risks-not in flight Insurance.

Which is a better cover - Hull All Risks-not in flight insurance or Hull All Risks Insurance?

Both the covers have their own relevance. It depends on the Risks that one needs to be covered for. However, Hull All Risks insurance is a broader cover than Hull All Risks -not in flight insurance. Hull All Risk-not in flight cover is generally opted by those - (1)Who are confident that they run no risk when the aircraft is in flight & thus save premium by buying insurance for aircraft while on ground. (2)Who want to buy insurance for Grounded Aircrafts.(3) Others, as per the business need.

What is Hull Insurance?

Hull Insurance refers to the insurance of an Aircraft body & the accessories attached to it. It is an insurance for the Loss or damage caused to an Aircraft. Hull Insurance basically provides 02 types of coverage's : (1) Hull All Risk Insurance-While Not in flight (2) Hull All Risk Insurance. The insurance can be purchased on Replacement value or Agreed Value basis. Warranty, term & conditions guidelines mentioned in the insurance policy must be adhered to, because the insurance company reserves the right to deny claims if it is found that the loss occurred due to non-adherence of Warranty clause/Terms & conditions. Some of the common exclusions in this insurance are : War & Nuclear Risks; mechanical or electrical breakdown; failure of equipments, components or accessories; damage due to wear & tear, damage due to noise or vibration including sonic boom; flight of aircraft outside the geographical limits mentioned in the policy; usage of aircraft for purposes other than stated in the policy; illegal usage of an aircraft; aircraft being piloted by any person other than stated in the policy; aircraft landing on unlicenced area unless due to force majeure etc. One must carefully read the exclusions section to be aware of Risks that are not covered and explore the possibility of getting the excluded risks covered by paying additional premium.

What is Hull All Risks-not in flight insurance?

Hull All Risks-not in flight coverage, insures the aircraft from any loss of or damage while it is on ground ( with some exclusions s mentioned in the exclusions section of the insurance policy). The premium of 'Hull All Risks-not in flight insurance' is lower than that of 'Hull All Risk Insurance.' Warranty guidelines mentioned in the insurance policy must be adhered to, because the insurance company reserves the right to deny claims if it is found that the loss occurred due to non-adherence of Warranty clause. One must carefully read the exclusions section to be aware of Risks that are not covered and explore the possibility of getting the excluded risks covered by paying additional premium.

What is Hull All Risks insurance?

Hull All Risks insurance is a broader cover than Hull All Risks-not in flight cover. It insures the aircraft from any loss of or damage while it is on ground or in flight(with some exclusions mentioned in the exclusion section of the insurance policy). The insurer has an option to pay for, replace or repair for accidental loss or damage to the aircraft, including disappearance of an aircraft and remaining unreported for 60 days after commencement of flight. Warranty , Terms & conditions guidelines mentioned in the insurance policy must be adhered to, because the insurance company reserves the right to deny claims if it is found that the loss occurred due to non-adherence of Warranty clause/terms & conditions. Some of the common exclusions in this insurance are : Terrorism, Hijacking, malicious damage, Strikes, Riots, civil commotions , labor disturbances; Politics ;act of sabotage; Confiscation etc.by order of Government/public/ local authority; wrongful exercise of control of the aircraft /crew in flight without the consent of insured War & Nuclear Risks; mechanical or electrical breakdown; failure of equipments, components or accessories; damage due to wear & tear, damage due to noise or vibration including sonic boom; flight of aircraft outside the geographical limits mentioned in the policy; usage of aircraft for purposes other than stated in the policy; illegal usage of an aircraft; aircraft being piloted by any person other than stated in the policy; aircraft landing on unlicenced area unless due to force majeure etc. One must carefully read the exclusions section to be aware of Risks that are not covered and explore the possibility of getting the excluded risks covered by paying additional premium.

What is Hull War Risk Insurance?

Hull War Risk Insurance is generally taken as a supplement to Hull All Risk / Hull All Risks-not in flight insurance. This an important insurance to insure the Loss of or damage to an aircraft arising due to Strikes, riots, civil commotions ,labor disturbances; Terrorism/Politics ; Malicious act or act of sabotage; Confiscation etc.by order of Government/public/local authority; Hi-jacking or wrongful exercise of control of the aircraft /crew in flight without the consent of insured. There are several combinations can be purchased in this insurance. Hence, one must negotiate the coverage's available in this product. One must clearly mention the insurance amount required in this product.

What are the basic coverage's available in standard Hull All Risk Insurances?

Standard Hull All Risk Insurance normally, provides following coverage's : (1) Any loss/damage to the aircraft. (2) Dissapearence of the aircraft & unreported for 60 days after the commencement of flight. (3) Aircraft Dismantling, it's removal to the nearest aerodrome/repair station and it's re-assembling expenses; reasonable necessary emergency expenses incurred for safety of the aircraft - this amount can be claimed only If the aircraft alights in a place due to force majeure but is unable to take-off from there. (4) In case of damaged aircraft & after written consent of the insurer - (a) Expenses incurred to safeguard the aircraft from further damages. (b) If Risk of flight cover is taken - then, necessary test flight expenses. (c) Cost of getting new Certificate of Airworthiness with validity up to the current Certificate of Airworthiness & effective from the date of accident.

Does Hull All Risk insurance cover loss due to Risks viz. Terrorism, Malicious Damage , Hijacking?

No. You need to buy Hull War Risk insurance , if you want your aircraft to be insured from Risks like Terrorism/Politics, Strikes, riots, civil commotions ,labor disturbances; Malicious act or act of sabotage; Confiscation etc.by order of Government/public/local authority; Hi-jacking or wrongful exercise of control of the aircraft /crew in flight without the consent of insured. Several combinations might be available, hence, please check with the insurer about the coverage's provided by him in this insurance.

If I buy Hull all Risk insurance, then is my aircraft covered from any & all loss/damage caused to it?

Yes, the aircraft will be covered from loss/damage caused to it except for the Loss caused due to the Risks excluded in the exclusions section of the policy.

What is Open Pilot Warranty/clause? to it?

This clause also known as 'Open Pilot Warranty' & 'Un-named pilot clause'. In normal insurance policy, the insured is required to inform the insurance company about the change in the name of the pilot of the insured aircraft. If the insurer is not informed about the pilot change then the insurance policy gets void and insurance company gets the right to refuse claims. By getting 'Open Pilot Warranty' clause inserted , the insured gets the liberty of not informing the insurance company about the change in name of pilots . This clause allows both named and un-named pilots to fly the aircraft. The pilot with an experience in terms of minimum Flying hours & having prescribed ratings can fly the insured aircraft without affecting the insurance cover of the aircraft. It lays down the minimum qualification & experience(in terms of hours, ratings etc.) that an un-named pilot must have to be able to fly the insured aircraft.

Can I buy Hull insurance policy without providing the name of the pilot?

Yes, you can provided the insurer agrees to it. Please ensure to get Un-named pilot clause (also called Open pilot clause/Open Pilot Warranty ) inserted in the insurance policy.In Aviation Insurance, the insurance seeker is required to mention the name of the pilot who will fly the aircraft. However, at times the name of the pilot is not known. In such circumstances, by inserting this clause the un-named pilot having certain minimum flying qualifications can fly the aircraft.

Does Hull 03rd Party Liability Insurance cover me, my family members, business partners, my employees, contractors & my assets?

No, none of them are covered, till the time they are in the course of employment with the insured or performing their duties on behalf of the insured. As an insured, you need to buy separate insurances to cover self, family members, business partners, employees, contractors & your assets.

Does Passenger Liability insurance cover me, my family members, business partners, Crew members & my assets in the aircraft?

No, you need to buy separate insurance for them. However, if they are travelling as passengers (proof of passenger needs to be submitted viz. Boarding pass) of the aircraft then they are insured under Passenger Liability insurance.

Will my Hull insurance policy continue if the Pilot named in the Hull Insurance Policy resigns and a new pilot is appointed to operate the aircraft?

No, it will not continue. You must inform the insurance company about the change in the name of the pilot. However, there is another option available - buy 'Open Pilot Warranty' / get 'Open Pilot clause' inserted in the insurance policy. If this clause is inserted, then you need not update the insurance company about the change in the name of the Pilot.

Can the exclusions mentioned in the insurance policy be covered by me?

Yes, some of the exclusions in Insurance policy can be covered if your insurer agrees to cover them. Also note that you need to pay additional premium for the same.

What are the common exclusions in Hull All Risk Insurance?

The exclusions vary from insurer to insurer. Some of the common exclusions inserted by most of the insurance companies are : Wear & Tear; illegal use of an aircraft; usage of any aircraft for purposes that have not be declared /described in the policy; aircraft being operated outside stipulated Geographical boundaries; Terrorism, Hijacking, malicious damage, Strikes, Riots, civil commotions ,labor disturbances; Politics ;act of sabotage; Confiscation etc.by order of Government/public/local authority; wrongful exercise of control of the aircraft /crew in flight without the consent of insured War & Nuclear Risks; mechanical or electrical breakdown; failure of equipments, components or accessories; damage due to wear & tear, damage due to noise or vibration including sonic boom; flight of aircraft outside the geographical limits mentioned in the policy; usage of aircraft for purposes other than stated in the policy; illegal usage of an aircraft; aircraft being piloted by any person other than stated in the policy; aircraft landing on unlicenced area unless due to force majeure etc. loss due to War, Strikes, riots & civil commotions; mechanical breakdown. Some of these exclusions can be purchased by buying insurances like Hull War Risk Insurance.

Will my Liabilities also covered if I buy Hull All Risk Insurance?

No, Hull All Risk insurance does not provide liability cover. You need to buy/ask for a Hull Liability insurance cover. However, this insurance is available as a separate section in the Hull insurance. Those who explicitly ask for this section are only provided this cover, else this sections gets deleted from the Hull Insurance policy.

What is Hull Ferry Insurance?

Hull Ferry Insurance refers to the insurance of the aircraft while in transit from warehouse to the named destination. The coverage's available are same as those available for Hull All Risk Insurance. The insurance is subject to Policy terms , conditions and exclusions.

What is Cargo Ferry All Risk Insurance?

It is insurance of Spares/Equipment/Goods in Transit. Insurance of goods commences from the time the goods leave the warehouse at the place named in the policy and continues during ordinary course of transit and terminates at the destination named in the policy or on expiry of specified number of days (generally 60) after discharge from the warehouse -whichever is earlier. War and kindered perils, Strikes;riots;lock-out;civil commotions and terrorism etc. are generally excluded but can be taken as an additional cover. The insurance is subject to Policy terms , conditions and exclusions.

What is Cargo Ferry Specified Risk Insurance?

It is insurance of Spares/Equipment/Goods in Transit. This insurance is less expensive, since it covers lesser risks than Ferry All Risk Insurance. The insurance is subject to Policy terms, conditions and exclusions.

Can Short period insurance be granted for Aircraft Hull & Marine Hull?

Yes, you can buy short term insurance.

What is an Open Policy?

Open Policy is Issued in Marine Insurance. It is also known as a Floating Policy. A substantial amount of insurance is issued to cover shipments or sendings during a particualr period of time. A Declaration has to be issued for every shipment that goes and the sum insured is reduced accordingly. A Certificate of Insurance is issued on receipt of each declaration. They are generally issued to cover inland consignments.

What is an Open Cover?

Open Cover is Issued in Marine Insurance. It is useful for large export and imports where regular shimpents are done. It saves the inconvinience of obtaining insurance cover separately for each and every shipment. An open cover describes the cargo, voyage and cover in general terms and automatically takes care of the shipments falling in its scope. A specific policy or Certificate of insurance has to be issued against each declaration.

What all are the shipping documents required by the banker when making an advance against a shipment of Goods?

Documents required by the banker are : (1) Invoice clearly mentioning the terms of sale eg. FOB, C &F, CIF etc. (2)Bill of Lading. (3)Bill of Exchange. (4) Marine Insurance Policy indicating that the goods are insured against loss or damage by marine perils with approved insurers. (5) Other documents which may be necessary in respect of particular transactions eg. Certificate of Origin, Consular invoice etc.

What are the insurance options available in Export & Import in Marine Insurance ?

Options/Coverage's for Export & Import in Marine insurance are : (1)Institute Cargo Clause (A) (2)Institute Cargo Clause (B)(3)Institute Cargo Clause (C). All are subject to policy terms, conditions, warranties & exclusions. Some extension covers are also available in these policies.

Does the Certificate of insurance issued in an Open policy neeed to be stamped?

No. Stamping is done on the Open policy, hence no need for stamping the Certificate of insurance.

Does the Specific policy / Certificate of insurance issued in an Open Cover neeed to be stamped?

Yes. Stamping has to be done on the Certificate of insurance, since Open Cover is not stamped.

What all agreements/contracts should I disclose to my insurance company & why?

All contracts/agreements containing insurance and/or hold harmless indemnification clauses must be disclosed because if the insurance related stipulations fall outside the scope of your coverage, then your insurance can become void or limit your coverage. Hence, you must always take insurance company into confidence, while entering any such agreements/contracts, so that these agreement can be reviewed from insurance perspective.

What if I provide only primary information ie. Age of the aircraft, weight, sum insured, registration mark details to buy Hull insurance?

If you do not submit complete information annually as per the Proposal form, your aircraft might get insured but at the following costs: (1)Higher premium - This is because, the underwriters /reinsurer/insurance company will not have sufficient information about studying the Risk involved in insuring the aircraft, hence, they will quote at a higher risk rate. (2)Greater exclusions - Since, the underwriters/reinsurer/insurance company will have no clues of factors to be excluded, they will play safe and insert greater number of exclusions in the insurance cover. (3)Your aircraft might not be completely insured, since, you have not disclosed the complete lists of risks involved. Non disclosure of risks/facts give the insurance company the right to deny claims.

Why should I disclose the information about agreements/contracts entered by me while getting my Aircraft insured?

Disclosure of agreement info is important, because most of the Hull Insurance policies insert a condition/exclusion that any hold harmless agreements, loss payees & other contractual agreements liability assumed by the Insured by agreement under any contract will not be covered, unless such liability would have attached to the Insured even in the absence of such agreement. Hence, if you have entered any contracts related to insurance and/or hold harmless indemnification clause, you must disclose the same to the insurance company. If this is not done, the insurance company will exclude such agreements and the assumed Risk will be yours. Hence, ensure to make full disclosure of any insurance and/or hold harmless indemnification clause entered by you.

What is Warranty and what role does it play in an Insurance Policy?

Warranty is a promise by the assured that the risk disclosed and declared by him while taking the insurance will remain the same throughout the duration of the policy. It should be complied with, as otherwise the insurer may avoid all liability from the date of breach. Any change in risks must be immediately informed to the insurer so that the policy does not get void if the loss occurs due to change in/non disclosure of Risk/non-adherence to agreed clauses.

I have a fleet of 05 aircrafts but their insurance dates vary. This consumes lot of my precious time for undergoing the same process repeatedly. Is there any way where I can save time by clubbing all these insurances into a single policy?

Yes, you can do so at the time of renewal & while buying a fresh insurance policy. If you are aware that you will have more aircrafts with you in coming days, then ask for Multiple Aircraft clause to be inserted in the insurance policy. This clause can be inserted in the middle of the insurance,but it might turn out to more expensive in the mid - term & also remember, the insurer must agree for this.

Can multiple aircrafts of different make & type be insured under the same insurance policy?

Yes, if the insurance company agrees to do so.

Can I get multiple aircrafts insured under the same insurance policy?

Yes, you can. As a practice, aircrafts of same make & model are clubbed in the single policy. However, if the insurer agrees, Aircrafts of Different make & models can also be added in the same insurance.

What all coverage's should I buy for covering my Risks arising due to operating a non-owned aircraft?

It depends on the agreement signed with the owner of the aircraft. However, you must ensure that you are covered for your liabilities towards the Aircraft, passengers, 03 parties, crew members, pilots and any other contractual liabilities. Some of the common coverage's generally purchased are : (1)Hull All Risk Insurance. (2) Hull War Risk Insurance. (3)Hull Passenger & Baggage Liability Insurance. (4)Hull 03 Party Liability insurance. (5)Pilot's Loss of Licence. (6)Personal Accident Insurance. (7)Workmen's Compensation Liability insurance. (8)Cargo Liability insurance, for those who render cargo services. (6)Other insurances depending on the agreements entered by you with the owner of the aircraft.

Who all can be categorised as non-owners of an aircraft?

Non - owners of an aircraft can be categorised as : (1) Those who only have Financial interest in an aircraft eg. Financers, Aircraft Traders (2) Those who operate the aircraft eg. Ferry Flight Operators, Contract Pilots, Certified Flight Instructors, Aircraft taken by Corporates/ Individuals on Lease/Hire etc.

Who are Non-Owned Aircraft Traders in terms of Aviation Insurance?

Non-Owned Aircraft traders are those who have temporary possession of aircrafts for trading purposes i.e. buying & selling of aircrafts .

We don't want the insurer to use the Subrogation rights to our Subsidiaries, Pilots and customers. Please advise?

Suggest, you ask for Waiver of Subrogation endorsement in the insurance policy specifying the parties against whom you want this Waiver.

My aircraft has accessories attached to it. Should I buy a separate insurance policy to get them insured?

No, disclose the value of accessories at the time of buying insurance. Any accessory that is already attached to an aircraft forms a part of Hull Value(aircraft value).

If I have purchased Hull All Risk insurance, can I fly my aircraft anywhere in the world?

No, you cannot fly your aircraft outside the Georgraphical limits mentioned in the insurance policy. If you fly the aircraft outside the Geographical limits, the insurance cover terminates automatically.

What all coverage's should I buy for covering my Risks arising due to ownership of an aircraft?

Some of the Most important coverage's the owner of an aircraft must have are : (1) Hull All Risk Insurance. (2) Hull War Risk Insurance. (3)Hull Passenger & Baggage Liability Insurance. (4) Hull 03 Party Liability insurance. (5)Pilot's Loss of Licence. (6)Personal Accident Insurance. (7)Workmen's Compensation Liability insurance. (8)Freight Liability insurance, for those who render cargo services. (9)Air Mail Liability Insurance - for those who render. Please note, there are several add-on features available in these products which can be purchased as per the business requirement. Some of the exclusions in these insurances can be purchased by paying additional premium.

Is it mandatory for the insurer to provide all the insurance coverage's asked in the Proposal form?

No. The insurer has the right to refuse some or all the coverage's. However, you can ask the reason for refusal.

I have provided the previous Hull insurance policy copy for the renewal of the Hull Insurance. Is there anything else that should ideally be submitted to get the best quote; coverage?

Yes. Documents/information to be submitted at the time of renewal of Hull Insurance are : (1)Fully completed proposal form. (2)Details of agreements entered related to the aircraft which might lead to contractual legal liability. (3)Copy of previous insurance. (4)Details of any risks that have got attached to the aircraft eg. Sectors of flight of aircraft-there is a possibility that you might now be flying the aircraft in an area which has higher risks.

IIs submission of the copy of previous insurance sufficient to buy renewal insurance of my aircraft ?

No. This is not the right way of buying renewal insurance due to the following reasons : (1) Risks might change - if this happens, and if the insurer is not informed about the same, then in case of loss due to undisclosed risk , the insurer has the right to refuse claim. (2)Insurance clauses & guidelines may change - The coverage that was earlier excluded by the insurance company, might be available at the time of renewal. Hence, you might end up loosing getting more risks covered. (3) List of Additional Insured might change.

At what value should an aircraft be insured?

Aircraft/Hull insurance can be purchased on 'Agreed Value' or 'Market Value' basis. Most of the times insurance is bought of Agreed Value only because (1) buying insurance on Replacement value is more expensive (2) Most of the insurance companies avoid issuing insurance on Replacement value.

How do I arrive at the correct Market value of my aircraft?

To arrive at the correct value of the aircraft you must take help of a Professional. Aircraft sum insured can be decided based on the (1) Current purchase price of same make & model (including Duties & taxes) PLUS (2) Current purchase price of the accessories attached to the aircraft(including duties & taxes). Suggest, don't over insure your aircraft because in case of high sum insured the insurance company might prefer repairing the aircraft even when there a major damage, leaving you with a significant damage history. On the other hand, if you under-insure, the insurance company might elect to pay you Total loss & sell the salvage-you would loose ending paying higher amount to buy a new aircraft of same make and model. Hence, it is important to get the valuation done from the professionals or get the idea of Current value from the manufacturer of the aircraft.

What all sources are available for evaluating the market value of my aircraft?

You can get your aircraft valuation done from : (1) Surveyor (2) Manufacturer of an aircraft /accessories.(3)Any Organization authorised for this work.

Can I make amendments in the policy?

Yes you can, provided the original insurance policy has no clause which stops you from making amendments. Also, ensure to take a written confirmation from the insurer for the same. Please note that in insurance no verbal communications are accepted at the time of claim.

What all information should be shared with the insurer after the insurance policy has been purchased?

The insurer must be informed about :(1) Any change in risk eg.Change of Hangar construction, change of pilot, change in usage of aircraft etc. (2) Change in name of the insured or address etc. (3) Variation in sum insured (4) Change in insurable interest eg. Sale, mortgage. (5) Extension of insurance to cover additional perils. (6) Cancellation of insurance. (7) Change in Geographical areas. (8 )Another other changes.

What is Combined Single Limit/Smooth Limit?

Combined Single Limit /Smooth Limit also known as CSL/Single Limit is applicable in Liability insurance. Just like a floater policy, the insurance amount can be claimed for liabilities arising towards human life or public property damage or all. This single limit can be claimed under any head i.e. to pay Bodily Injury/Human Life claims or Property Damage claims or both. Please note the insurance company is liable to pay claims up to the single limit purchased by you eg. if you have purchased insurance for $10000/- and there is a claim for $ 8000/- towards public property damage & $3000/- towards Bodily injury. The insurer will pay your liability for $10000/-. However, Balance $1000/- liability for which you were not insured will be borne by you.

What is Split/Separate Limit? purchased?

Split/Separate limit is opposite to Combined Single Limit. This is another option available to buy liability limits in Liability insurance but more expensive as compared to Combined Single Limit cover. The Liability insurance Limit is split between (1) Bodily injury(Injury to Human Life). (2) Property Damage(Damage to property of other people). Also,the Bodily injury section, mentions the Limit for (a) Amount that can be claimed on each accident. (b) Amount that can be claimed towards injury to each person. eg. You buy split limit in Liability insurance with your insurance limit as follows : Bodily injury limit of $ 10000/- per person ; Total limit of $ 50000/- per accident/for all injuries and $ 5000/- for property damage in one accident. This means the maximum amount that can be claimed is as follows : (1) towards each person's bodily injury is $ 10000/- (2)$ 50000/- for all Bodily injuries (3) $ 7500/- for damage to Public Property.

What is sub-limit?

In insurance, usually a Combined single limit of coverage is applicable to bodily injury & property damage claims. When a reduced amount of coverage from the single limit is available for paying claims resulting from bodily injury, then it is called sub-limit. This is important for the insurer to advise you the Liability cover which you are required to buy.

What is the difference between Combined Single Limit and Separate Limit?

In Aviation Liability Insurance Combined Single Limit and Split Limit are 02 options available in deciding the amount that can be claimed under each category of Liability insurance i.e.(a) Bodily Injury (injury to Human Life). (b) Property Damage (damage to property owned by others). Some of the differences between them are : (1) Combined Single Limit has a single amount that can be claimed under any or both heads ie. Bodily injury & Property damage whereas Split limit has separate limits (for Bodily injury & Property Damage) applicable to the policy. (2) Combined Single limit policy is less expensive as compared to Split limit policy. (3) In Combined Single limit you have the flexibility to claim the money towards Bodily injury or property damage or both Whereas in Split limit the amount that can be claimed under the particular head is as per the limit mentioned under that particular head.

What is Liability Insurance?

Liability insurance indemnifies the insured for claims that may arise for damages caused to others viz. Passengers, public life, public property, Cargo, Passenger baggage, employees etc. because of the insured's operations/activities.

Who All should buy Liability insurance?

Liability Insurance must be purchased by those, whose assets or services or activities might harm others financially in form of Bodily injury - injury to human life or Property Damage - damage to property owned by others. Broad Categories of Liability Insurance seekers are : (1) Manufacturers. (2) Service Providers. (3)Operators. (4) Professionals. (5) Employers.

Is it compulsory to buy 03rd Party Liability insurance ?

Most of the countries have made it compulsory for corporates/individuals to buy this insurance, if they are into business of handling hazardous goods/render hazardous services. 03rd party Liability insurance has 02 types of coverage's namely : (1)Bodily injury - Injury to human life. (2)Property Damage - Damage to property owned by others/public property.

What is Hull - 03 Party Liability Insurance?

Hull - 03rd party liability insurance is a liability insurance product available for the owners/operators of an aircraft. It indemnifies the insured for the compensation that might have to be paid towards injury to human life / public property by the aircraft or any person or any object falling there from. This insurance does not cover(1)Liabilities or claims payable to the owners/employees/crew members/family members/contractors/sub-contractors/partners while performing their duties or acting in the course of employment are not covered in this insurance. (2)Liabilities to Passenger's.

What are the Liability insurances available for Professionals?

Liability insurances available for Aviation Professionals : (1)Pilot's Liability Insurance. (2)Certified Flying Instructor's Liability Insurance. (3)Crew Member's Liability Insurance. (4)Engineer's Liability Insurance. (5)Liability to aircraft loss must be also be purchased if your work requires you to have this cover.

What are the Liability insurances available for Employer's/Contractor's/Service Providers for their Employees/Crew/Pilots/Contract Employees?

Some of the insurances available for Employer's/Contractor's/Service Providers can cover liabilities towards their Employees/Crew/Pilots/Contract Employees by buying : (1) Loss of Licence Insurance. (2) Personal Accident Insurance. (3)Employer's Liability Insurance/Workmen's Compensation Insurance. (4)Ferry- Loss of Licence Insurance. (5)Ferry-Personal Accident Insurance. (6)Employee Mediclaim Insurance. (7) Director's & Officer's Liability Insurance of Aircraft.

What are the Liability insurances available for Manufacturer's of Aircrafts/Spare Parts/ Equipments?

Manufacturers of Aircrafts/Spare Parts/Equipments need liability insurance to cover their liabilities which may arise at different stages of productions i.e. under manufacturing, ready for sale, demo's & after sale liabilities. Some of the Liability insurances available are : (1) Poduct Liability insurance. (3) Public Liability Insurance. (4) Ferry 03rd Party Liability Insurance. (5) Ferry-Passenger Liability Insurance. (6) Grounding Liability Insurance. (7) Passenger Liability insurance. (8) Pilot Loss of Licence insurance. (9) Personal Accident Insurance. (9) Work in Progress Insurance. (10)Employer Liability/Workmen Compensation Insurance. (11)Special Contingency insurances depending on the business risk to be covered.

How is the manufacturer of aircraft & aviation components covered from Liability of goods manufactured & sold to the customer?

Manufacturer can buy Product Liability Insurance. It covers his Legal Liability to 3rd Parties for any bodily injury and/or property damage arising out of the defective designing or manufacture of an aircraft product. The loss may arise due to possession, use, consumption or handling of any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the insured, after such goods or products have ceased to be in the possession or under the control of the insured.

What is Product Liability insurance?

Products manufactured and sold to the public in the modern industrial society, if defective may cause death, bodily injury, illness or damage to the property. Product liability insurance protects the insured for claims arising out of accidents during the period of insurance and arising out of any defects in the products insured.

Who all fall in the definition of insured?

The insured includes the directors, officers and employees of the insured whilst acting within the scope of their duties on behalf of the Insured (other than an Individual viz. Company, Partnership firm etc.). Most important point is that they are covered only for liabilities that may arise while they are performing their duties on behalf of the original insured.

What is Warranty and what role does it play in an Insurance Policy?

Warranty is a promise by the assured that the risk disclosed and declared by him while taking the insurance will remain the same throughout the duration of the policy. It should be complied with, as otherwise the insurer may avoid all liability from the date of breach. Any change in risks must be immediately informed to the insurer so that the policy does not get void if the loss occurs due to change in/non disclosure of Risk.

We don't want the insurer to use the Subrogation rights to our Subsidiaries, Pilots and customers. Please advise?

Suggest, you ask for Waiver of Subrogation endorsement in the insurance policy specifying the parties against whom you want this Waiver.

What are the Liability insurances available for owners of aircrafts?

Some of the Liability insurances available for owners of the aircraft are : (1) Hull - 03rd Party Liability Insurance. (2) Passenger Liability Insurance. (3) Ferry - 03rd Party Liability Insurance. (4) Ferry-Passenger Liability insurance. (5) Personal Accident Insurance. (6) Employer Liability /Workmen Compensation Liability insurance. (7) Cargo/Freight Liability insurance. (8) Special Contingency insurances depending on the business risk to be covered. Non-owner's of an aircraft must ensure to buy Liability toward Aircraft Damage as an extended/ additional Liability cover or Hull All Risk insurance cover for non-owned aircrafts operated by them. This is required if they are not Additional insured in the original insurance Certificate/Policy and neither have Waiver of Subrogation against them clause attached to the original insured and so on.

What are the Liability insurances available for Operators of Owned/Non-Owned aircrafts?

Operators of owned &/or non-owned (Leased/Rented) aircrafts can buy following liability insurances: (1) Passenger Liability Insurance. (2) Hull- 03rd Party Liability Insurance. (3)Ferry Passenger Liability Insurance. (4) Ferry 03rd Party Liability Insurance. (5) Cargo /Freight Liability Insurance. (6) Employer Liability insurance. (7) Personal Accident Insurance. (8) Special Contingency & other insurances depending on the business risk to be covered. Operators of Non-owned aircraft must ensure to buy Hull insurance as an extended Liability cover or Hull All Risk insurance cover for non-owned aircrafts.

What are the Liability Insurances available for Service Providers in Aviation? Equipments?

SService Provider's Liability insurance can be tailor-made provided the Insurer agrees to cover the Risk. Some of the insurances available are : (1) Hangar keeper's Liability Insurance (2) Ferry - 03rd Party Liability Insurance (3) Airport Authority's Liability Insurance (4) Refueller's Liability Insurance (5) Security Company's Liability Insurance (6) Training Academy Liability Insurance (7) Flying Club Liability Insurance (8)Aircraft Trader's Liability Insurance (9) Air Traffic Controller's Liability Insurance (10) Ground Handler's Liability Insurance (11)Service Provides, seeing their business need, must ensure to buy Hull insurance as an extended Liability cover or Hull All Risk insurance cover for non-owned aircrafts.

What amount of Liability cover should I buy to cover my risks arising due to operating an aircraft?

There is no definitive method to arrive at the amount of Liability insurance you should purchase. However, you must consider the following points to arrive at the Liability amount : (1) Minimum Liability insurance which you are required to buy as per your country's guidelines. (2) Seating Capacity of the aircraft. (2) Average number of passenger load per flight. You need higher amount of coverage If the number of passenger load per flight is high. (3) Composition of passenger's in the aircraft i.e Employees : Guests. If number of employees carried on the aircraft is high and if you have properly structured Workmen's Compensation Insurance , then you need not buy higher liability cover because Workmen's compensation insurance will be a sole remedy for injuries to employees. On the other hand, if the number of guests carried on the aircraft is high, then you must buy higher liability cover based on the class of customers travelling the aircraft ie. High insurance cover for High Net worth passengers.(4) Value of Assets in the areas over which your aircraft will be flying. (5) Amount that you can reasonably afford. (6) Obtain quotes for alternate limits each year, as there can be a huge variance in rating the Liability.

If I buy Hull 03rd Party Liability insurance, will my liability be covered for both Property Damage(Damage to Public Property) & Bodily injury(Injury to Human Life)?

Yes, you will be covered , if, you have specifically chosen both sections of the insurance. Hull -03rd Party Liability insurance hs 02 sections : (1) Bodily injury(Injury to Human life) Liability cover. (2) Product Damage (Damage to Public Property) Liability cover. You need to specifically ask for both these covers, else you might miss out the complete coverage.

Is there any regulation related the amount of liability that should be purchased by the operator of an aircraft?

Yes. Every country lays down the liability limit which must be compulsorily purchased by the owner/operator of an aircraft before flying in /over their country. One must disclose the Weight of the aircraft & country names which it intends to fly. This will enable the insurer to guide you about the minimum liability insurance cover which you need to purchase.

I am an Airport Operator & and have purchased Airport Liability & Airport Premises Liability Insurance. Does this cover my liability for any air meet, air race, air show or any stand used for the accommodation of spectators in connection therewith?

No, this is an exclusion in the normal Airport Owner & Operator and Airport Premises Liability insurance policy. However, this can be covered either by seeking prior approval from the insurance company or buying this as an additional insurance provided your insurer agrees to extend this cover to you.

I am an Airport Operator and have purchased Airport Liability Insurance. Does this cover my liability for arising out of construction of, demolition of or alterations to buildings, runways or installations(other than normal maintenance operations)?

No, it is not covered unless & until previously agreed by the insurer in writing.

Does the Airport Operator Liability cover liability for bodily injury/property damage arising due to supply of food & drinks at the insured airport, after they have ceased to be in possession/control of the Airport Operator?

Yes,but the insurer has the option to delete this cover. Hence, one must read the policy wordings to ensure that this cover is not being deleted by the insurer at the time of issuing the insurance policy.

I am an Airport Operator and have purchased Airport Liability & Aviation Premises Insurance. Does this cover my liability for arising out of construction of, demolition of or alterations to buildings, runways or installations(other than normal maintenance operations)?

No, this is an exclusion in the normal insurance policy. However, this can be covered either by seeking prior approval from the insurance company or buying this as an additional insurance provided your insurer agrees to extend this cover to you.

Is it necessary to buy insurance for my Liability towards damage to Human Life / Public Property?

Yes, buy Third Party Liability Insurance. It indemnifies the insured in respect of damages payable under law for personal injury to human life or damage to their property. Every country lays down Compulsory Liability Limits which need to be complied to, since, in case of unfortunate accident, the public has to be compensated for that amount even if there is no fault of the insured i.e. irrespective of any wrongful act, neglect or default of the owner , relief has to be paid to the injured life/damaged property. Remember, the directors, officers and employees of the insured whilst acting within the scope of their duties on behalf of the Insured are not covered in this insurance. Also, Property Owned, Leased or Rented by the insured is not covered in this insurance.

What is Passenger Liability Insurance?

Passenger Liability insurance is purchased by the operators of owned/non-owned aircrafts to safeguard their liability towards the passengers travelling in their aircraft. Every country has it's own regulations regarding the minimum amount of liability insurance which an aircraft operator must have . This insurance protects the aircraft operator against the liability which may arise due to passenger accident and their baggage loss. Cover is valid from the time the passengers are entering the aircraft till the time they alight the aircraft. Hospitalization cover can also be taken as an add on feature for passengers. This insurance covers 02 components: (1) Liability towards Passengers.(2) Liability towards the Passenger's baggage. Your Proposal form must clearly mention the liability limit per passenger; per baggage and the total number of passengers which you intend to be insured for.

If I buy Passenger Liability insurance, will my liability for Passenger Baggage automatically covered?

No. This is an optional cover. Hence, you need to explicitly mention whether you want this insurance or not and specify the insurance amount per baggage & total number of baggage's to be covered.

Are the Passengers, their baggage & Cargo on board covered in 3rd Party Liability Insurance?

No, a separate cover has to be taken in Aviation Insurance to cover them.

Is it mandatory for the insurer to provide all the insurance coverage's asked in the Proposal form?

No. The insurer reserves the right to refuse some or all the coverage's. However, you can ask the reason for refusal.

What are the Liability insurances available for Operators of Owned/Non-Owned aircrafts?

Operators of owned &/or non-owned (Leased/Rented) aircrafts can buy following liability insurances: (1)Passenger Liability Insurance. (2)Hull- 03rd Party Liability Insurance. (3)Ferry Passenger Liability Insurance. (4)Ferry 03rd Party Liability Insurance. (5)Cargo /Freight Liability Insurance. (6)Employer Liability /Workmen's Compensation insurance. (7)Other insurances depending on the business risk to be covered. Operators of Non-owned aircraft must ensure to buy Hull insurance as an extended Liability cover or Hull All Risk insurance cover for non-owned aircrafts.

What are the Liability Insurances available for Service Providers in Aviation?

Service Provider's Liability insurance can be tailor-made provided the Insurer agrees to cover the Risk. Some of the standard insurances available are : (1) Hangar keeper's Liability Insurance. (2) Ferry - 03rd Party Liability Insurance. (3) Airport Owners & Operators Liability Insurance. (4) Refueller's Liability Insurance. (5) Security Company's Liability Insurance. (6) Training Academy Liability Insurance. (8) Aircraft Trader's Liability Insurance. (9) Air Traffic Controller's Liability Insurance. (10) Ground Handler's Liability Insurance. (11) Service Provides, seeing their business need, must ensure to buy insurance for their Liability towards Aircrafts in their Care, Custody & Control.

What amount of Liability cover should I buy to cover my risks arising due to operating an aircraft?

There is no definitive method to arrive at the amount of Liability insurance you should purchase. However, you must consider the following points to arrive at the Liability amount : (1)Minimum Liability insurance which you are required to buy as per your country's guidelines. (2)Seating Capacity of the aircraft. (3)Average number of passenger load per flight. You need higher amount of coverage if the number of passenger load per flight is high. (3)Composition of passenger's in the aircraft i.e Employees : Guests. If number of employees carried on the aircraft is high and if you have properly structured Workmen's Compensation Insurance , then you need not buy higher liability cover because Workmen's compensation insurance will be a sole remedy for injuries to employees. On the other hand, if the number of guests carried on the aircraft is high, then you must buy higher liability cover based on the class of customers travelling the aircraft ie. High insurance cover for High Net worth passengers. (4)Value of Assets in the areas over which your aircraft will be flying. (5)Amount that you can reasonably afford. (6)Obtain quotes for alternate limits each year, as there can be a huge variance in rating the Liability.

If I buy Hull 03rd Party Liability insurance, will my liability be covered for both Property Damage(Damage to Public Property) & Bodily injury(Injury to Human Life)?

Yes, you will be covered , if, you have specifically chosen both sections of the insurance. Hull -03rd Party Liability insurance hs 02 sections : (1) Bodily injury(Injury to Human life) Liability cover. (2) Product Damage (Damage to Public Property) Liability cover. You need to specifically ask for both these covers, else you might miss out the complete coverage.

Is there any regulation related the amount of liability that should be purchased by the operator of an aircraft?

Yes. Every country lays down the liability limit which must be compulsorily purchased by the owner/operator of an aircraft before flying in /over their country. One must disclose the Weight of the aircraft & country names in/over which you intend to fly. This will enable the insurer to guide you about the minimum liability insurance cover which you need to purchase.

I am an Airport Operator & and have purchased Airport Operator & Owner Liability and Airport Premises Liability Insurance. Does this cover my liability for any air meet, air race, air show or any stand used for the accommodation of spectators in connection therewith?

No, this is an exclusion in the normal Airport Operator & Owner Liability and Airport Premises Liability insurance policy. However, this can be covered either by seeking prior approval from the insurance company or buying this as an additional insurance provided your insurer agrees to extend this cover to you.

I am an Airport Operator and have purchased Airport Owner & Operator Liability Insurance. Does this cover my liability for arising out of construction of, demolition of or alterations to buildings, runways or installations(other than normal maintenance operations)?

No, it is not covered unless & until previously agreed by the insurer in writing.

I am an Airport Operator and have purchased Airport Liability & Aviation Premises Insurance. Does this cover my liability for arising out of construction of, demolition of or alterations to buildings, runways or installations(other than normal maintenance operations)?

No, this is an exclusion in the normal insurance policy. However, this can be covered either by seeking prior approval from the insurance company or buying this as an additional insurance provided your insurer agrees to extend this cover to you.

Does the Airport Owner & Operator Liability cover the liability for bodily injury arising due to supply of food & drinks at the insured airport, after they have ceased to be in his possession/control?

Yes, but the insurer reserves the right not to extend this cover. Hence, you must read the policy wordings and ensure that this cover is not being deleted by the insurer at the time of issuing the insurance policy. Please specifically mention your requirement in the Proposal/Requirement form.

Is it necessary to buy insurance for my Liability towards damage to Human Life / Public Property?

Yes, buy Third Party Liability Insurance. It indemnifies the insured in respect of damages payable under law for personal injury to human life or damage to their property. Every country lays down Compulsory Liability Insurance Limits which need to be complied with, since, in case of unfortunate accident,the public has to be compensated for that amount even if there is no fault of the insured i.e. irrespective of any wrongful act, neglect or default of the owner , relief has to be paid to the injured life/damaged property. Remember, the directors, officers and employees of the insured whilst acting within the scope of their duties on behalf of the Insured are not covered in this insurance. Also, Property Owned, Leased or Rented by the insured is not covered in this insurance.

Am I required to Inform the insurance company of change in the name of the pilot operating the aircraft?

Yes, it is mandatory to inform the change in name of the pilot's of the aircraft else the insurance company has the right to refuse claims. However, this is not necessary if you have purchased Open Pilot Warranty, unless & until the policy conditions mandate you to inform the change in pilot name.

Can I make amendments in the policy?

Yes you can , provided the original insurance policy has no clause which stops you from making amendments. Also, ensure to take a written confirmation from the insurer. Please note that in insurance no verbal communications are accepted at the time of claim.

Can the insurer cancel my Loss of Licence insurance cover before the expiry of the insurance period?

Yes, the insurer has the right to cancel the insurance cover by giving few days notice. Please refer the policy to know the number of days in which the insurance can be cancelled by the insurer.

Can I cancel my Loss of Licence insurance?

Yes, you can cancel your Loss of Licence insurance any time by giving notice as per the notice period mentioned in the insurance policy. The insurer will deduct the premium for the period for which you have availed the insurance cover (refer your insurance policy for the applicable cancellation rate).

What is the notice period within which I must inform the insurer about my accident or illness?

Time period within which you are required to inform the insurance company varies from insurer to insurer(refer your policy for details). If you do not inform your insurer within the stipulated time period, then the insurer has the right to deny your claim.

I am a Contract Pilot with a Corporate. I met with an accident while flying the aircraft. Can I claim compensation as a passenger from the Organization?

Yes, you being a contract employee can claim compensation as a passenger from the organization. This is a big reason why underwriters prefer the regular use of employee pilots in the insurance policy. However, if you have signed any hold harmless agreement/any such agreement with the Corporate wherein you have agreed not to hold the Corporate Liable for any damage /injury caused to you, then you cannot file any accidental claims against it.

What claim information need to be submitted for Loss of Licence?

Claim information required by the insurance company might vary from insurer to insurer. Please refer your insurance policy. However, some of the standard information that you need to provide is : (1) Personal Details of Insured (a) Name. (b) Address. (c) Age. (d) Occupation. (e) Policy /Certificate Number. (f) Policy Period. (2)Nature of Illness/Injury. (3) Contact details of medical attendant whom you 1st consulted for injury/illness. (4) Contact details of any other medical consultation taken. (5) In case of temporary total disablement, date by which you are likely to resume your business/occupation. (6) Your contact details, where & when you can be visited. (7) Details of last medical attention received prior to current injury/illness. (8) Contact & policy details of any other similar insurance. (9) Total Claim amount with break-up of the claim filed. (10) Your Licence details (a) Number & type (b) Issuance date. (c) Expiry date. (d) Details of the Licence issuing authority. (e) Date of last medical examination for licence. (11) Details of any restriction or qualification on licence for medical or any other reason. (12) Registration number and name of Aircrew Association of which you are a member. (13) Current Annual Remuneration with breakup. (14) Accident details : (a) Date. (b) Place.(c) Time. (d) Details of how the accident happened. (e) if accident occurred in the aircraft,then type & identification mark thereof. (f) If the accident happened while on board,then advise your work on the aircraft at that time. (g) whether on board as a passenger or a crew. (f) Details of any health /physical defects /infinity at the time of accident. (g) Employer details if accident occurred while flying as an aircrew. (13) Illness details : (a) Start date. (b) Any prior sufferance from illness claim filed. (c) Previous claim details, if any. (d) Any, unusual circumstances connected with your occupation /mode of life that would render you more than usually susceptible to disclose.

What documents I must submit while filing my claim for Loss of Licence?

Claim documents that you must submit to avoid delay in claims are : (1) Claim form. (2) Licence copy. (3) Medical certificate from the attendant who 1st attended you for your illness/injury. (4) Aircrew Association Membership copy. (5) Current Salary Certificate. (6)Letter from employer certifying hospitalization & intimation to Aviation regulator might also be required to be submitted. (7) Any other information as required by the insurance company.

Is there any deadline within which I need to inform the insurance company about claim?

Yes, as a normal practice the insured must inform the insurance company in writing within 03 calendar months of accident/illness/disability. However, the duration might vary from insurer to insurer(please, refer you insurance policy terms & conditions.) If the insurer is not informed about the same within the stipulated time mentioned in the insurance policy, they reserve the right to deny claims.

What is Loss of Licence insurance?

Loss of Licence insurance is a highly specialized product for those holding valid licences in the Aviation Sector namely Pilots, Flight Engineers, Student Pilots, Student Flight Engineers and so on. It insures the person for financial loss caused because of loosing their licence on temporary/permanent basis (making it difficult for the insured to attend the occupation on temporary /permanent basis) arising due to an accident or illness (pre-existing illness not covered, unless specifically covered by the insurer). This insurance cover may allow the insured to file claims for loosing licence during or after the period of insurance , provided the insurance product has this feature attached to it.

Who all can buy Loss of Licence insurance?

Loss of Licence can be purchased by : Employers or Unions or Individuals (including pilots of Balloons, Gliders, Microlight) for those holding valid Licence. This insurance can be purchased by/for (1) Pilots. (2) Flight Instructors/Navigators. (3) Air Traffic Controllers. (4) Flight Engineers. (5) Student Flight Engineers. (6) Student Flight Instructors/Navigators. (7) Flight Radio Telephone Operators. (8) Others as accepted by the insurance company. Please note the insurance company has the discretion whether or not to provide the cover.

Do all Loss of Licence products offer the same insurance cover?

No, it might vary from insurer to insurer. Please note that common features with variance in % of cover might be seen in the insurance product. Hence, please study and compare the product features before buying the insurance cover.

What all coverage's can be purchased in Loss of Licence insurance?

Some of the coverage's that can be available in Loss of Licence insurance are : (A) With specified diseases excluded from the cover : (1) Loss of Licence due to Permanent Total Disablement - @ 100% of Sum Insured (2) Temporary Loss of Licence due to Temporary Total Disablement- @ 2% per month of Sum Insured up to maximum 12 months. (B) With specified diseases covered : (1) Loss of Licence due to Permanent Total Disablement - @ 18% of Sum Insured (2) Temporary Loss of Licence due to Temporary Total Disablement - @ 1.5 % per month of Sum Insured up to maximum 12months .The specified diseases that might be excluded/covered in Loss of Licence are : Epilepsy , Psychosis, Psychoneurosis or any other disease as mentioned in the insurance policy. (C) Legal Expenses - Specified amount as stated in the policy for Expenses that the insured might incur to attend the court of enquiry of legal or other proceedings related to the claim filed by the insured. (D) Illness resulting from the influence of alcohol, drugs or narcotics. (E)Undiagnosed illness or illness incapable of being diagnosed. Please note that the aforesaid % /coverage's are the ones that are commonly available in the market, however they might vary from insurer to insurer.

I have a Personal Accident Insurance from my company. Should I buy my Personal Accident Insurance & why?

Yes, suggest you must buy personal accident insurance because you company's personal accident insurance is valid till the time you are an employee of the organization. The moment you leave your organization insurance cover automatically ceases to exist. The reason for you buying Personal Accident insurance are : (1) Your office might buy insurance for a smaller amount. Do you think that your office insurance amount is a sufficient coverage for your family. (2) Your office insurance might be valid only during your office duty hours. Hence, you being un-insured for complete 24hours. (3) Most of insurance policies strictly do not cover pre-existing injuries. (4) The normal retirement age is 60 years. Hence, it might become difficult for you to buy insurance after your retirement- you might be left un-insured or under-insured. (5) There might be a time gap between your old and new employer. Any injury during this period will leave you un-insured.

What all should I check while buying Loss of Licence insurance ?

While buying Loss of Licence insurance you must study the features,exclusions,warranty, Geographical coverage, maximum age up to which the cover will be available, terms & conditions etc. Some of the standard features which might be available in this insurance are : (A)Permanent Total Disablement. (B)Temporary Total Disablement. (C) Legal Expenses,Illness resulting from the influence of alcohol, drugs or narcotics. (D)Undiagnosed illness or illness incapable of being diagnosed. (E) Please check : (1) The amount of cover available under each feature. (2) Number of days after which the insurance will trigger for claims arising due to incapacity. (3)Total Number of days in aggregate for which you can claim for Loss of Licence. (4)Whether pre-existing diseases are covered. (5) Number of days within which you are required to inform the insurance company about claim. (6) Period within which you can file claim after the insurance has expired. (6) If you have purchased insurance under Group /membership scheme, then does the insurance policy allow you to convert this to an individual policy or not in case you walk out of the Group/Membership.

What is the amount of insurance cover available for trainee pilots/engineers?

Trainee pilots/engineers have a lesser amount of insurance coverage available for them as compared to employed pilots/engineers. However, the available insurance amount varies from insurer to insurer.

I already have Loss of Licence insurance from my company. Should I buy my personal Loss of Licence & why?

Yes, you must buy your personal Loss of Licence insurance because once you leave the job, your coverage will get automatically terminated & there is possibility that there might be some gap between old & new employment or may be you start working independently and so on, thus leading to nil cover during this time. In the meantime, if you might either be left uncovered or contact some disease or illness due to which you might not be able to buy a new Loss of Licence cover for your own self resulting in nil cover for future.

Can I buy Hull insurance policy without providing the name of the pilot?

Yes, you can provided the insurer agrees to it. Please ensure to get Un-named pilot clause (also called Open pilot clause/Open Pilot Warranty) inserted in the insurance policy.

What are the common exclusions in Loss of Licence insurance?

Some of the exclusions normally applicable in Loss of Licence insurance are : (1) No insurance for Loss of Licence due to any disease contracted within the stipulated days (generally 60days) as mentioned in the insurance policy. (2) Loss of Licence due to Pre-existing disease/injury. (3) Injury due to War, Riot, Strike or Civil Commotion, intentional self injury, injury due to riding or driving in any kind of race (4) Chronic Alcoholism (5)Death of person insured. (5) Similar insurance with any other company other than a Personal Accident Insurance. These are possible exclusions, hence, please refer to exclusions section of your insurance policy to know the exclusions applicable in your insurance.

What are the diseases that might be excluded from the 100% Insurance in case of Loss of Licence?

Specified diseases that might not have 100% Loss of Licence cover are : epilepsy , psychosis, psychoneurosis or any other disease as mentioned in the insurance policy.

Can any of the exclusions of Personal Accident Insurance be purchased by paying additional premium?

Yes, provided the insurance policy allows you to do so.

Is death covered in Loss of Licence insurance?

No, Loss of Licence does not cover death. As the name reflects - it covers your financial loss in case of you loosing your licence temporarily or permanently. If you want to be insured for death, you must buy Personal Accident Insurance &/or Life Insurance. However, there might be a Special Contigency Product that might be available to cover Death but this is a rare product to be found.

What all disclosures are required at the time of buying Loss of Licence Insurance?

You must truly answer the questions asked in the Proposal form. If at the time of claim or at any other time, it is found that there is non-disclosure or false disclosure of facts, the insurance company reserves the right to deny your claim or/policy shall cease to exist. Some of the important disclosures are : (1) Details of Pre-existing diseases, if any. (2) Any other insurance insuring similar risks. (3) Details of injury prior to applying for the Loss of Licence insurance. (4) Immediate written intimation to the insurer of any change in information/state of health between date of submitting the proposal form and date of inception of the insurance policy. (5) Truly answer the questions asked in the Proposal form.

Can a Pilot be sued?

Yes, a Pilot can be sued for an aircraft accident and a lawsuit being filed for his/her negligence. If the Pilot is an employee of the policy holder, he can reduce his liability by requesting his employer to get his name added to the insurance as an additional insured or have Waiver of Subrogation clause attached in the insurance of an aircraft that he is flying.

What is an Indemnity Bond/Letter of Undertaking in Loss of Licence?

An indemnity bond in Loss of Licence is an undertaking by the insured to refund the claim to the insurer, if he recovers from Permanent Total Disablement or if his licence is re-instated.

What is Open Pilot Warranty/clause?

This clause also known as 'Open Pilot Warranty' & 'Un-named pilot clause'. In normal insurance policy, the insured is required to inform the insurance company about the change in the name of the pilot of the insured aircraft. If the insurer is not informed about the pilot change then the insurance policy gets void and insurance company gets the right to refuse claims. By getting 'Open Pilot Warranty' clause inserted, the insured gets the liberty of not informing the insurance company about the change in name of pilots. This clause allows both named and un-named pilots to fly the aircraft. The pilot with an experience in terms of minimum Flying hours & having prescribed ratings can fly the insured aircraft without affecting the insurance cover of the aircraft. It lays down the minimum qualification & experience(in terms of hours, ratings etc.) that an un-named pilot must have to be able to fly the insured aircraft.

What is Warranty and what role does it play in an Insurance Policy?

Warranty is a promise by the assured that the risk disclosed and declared by him while taking the insurance will remain the same throughout the duration of the policy. It should be complied with, as otherwise the insurer may avoid all liability from the date of breach. Any change in risks must be immediately informed to the insurer so that the policy does not get void if the loss occurs due to change in/non disclosure of Risk/non-adherence to agreed clauses.

What all documents need to be submitted at the time of buying Loss of Licence insurance?

Documents that you are generally required to be submitted at time of buying Loss of Licence insurance are : (1) Proposal Form. (2) Certificate from the Association of which you are a member. (3) Licence copy (4) Medical Fitness Certificate. (5) Salary/tax Certificate. (6) Age proof. (7) Address proof. (8) Any other document as desired by the insurer.

I am a CFI & own an aircraft which I use for training pilots. What all insurances should I buy?

You must have insurances covering: (1) Insurance for Self - Loss of Licence. (2) Insurance of your aircraft (3) Passenger Liability insurance - to insure the pilots which might be travelling with you just to learn flying, passengers in the aircraft. (3) Liability to 03rd parties. (4) Liabilities as a CFI.

I am a CFI & provide training on a non-owned aircraft. Should I buy liability cover being a CFI?

Yes, you should ideally go in for Liability insurance as a CFI because even if you are a named pilot to render training, your liability towards rendering instructions does not end.

Can I claim for my Loss of Licence insurance after expiry of my insurance cover?

Yes, provided the insurance policy allows you to do so. Most of the insurance companies as a feature in their Loss of Licence cover allow the insured to claim for loosing their licence any time during or after the period of insurance but within the time period as mentioned in the policy eg. policy stating the cover to be valid for 05 years from the date of expiry of insurance.

What is the maximum age till which the Loss of Licence insurance is available?

Loss of Licence insurance cover as a common practice is available up to age 70. However, this might vary from insurer to insurer.

I had purchased Loss of Licence through my Association but now I am no more a member of the Association. Will my Loss of Licence insurance get effected due to my dis-association?

Yes, your Loss of Licence Insurance if purchased due to you being a member of the Assocation will terminate automatically the moment you cease to be the member of such Association. However, there is a possibility that your insurance Policy/Certificate is silent on this Condition. Hence, suggest please refer the policy conditions of your insurance and clarify with your insurer. Please have the communication documented.

I have loss of licence insurance for past 10 years. Why should I look in for a new Loss of Licence insurance?

Loss of Licence insurance is a highly specialized product. The underwriting rules ; coverage's & exclusions are constantly changing with time eg. A medical disease that was excluded earlier might become a coverage with time. Hence, you must explore the possibility of switching over to the latest Loss of Licence cover.