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AIRCRAFT INSURANCE POLICY
POLICY SCHEDULE
Policy Number: {Response}
Item 1. NAME AND ADDRESS OF THE INSURED:
{Response}
Item 2. PERIOD OF INSURANCE:
From: {Response}
To: {Response}
Both days {Response} Local Standard Time at the address of the Insured
Item 3. SCHEDULE OF AIRCRAFT:
Make and Model
Registration Marks
Maximum Number of Passengers
Agreed Value
Risks Covered (Insert Flight, Taxiing, Moored, Ground as applicable)
{Response} {Response} {Response} {Response} {Response}
Additions and Deletions of Aircraft:
All additions, deletions and changes in Aircraft Agreed Values are subject to prior agreement by Insurers.
Item 4. LIMITS:
SECTION 1 – Physical Loss of or Damage to Aircraft:
Agreed Values as specified in Item 3 (4) above
SECTION 2 – Legal Liability to Third Parties (Other than Passengers):
Bodily Injury and Property Damage combined:
{Response} any one Occurrence
SECTION 3 – Legal Liability to Passengers (Including Passenger Baggage and Personal Effects):
Bodily Injury and Property Damage combined:
{Response} each passenger
Property Damage to Passenger Baggage and Personal Effects sub-limited to:
{Response} each passenger
OR
SECTIONS 2 and 3 Combined – Legal Liability to Third Parties and Passengers (Including Passenger Baggage and Personal Effects):
Bodily Injury and Property Damage combined:
{Response} any one Occurrence
Bodily Injury to Passengers sub-limited to:
{Response} each passenger
Property Damage to Passenger Baggage and Personal Effects sub-limited to:
{Response} each passenger
Item 5. DEDUCTIBLES:
SECTION 1:
{Response}
SECTION 2:
{Response}
SECTION 3:
Passenger Baggage and Personal Effects:
{Response}
Item 6. PURPOSE OF USE:
(1) Standard Uses: {Insert Private Pleasure, Business, Commercial or Rental as applicable}
{Response}
(2) Special Uses: {Response}
(3) Special Rental Uses: {Response}
Certain words and phrases used in this Policy have special meanings which can be found in the Definitions below.
DEFINITIONS
Standard Uses means use of Aircraft within Definitions 1 to 4 below other than for Special Uses or Special Rental Uses.
- "Private Pleasure" means use of Aircraft for private and pleasure purposes but NOT for any business or professional purposes nor for hire or reward. Private Pleasure includes continuation training of permitted pilots as named in Item 7. of the Policy Schedule.
- "Business" means the uses specified in Private Pleasure and use of Aircraft for business or professional purposes including use for the transportation of executives, employees, guests of the Insured and their accompanying baggage and cargo but NOT use for hire or reward.
- "Commercial" means the uses specified in Business and use of Aircraft for the carriage by the Insured of passengers, baggage accompanying passengers and cargo for hire or reward.
- "Rental" means rental, lease, charter or hire of Aircraft by the Insured to any person, company or organisation for Private Pleasure and Business uses only, where the operation of the Aircraft is not under the control of the Insured.
Special Uses means use of Aircraft for flight instruction (except continuation training as provided for in Definition 1), aerobatics, hunting, patrol, fire-fighting, the intentional dropping, spraying or release of anything, any form of experimental or competitive flying, and other use involving abnormal hazard. No cover is provided unless details of such use(s) are declared to Insurers and specified in Item 6 (2) of the Policy Schedule.
Special Rental Uses means rental for any other purpose than stated in 4 above. No cover is provided unless details of such use(s) are declared to Insurers and specified in Item 6 (3) of the Policy Schedule.
- "Flight" means from the time the Aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the Aircraft completes its landing run. A rotary-wing aircraft shall be deemed to be in Flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.
- "Taxiing" means movement of the Aircraft under its own power other than in Flight. Taxiing shall not be deemed to cease merely by reason of a temporary halting of the Aircraft.
- "Moored" means while the Aircraft is afloat and made fast to its moorings, or is being launched or hauled up.
- "Ground" means whilst the Aircraft is not in Flight or Taxiing or Moored.
The above definitions 5 to 8 constitute Risks Covered as specified in Item 3 (5) of the Policy Schedule.
- “Aircraft” means the aircraft specified in Item 3 of the Policy Schedule together with the engine(s) and standard instruments and equipment usually installed in or on the aircraft whilst:
(a) installed in or on the aircraft;
(b) temporarily detached from the aircraft;
(c) detached from the aircraft for replacement until the “commencement of the operation of fitting” the replacement item, at which time the replacement item shall be considered part of the aircraft.
“commencement of the operation of fitting” means from the moment the item ceases to be in contact with the ground or the trolley/stand on which it is located when the process of fitting it to the aircraft is commenced.
- “Bodily Injury” means bodily injury, sickness or disease including death at any time resulting therefrom.
- “Property Damage” means physical loss of or damage to or destruction of tangible property, including the resultant loss of use of such property.
- "Occurrence" means an accident or a continued or repeated exposure to conditions occurring during the Period of Insurance, which results in Bodily Injury and/or Property Damage which is neither expected nor intended from the standpoint of the Insured. All liability arising out of such exposure to substantially the same general conditions shall be deemed to arise out of one Occurrence.
- “Overhaul Cost" means the costs of labour and materials which are or would be incurred in overhaul or replacement (whichever is necessary) at the end of the Overhaul Life of the damaged or a similar Unit.
- "Overhaul Life" means the amount of use, or operational and/or calendar time which, according to the aviation authority having relevant jurisdiction over the Aircraft, determines when overhaul or replacement of a Unit is required.
- “Total Loss” means:
(a) physical damage to the Aircraft where in the opinion of Insurers:
(i) the Aircraft is damaged to such an extent that it cannot be repaired; or
(ii) the cost of repairing the Aircraft is estimated to exceed its Agreed Value.
(b) the disappearance of the Aircraft if it cannot be located 30 days after:
(i) the commencement of Flight; or
(ii) the date of the theft report.
- "Unit" means a part or an assembly of parts (including any sub-assemblies) of the Aircraft which has been assigned an Overhaul Life as a part or an assembly. An engine complete with all parts normally attached when removed for the purpose of overhaul or replacement shall constitute a single Unit.
(b) Partial Loss
In the event that Insurers settle a claim other than on the basis of a Total Loss the Insurers will pay the cost of repairing the Aircraft less:
(i) any applicable Deductible specified in Item 5 of the Policy Schedule and/or
(ii) such proportion of the Overhaul Cost of any Unit repaired or replaced as the used time bears to the Overhaul Life of the Unit.
(c) Total Loss
In the event that Insurers settle a claim on the basis of a Total Loss the Insurers will pay the Agreed Value of the Aircraft as specified in Item 3 (4) of the Policy Schedule less any applicable Deductible specified in Item 5 of the Policy Schedule.
(d) Salvage
If the Insurers settle a claim on the basis of a Total Loss, the Aircraft will no longer be insured hereunder, and the Insurers may take the Aircraft together with all documents of record, registration and title thereto as salvage.
(e) No Abandonment
Unless the Insurers elect to take the Aircraft as salvage the Aircraft shall at all times remain the property of the Insured who shall have no right of abandonment to the Insurers.
(f) Theft of the Aircraft
In the event of theft of the Aircraft the Insured shall report details to the police immediately. If the Aircraft is found undamaged before Insurers have paid any claim in relation to such theft, then Insurers will pay the cost of returning it to the Insured's home airport / airfield by the most economical means.
SECTION 2 – LEGAL LIABILITY TO THIRD PARTIES (OTHER THAN PASSENGERS)
1. Coverage
The Insurers agree to pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as compensatory damages for Bodily Injury and/or Property Damage to third parties caused by an Occurrence arising from the use of the Aircraft by the Insured.
The liability of the Insurers under this Section shall not exceed the applicable Limits as specified in Item 4 of the Policy Schedule less any applicable Deductible specified in Item 5 of the Policy Schedule.
2. Exclusions applicable to this Section
This Section does not apply to:
(a) Bodily Injury sustained by any director or employee of the Insured or partner in the Insured's business whilst acting in the course of their employment with or duties for the Insured;
(b) Bodily Injury sustained by any member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft;
(c) Bodily Injury sustained by any passenger whilst entering, on board, or alighting from the Aircraft;
(d) Property Damage to any property belonging to or in the care, custody or control of the Insured;
(e) claims excluded by the attached Noise and Pollution and Other Perils Exclusion Clause AVN46B;
(f) claims excluded by the attached Asbestos Exclusion Clause 2488AGM00003.
SECTION 3 – LEGAL LIABILITY TO PASSENGERS
1. Coverage
The Insurers agree to pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as compensatory damages for:
(a) Bodily Injury to passengers whilst entering, on board, or alighting from the Aircraft caused by an Occurrence and
(b) Property Damage to baggage and personal effects of passengers caused by an Occurrence whilst such baggage and personal effects are in the care, custody or control of the Insured for the purpose of carriage by air.
The liability of the Insurers under this Section shall not exceed the applicable Limits as specified in Item 4 of the Policy Schedule less any applicable Deductible specified in Item 5 of the Policy Schedule.
Provided always that:
(i) before a passenger boards the Aircraft the Insured shall take such measures as are necessary to exclude or limit liability for claims under (a) and (b) above to the extent permitted by law;
(ii) if the measures referred to in proviso (i) above include the issuance of a passenger ticket/baggage check, the same shall be delivered correctly completed to the passenger a reasonable time before the passenger boards the Aircraft.
In the event of failure to comply with proviso (i) or (ii) the liability of the Insurers under this Section shall not exceed the amount of the legal liability, if any, that would have existed had the proviso been complied with.
2. Exclusions applicable to this Section
This Section does not apply to:
(a) Bodily Injury sustained by any director or employee of the Insured or partner in the Insured's business whilst acting in the course of their employment with or duties for the Insured;
(b) Bodily Injury sustained by any member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft;
(c) claims excluded by the attached Asbestos Exclusion Clause 2488AGM00003.
- To claims excluded by the attached War, Hi-Jacking and Other Perils Exclusion Clause (Aviation) AVN48B.
- To claims excluded by the attached Nuclear Risks Exclusion Clause AVN38B.
- To claims excluded by the attached Date Recognition Exclusion Clause AVN2000A.
- To claims excluded by the attached Contracts (Rights of Third Parties) Act 1999 Exclusion Clause AVN72.
- To claims excluded by the attached Sanctions and Embargo Clause AVN111.
CONDITIONS PRECEDENT APPLICABLE TO ALL SECTIONS
It is necessary that the Insured observes and fulfils the following Conditions before the Insurers have any liability to make any payment under this Policy.
- The Insured shall at all times use due diligence and do and concur in doing everything reasonably practicable to avoid or diminish any loss hereon.
- The Insured shall comply with all air navigation and airworthiness orders and requirements issued by any aviation authority having jurisdiction affecting the safe operation of the Aircraft and shall ensure that:
(a) the Aircraft is airworthy at the commencement of each Flight;
(b) all log books and other records in connection with the Aircraft which are required by any official regulations in force from time to time shall be kept up to date and shall be produced to the Insurers or their agents on request;
(c) the employees and agents of the Insured comply with such orders and requirements.
- Notice of any event likely to give rise to a claim under this Policy shall be given to Insurers as soon as possible via the firm named for the purpose specified in Item 11 of the Policy Schedule. In all cases the Insured shall:
(a) furnish full particulars in writing of such event and forward immediately notice of any claim with any letters or documents relating thereto;
(b) give notice of any impending prosecution;
(c) render such further information and assistance as the Insurers may reasonably require;
(d) not act in any way to the detriment or prejudice of the interest of the Insurers.
- The Insured shall not make any admission of liability, payment, offer or promise of payment without the written consent of the Insurers.
GENERAL CONDITIONS APPLICABLE TO ALL SECTIONS
- The coverage afforded under Section 1 of this Policy shall be proportional with any other valid and collectible insurance available to the Insured. The coverage afforded under Sections 2 and 3 of this Policy shall be excess insurance over any other valid and collectible insurance available to the Insured.
- Upon a payment being made under this Policy, the Insurers shall be subrogated to the rights and remedies of the Insured who shall co-operate with and do all things necessary to assist the Insurers to exercise such rights and remedies.
- Should there be any material change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers.
- This Policy may be cancelled by notice in writing. The Insured may give notice at any time. The Insurers shall give 30 days or such other notice, if of longer duration, as is mandated by the law stated in Item 10 of the Policy Schedule.
If the Policy shall be cancelled by the Insured, the Insurers shall be entitled to the proportion of the premium calculated in accordance with the following scale.
1 month on risk - 20% annual premium 2 months on risk - 30% annual premium 3 months on risk - 40% annual premium 4 months on risk - 50% annual premium 5 months on risk - 60% annual premium 6 months on risk - 70% annual premium 7 months on risk - 75% annual premium 8 months on risk - 80% annual premium 9 months on risk - 85% annual premium
Over 9 months equivalent to full annual premium.
If the Policy shall be cancelled by Insurers, they shall be entitled to the premium for the period that this Policy has been in force, calculated pro-rata. Notice of cancellation by the Insurers shall be effective even though the Insurers make no payment or tender of return premium.
There will be no return of premium in respect of any Aircraft on which a loss is paid or is payable under this Policy.
- This Policy shall not be assigned in whole or in part except with the prior written agreement of the Insurers.
- The choice of law and jurisdiction applicable to this Policy is as specified in Item 10 of the Policy Schedule.
- When two or more Aircraft are insured hereunder the terms of this Policy, including the Limits as specified in Item 4 of the Policy Schedule, shall apply separately to each Aircraft unless otherwise specified herein.
- Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the Limits as specified in Item 4 of the Policy Schedule less any applicable Deductible specified in Item 5 of the Policy Schedule.
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 1
WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION)
This Policy does not cover claims caused by:
(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.
(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
(c) Strikes, riots, civil commotions or labour disturbances.
(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.
(e) Any malicious act or act of sabotage.
(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.
(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.
Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).
AVN48B 1.10.
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 2
NUCLEAR RISKS EXCLUSION CLAUSE
- This Policy does not cover:
(i) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss
(ii) any legal liability of whatsoever nature
directly or indirectly caused by or contributed to by or arising from:
(a) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;
(b) the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;
(c) ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.
- It is understood and agreed that such radioactive material or other radioactive source in paragraph 1(b) and (c) above shall not include:
(i) depleted uranium and natural uranium in any form;
(ii) radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose.
- This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which:
(i) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or
(ii) any person or organization is required to maintain financial protection pursuant to legislation in any country; or
(iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.
- Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph 2 shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:
(i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization "Technical Instructions for the Safe Transport of Dangerous Goods by Air", unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 3
NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE
- This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:-
(a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,
(b) pollution and contamination of any kind whatsoever,
(c) electrical and electromagnetic interference,
(d) interference with the use of property;
unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.
- With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend
(a) claims excluded by Paragraph 1 or
(b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 (referred to below as "Combined Claims").
- In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:
(i) damages awarded against the Insured and
(ii) defence fees and expenses incurred by the Insured.
- Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.
AVN46B 1.10.
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 4
DATE RECOGNITION EXCLUSION CLAUSE
This Policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly):
(a) the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time;
(b) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification;
(c) any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from any act, failure to act or decision of the Insured or of any third party related to any such change of year, date or time;
and any provision in this Policy concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded.
AVN2000A 14.03.
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 6
ASBESTOS EXCLUSION CLAUSE
This Policy does not cover any claims of any kind whatsoever directly or indirectly relating to, arising out of or in consequence of:
(1) the actual, alleged or threatened presence of asbestos in any form whatsoever, or any material or product containing, or alleged to contain, asbestos; or
(2) any obligation, request, demand, order, or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, neutralize, protect against or in any other way respond to the actual, alleged or threatened presence of asbestos or any material or product containing, or alleged to contain, asbestos.
However, this exclusion shall not apply to any claim caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.
Notwithstanding any other provisions of this Policy, Insurers will have no duty to investigate, defend or pay defence costs in respect of any claim excluded in whole or in part under paragraphs (1) or (2) hereof.
All other terms and conditions of the policy remain unchanged.
2488AGM
ATTACHMENTS FORMING A PART OF THIS POLICY
ATTACHMENT NUMBER 7
SANCTIONS AND EMBARGO CLAUSE
Notwithstanding anything to the contrary in the Policy the following shall apply:
- If, by virtue of any law or regulation which is applicable to an Insurer at the inception of this Policy or becomes applicable at any time thereafter, providing coverage to the Insured is or would be unlawful because it breaches an embargo or sanction, that Insurer shall provide no coverage and have no liability whatsoever nor provide any defence to the Insured or make any payment of defence costs or provide any form of security on behalf of the Insured, to the extent that it would be in breach of such law or regulation.
- In circumstances where it is lawful for an Insurer to provide coverage under the Policy, but the payment of a valid and otherwise collectable claim may breach an embargo or sanction, then the Insurer will take all reasonable measures to obtain the necessary authorisation to make such payment.
- In the event of any law or regulation becoming applicable during the Policy period which will restrict the ability of an Insurer to provide coverage as specified in paragraph 1, then both the Insured and the Insurer shall have the right to cancel its participation on this Policy in accordance with the laws and regulations applicable to the Policy provided that in respect of cancellation by the Insurer a minimum of 30 days notice in writing be given. In the event of cancellation by either the Insured or the Insurer, the Insurer shall retain the pro rata proportion of the premium for the period that the Policy has been in force. However, in the event that the incurred claims at the effective date of cancellation exceed the earned or pro rata premium (as applicable) due to the Insurer, and in the absence of a more specific provision in the Policy relating to the return of premium, any return premium shall be subject to mutual agreement. Notice of cancellation by the Insurer shall be effective even though the Insurer makes no payment or tender of return premium.
AVN 111 01.10.
