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An overview of an aircraft insurance policy, detailing the exclusions, coverage, and conditions for various types of incidents such as bodily injury, property damage, and hijacking. It also includes provisions for legal liability to passengers, defence and settlement payments, and subrogation rights. The policy also covers nuclear risks under specific conditions.
Typology: Summaries
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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
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:
{Response}
{Response}
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.
Standard Uses means use of Aircraft within Definitions 1 to 4 below other than for Special Uses or Special Rental Uses.
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.
The above definitions 5 to 8 constitute Risks Covered as specified in Item 3 (5) of the Policy Schedule.
(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.
(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.
(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.
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.
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.
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.
(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.
(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.
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 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).
(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.
(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.
(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.
(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;
(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.
(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").
(i) damages awarded against the Insured and
(ii) defence fees and expenses incurred by the Insured.
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.
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.
Notwithstanding anything to the contrary in the Policy the following shall apply: