What aviation insurance protects
Aviation insurance covers the risks connected with operating aircraft, aviation infrastructure and providing services in the industry. Because of the high value of the equipment and the possible scale of loss, this class is a specialty risk: terms are tailored individually, and large risks are almost always placed with the participation of the international reinsurance market.
A policy is needed by airlines and general aviation operators, owners and lessors of aircraft, operators of unmanned systems, airports, maintenance and ground-handling organisations, aviation training centres, and companies performing aerial work in agriculture, geology and monitoring. Kazakhstan legislation on the use of airspace provides for compulsory insurance of the operator's liability, so for a number of covers it is important to meet the established requirements.
Main risks and coverage options
- Aircraft hull — loss or damage in flight, during taxiing and on the ground; options for parking without flying are possible.
- Third-party liability on the ground — harm to life, health and property.
- Passenger liability, and liability for baggage, cargo and mail.
- Crew insurance against accidents and loss of professional fitness.
- Spare parts and engines in storage and transit.
- Liability of airports, maintenance and ground-handling organisations, including products liability.
- War and allied risks — by separate clause.
- Unmanned aircraft systems — damage to equipment and the operator's liability.
What is usually not covered
- flights in breach of the airworthiness certificate or without valid approvals;
- operation by a pilot without the qualification stated in the contract;
- operation outside the agreed territory or for purposes not provided for;
- wear, gradual deterioration, mechanical breakdowns without external cause;
- intent of the policyholder, and a number of political risks without a special clause.
What determines the price
The cost is determined by the type and age of the aircraft, its value and purpose, the type of operation (passenger, cargo, aerial work, private flights), the flight hours and qualifications of the pilots, the quality of maintenance, the geography of flights and basing, the loss history, the liability limits required and the level of deductible. The general situation on the international aviation market also has a significant influence.
How to choose a program and what to look for in the contract
- Sum insured — the agreed value of the aircraft; for leased equipment it is often set by the lease agreement.
- Limits of liability — a single combined limit or separate limits for passengers and third parties; compliance with legal requirements and counterparties' requirements.
- Deductible — may differ for flight, ground and individual parts.
- Territory and purposes of use — the list of countries, airfields and types of work.
- Requirements for pilots and maintenance — approvals, flight hours, compliance with the maintenance programme.
- Beneficiaries — including lessors and banks, and clauses protecting their interests.
The meaning of technical terms can be checked in the glossary.
What to do if an insured event occurs
- Ensure the safety of people and notify the authorised bodies as required.
- Immediately inform the insurer and the broker; do not start repairs without approval.
- Preserve the flight recorders, documentation, maintenance logs and crew information.
- Assist the investigation and the surveyor's inspection, and collect documents on the amount of the loss.
- Do not admit third-party claims without the insurer's consent.
How Polis Re helps
We compile a technical package on the aircraft and the operator, check the requirements of the law, lessors and customers, request offers from Kazakhstan insurers and arrange the placement of large risks through reinsurance on the international market. We help agree the terms, monitor renewal dates and support claims settlement. An overview of other lines is in the types of insurance section. To select a program, leave a request to the broker.