Aviation Insurance in Kazakhstan

Aviation insurance protects the property interests of the owner, operator, lessee or lessor of an aircraft. The policy may cover hull damage, total loss, disappearance, salvage expenses and other risks expressly agreed with the insurance company.

Important: aviation risk is assessed individually. The type of airplane or helicopter, the purpose of flights, the qualifications of the crew, the geography of operation, maintenance and the history of incidents affect both the cost and the scope of cover.

What counts as air transport

Depending on the insurer's rules, passenger and cargo airplanes, helicopters, business aviation aircraft, training aircraft and certain types of aviation equipment may be accepted for insurance. Unmanned aircraft are usually considered under specialized programs.

• the aircraft hull and structural elements;
• engines and auxiliary power units;
• avionics, navigation and communication equipment;
• permanently installed special equipment;
• spare parts and removable units - under a separate condition;
• the property interest of the lessor or creditor.

Hull insurance does not replace liability insurance of the operator, crew, passengers, baggage and cargo. A separate section of the contract or an independent policy may be required for each interest.

Main cover options

Which events can be insured

The insured event is defined by the contract. Cover may include sudden and unforeseen damage during flight, taxiing, parking or ground handling.

• an aviation accident or incident;
• collision with a ground object, a bird or another aircraft;
• fire, explosion, lightning strike and certain natural phenomena;
• damage during an emergency landing;
• unlawful acts of third parties;
• theft or hijacking, if the risk is expressly included;
• damage during towing and ground handling;
• reasonable expenses for salvage and for preventing an increase in damage.

Some technical failures are covered only when they led to subsequent insured damage. The cost of replacing a faulty part may not be reimbursed, even if the consequences of the accident are covered.

Main exclusions

• wear, corrosion and gradual deterioration of parts;
• operation in breach of airworthiness or mandatory regulations;
• flying outside the agreed territory;
• operation by a crew without the required authorizations and qualifications;
• use other than the declared purpose;
• overloading or violation of operating limitations;
• intentional acts of the policyholder or beneficiary;
• war, terrorism, seizure and confiscation without special cover;
• indirect losses and downtime without separate insurance.

Aviation exclusions can be worded in detail. For international operation, you must additionally check sanctions restrictions, registration requirements and the applicable law.

What the cost depends on

• the market value and year of manufacture of the aircraft;
• the type, model, maximum takeoff weight and number of engines;
• passenger, cargo, training or special operation;
• geography, routes and home airports;
• the aircraft's flight hours and the intensity of flights;
• the qualifications, flight hours and authorizations of the pilots;
• the organization of maintenance;
• the accident rate and insurance history;
• the chosen risks, limits and deductible;
• leasing terms and the requirements of the financing organization.

The insurance premium may be set for one aircraft or for the whole fleet. An offer with a low rate should be compared on the same terms: territory, war risks, deductible, currency, valuation method and the participation of reinsurers.

How the sum insured is set

The sum insured is usually based on the agreed value of the aircraft. To confirm it, the acquisition agreement, leasing documents, a valuation, the technical condition, the configuration and market data are used. In the contract it is important to establish the currency and the procedure for revising the value.

In the case of leasing, the beneficiary may be the owner or the financing organization. Insurance certificates and special conditions must comply with the requirements of the leasing agreement, but not contradict the main insurance contract.

Documents for calculation and purchase

• a questionnaire describing the operation;
• the registration certificate and the certificate of airworthiness;
• technical specifications, year of manufacture and serial numbers;
• information on the engines and equipment;
• the maintenance program;
• data on the crew, licences and flight hours;
• routes, airports and flight areas;
• statistics of incidents and losses;
• a lease or pledge agreement - if any;
• confirmation of the aircraft's value.

A change of routes, purpose, crew or technical condition may be regarded as a change of risk. Material circumstances must be reported to the insurer in the manner established by the contract.

What to do in the event of an aviation incident

1. Ensure the safety of passengers, crew and people on the ground.
2. Act in accordance with the operator's emergency procedures.
3. Report to the aviation and other competent authorities.
4. Notify the insurer, and the broker if one is involved, immediately.
5. Preserve the aircraft, the wreckage and the documents for the investigation.
6. Do not admit liability or conclude agreements without approval.
7. Record the expenses for salvage, storage and transportation.
8. Give the appointed experts and surveyors access.

The official investigation of causes and the insurance settlement solve different tasks, but use a common body of evidence. Materials that may be important for establishing the circumstances must not be altered or destroyed.

Documents for the payment

• a written notice and an application;
• the insurance contract and the aircraft's documents;
• the materials of the aviation investigation;
• technical logs and maintenance records;
• crew data and flight documentation;
• photographs, video and a diagram of the damage;
• an expert's report, a defect survey and a repair estimate;
• invoices for salvage, transportation and storage;
• the beneficiary's bank details.

How to compare offers

1. Check whether the cover applies in flight, during taxiing and while parked.
2. Compare the agreed value and the criteria for total loss.
3. Clarify the territory and the excluded airports.
4. Check the requirements for pilots and maintenance.
5. Compare the deductible for the hull, engines and special risks.
6. Clarify the cover of spare parts and salvage expenses.
7. Check the currency of payment and the participation of the beneficiary.
8. Agree the repair procedure and the use of original parts.

Frequently asked questions

Can a leased aircraft be insured?

Yes. The contract must take into account the interests of the owner, the operator and the financing organization. The beneficiary and the payment procedure are specified in writing.

Is engine damage covered?

It depends on the cause and the wording of the policy. Wear and internal failure are often excluded, but subsequent damage to the aircraft may be considered separate insured damage.

Do I need to report a change of pilot?

If the contract contains requirements for authorized pilots, flight hours or qualifications, the change must be agreed. A breach of the condition can affect the payment.

Does the policy apply outside Kazakhstan?

Only within the specified territory and routes. For international flights, legal, sanctions and reinsurance restrictions are checked.

Conclusion

Aviation insurance requires an accurate description of the aircraft and its actual operation. A good policy agrees the value, territory, crew, technical requirements, deductible and the procedure to follow when an event occurs.

This material is for information purposes. The terms and insurance payments are determined by the contract of a licensed insurance company.