Chapter 2b - Aviation Classes

Question 1

Physical damage to aircraft

Answer 1

Covers

• commercial fixed wing aircraft
• commercial rotary aircraft
• private aircraft
• microlights
• hot air balloons

Accidental damage to aircraft whilst in air, on ground or taxiing

Usually planes or it’s parts are completely replaced rather than fixed

If aircraft disappears considered a total loss

If total loss insurer has right to sell remaining parts for salvage to recoup some of their losses. Insured may want to keeps parts and buy back from insurer - so get sum insured less value of parts keeping.

Question 2

Drones/ unmanned aerial vehicle insurance

Answer 2

Covers physical damage including theft, cyber risks and liabilities

If licence required to fly drone insurance is also required

Law around liabilities is derived from aviation law and regulation

Question 3

Airline Liability insurance

Answer 3

Third parties other than passengers: falling objects causing injury or property damage

Passenger liability: accidental bodily injury while entering on board or leaving plane. Loss/damage to to baggage caused by accident to aircraft.

Airport operators liabilities:
Premises (PL)
Hangar keepers (loss/damage to unowned aircraft)
Products: injury/damage caused by goods

Question 4

Aviation War insurance

Answer 4

• Freely attainable, no permission needed
• Two sections:
  1. Loss/damage to aircraft
  2. Extortion/hijack

Exclusions:
War breaking out between UN Security Council members (UK, USA, France, China, Russia)

Question 5

Loss of Licence insurance

Answer 5

Covers aircrew unable to fly because injured or suffered illness and failed med exam

Income replacement insurance paying out agreed benefits

Question 6

Loss of Use insurance

Answer 6

Similar to BI - aircraft can’t earn money if damaged

Question 7

Aviation repossession insurance

Answer 7

Covers cost of repossessing aircraft and reconstructing any technical records for the aircraft

Question 8

Contingent hull, liability or war insurance

Answer 8

When banks lend money for purchase of aircraft they become the loss payee.

If insurance doesn’t pay out (eg. Due to non payment of premium) bank loses its security for the loan.

Bank can buy insurance to respond if main policy doesn’t.

Question 9

Space insurance

Answer 9

Covers launch vehicles and satellites from manufacture to end of life in space

Satellite pre-launch period covered by cargo (until engines ignite)

Property damage: total loss eg explosion or partial loss

Liability: state which launches object into space responsible for injury or damage caused to 3rd party

If satellite damaged while being loaded onto launch vehicle pre-launch insurer will look for another party against which to subrogate eg owner of launch vehicle.

Question 10

Controller and processor

Answer 10

Controller: how and why personal data is processed

Processor: acts on controllers behalf