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Knowing about Aircraft Insurance
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Posted On :
May-25-2010
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Article Word Count :
397
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Airline industry was well established in 1933 and a need for specialized aircraft insurance industry was realized. The International Union of Marine Insurance set up an aircraft committee and by 1934 eight European Insurance companies were established.
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Aircraft insurance is a specialized industry, which differs in lot of ways from other insurance industries. The first insurance for an aircraft was done in the early 20th century by Lloyds of London in 1911. However, the airline industry was well established in 1933 and a need for specialized aircraft insurance industry was realized. The International Union of Marine Insurance set up an aircraft committee and by 1934 eight European Insurance companies were established.
Aircraft Hull Insurance
The task of accepting the risk of major airlines can not be handled by a single insurer as aircraft accidents involve loss of million of dollars. So the industry tends to use different kinds of syndicates.
Almost every airline arranges fleet policies to insure all aircrafts they own and operate. Most of them are covered by ‘All Risk Policy’, but this includes a fairly high deductible amount. This deductable can lengthen between $50,000 for a Twin Otter to $1,000,000 for a huge bodied jet aircraft.
Aircraft Liability Insurance
This consists of two types of insurance categories:
Liability covering baggage, cargo, passengers, mail and crew of the aircraft. It is concerned with the operations that an airline performs.
Another is the third party liability insurance which is for the damage caused to the property or people who are not boarded on the plane.
Every airline should cover both the categories and try to get them in a single policy. Small aircrafts use small airstrips which have less potential risk exposure in comparison to the large operators using main airports.
General Aviation insurance
Many of the aircraft companies cover other end of the market, consisting of privately owned airplanes and helicopters. However much of the insurance institutions do not provide insurance facilities for both the aircraft itself and any liability attached to it. There are other specialized insurance available such as flight instructors, which aims at protecting flying instructors against any sort of negligence claims. Insurance is also provided for a rent out, leased out aircraft and also for the pilot if he is hired for flying the aircraft. Certain benefits are also meant for the family members of the pilot and crew in case of any incident.
Aircraft insurance is a specialized industry, and those willing to take it should go for an advice from an insurance company or an insurance broker.
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Article Source :
http://www.articleseen.com/Article_Knowing about Aircraft Insurance_19946.aspx
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Author Resource :
For more insights and further information about Aircraft Insurance, Aircraft Financing and Aviation Insurance visit our site:- http://usaviationfinance.com/
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Keywords :
Aircraft Insurance, Aircraft Financing, Aviation Insurance,
Category :
Finance
:
Finance
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