Description of aviation insurance business
The Aviation Insurance referred to the universally
recognized insurance for aircraft with standard conditions accepted
by the underwriters. An airline operator purchases these insurance
policies. In general aviation refers to the aircraft, that is
to say, hull and machinery of the aircraft. The following types
of covers are given:- (a) Insurance of the aircraft itself against
loss or damage. (b) Insurance of legal liability to third parties
and passengers. (c) Insurance of pilots, crews and ground staff
for personal accident. (d) Insurance of pilots against loss of
professional license, (e) loss or damage to cargo carried.
Sadharan Bima Corporation solely underwrites
all types of Aviation Risks of Bangladesh Biman Corporation(the
National Flag Carrier). And also underwrites other Aircraft risks
of local private aircraft operators. SBC also covers insurance
of pilots, crews and ground staffs for Personal Accident and insurance
of pilots against Loss of Professional License(LOL).
Aviation Insurance Policy : The following major policies are
available to cover the Aviation Risk in Sadharan Bima Corporation
:
1) Aviation hull
all risks insurance : It covers ‘All Risks’ of physical
loss or damage to an aircraft (except exclusions provided in the
policy). Covers also include pilot error, theft, all natural causes,
damage during maintenance, ground fires/ taxiing accidents etc.
Coverage does not include groundings due to FAA or manufacturer
defectives or consequential loss of revenues, radioactive contamination
/ nuclear war and allied perils and mechanical breakdown.
2) Aviation hull
war and allied perils insurance : This policy covers loss of or
damage to an aircraft resulting from war and associated perils
including confiscation, terrorist acts, strikes, riots, sabotage
and hijacking. Exclusions are : losses arising from nuclear war,
War between the five major powers and UN geographical exclusions
are some time imposed.
3) Spares all risk insurance : : It covers ‘All Risks’
of physical loss or damage to spares including spares engines
when not fitted to an aircraft.
4) Aviation legal
liability insurance : This insurance covers operators liabilities
to passenger, passenger’s baggage, cargo and mail and legal
liabilities to the third parties. Deductibles are normally applied
only in respect of baggage claim.
5) Deductible insurance : This insurance designed to reduce the
standard level of deductible imposed under the main Hull All Risk
Insurance. It is normally a separate policy and subject to aggregate
limit for all claims.
6) Aviation war,
hijacking and other perils excess liability insurance : This insurance
policy covers damages for bodily injury or property damage, caused
by an occurrence in excess of the limitation of liability contained.
This policy attached in the Aviation policies after the terrorism
activities of 09.11.2001 World Trade Centre(USA).
7) Total loss only insurance (TLO) : This insurance provides the
protection of an additional insured amount payable in the event
of total loss of the aircraft.
