Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate aviation terminology, as well as terminology, limits and clauses specific to aviation insurance.
Aviation insurance policy is divided into the following 3 sections:

  • Hull – loss or damage – this is effected by aircraft owner or operator against loss or damage to the aircraft itself. The policy provides cover for the aircraft against accidental loss or damage from whatsoever cause arising while the aircraft is in flight, taxying, on ground and moored.
  • Third Party Liability – this section indemnifies the insured for all sums legally due to third parties resulting from accidental injury to or death of persons or damage to property on the ground and outside the aircraft provided such an incident is caused directly by aircraft or by objects falling therefrom.
  • Legal Liability to passengers – This section is to indemnify the aircraft operator against all sums for which he is legally liable to pay in respect of accidental bodily injury to or death of passengers while entering into, being carried in or alighting from the aircraft or in the course of carriage by the operator.