What is insured in aviation

Aviation insurance covers the aircraft itself, the liability of its owner and operator, and the life and health of people on board. Insurers cover aeroplanes and helicopters of commercial airlines, business and general aviation, maintenance centres and flight schools, as well as unmanned aircraft systems.

Hull insurance: insuring the aircraft itself

Aircraft with a state registration certificate and an airworthiness certificate (or documents replacing them) are accepted for insurance, together with the equipment on board.

Main risks

  • Damage — a change in the aircraft's condition as a result of an event that requires repair.
  • Total loss (crash) — destruction beyond repair or damage where repair is not economically viable; the threshold is set by the contract.
  • Disappearance — if the aircraft is not found within the period set by the contract after departure.

Typical causes of claims

  • incidents in flight, during take-off, landing and taxiing;
  • landing gear failure, depressurisation, control system failure;
  • bird strikes in the engine;
  • fire, lightning strike, storms and other natural phenomena;
  • damage by third parties while parked;
  • hijacking and theft.

The contract may provide for reimbursement of the cost of transporting a damaged aircraft to the repair site and of search and rescue. Spare parts, engines removed from the wing, and war and terrorism risks are insured separately under special clauses.

Compulsory insurance under the Air Code

Chapter XV of the Air Code of the Russian Federation establishes the compulsory types of insurance in civil aviation. The key ones are:

  • the aircraft owner's liability to third parties — for harm to the life, health and property of people on the ground;
  • crew insurance — life and health while on duty;
  • the carrier's liability to passengers — for harm to life, health and baggage; passenger carriage is also governed by Federal Law No. 67-FZ (OSGOP — compulsory carrier liability insurance);
  • the carrier's liability to cargo owners;
  • the operator's liability when performing aerial work.

Minimum sums insured are set by the Code and the OSGOP law. An aircraft may not be operated without valid policies. Learn more about carrier liability in the OSGOP section.

Voluntary liability

Above the compulsory limits, airlines and airports insure general liability for higher amounts, as well as:

  • the liability of airports and ground handling operators;
  • aviation manufacturers' product liability;
  • the liability of maintenance organisations.

Drones

For commercial operators of unmanned aircraft, insurers offer hull and third-party liability programmes. Terms depend on the weight of the aircraft, the purpose of flights and the territory.

What determines the cost

  • the type, model and year of manufacture of the aircraft;
  • the insured value and the chosen risks;
  • the type of operation — passenger, cargo, private flights, aerial work;
  • the geography of flights and the home base;
  • crew qualifications and flight hours;
  • loss history;
  • the deductible.

The hull sum insured is based on the insured value of the aircraft at the date of the contract. Large aviation risks are almost always passed on to reinsurance.

How the contract is arranged

The insurer requests a proposal form: details of the aircraft and its flight hours, the operator, the home base, the crew, the maintenance programme and the incident history. For large risks the insurer agrees terms with reinsurers, so it is best to start preparing early — several weeks before the current policy expires.

The policyholder's obligations

  1. Notify the insurer of an incident promptly — within the period specified in the contract and in writing.
  2. Notify the insurer if the aircraft is leased, pledged or sold, or if the operator or home base changes.
  3. Comply with airworthiness and maintenance requirements.

Before concluding a contract, study the list of risks and exclusions carefully. Learn more in the Aviation insurance section or submit a request to Polis Re specialists.