What aviation insurance is
Aviation insurance brings together the classes used by airlines, general aviation operators, aerial work companies, airports and ground handling operators. Some are compulsory under the Air Code of the Russian Federation (Chapter XVI "Insurance"), others are voluntary.
Compulsory insurance under the Air Code
| Air Code article | What is insured | Minimum amount |
|---|---|---|
| Art. 131 | The aircraft owner's liability to third parties for harm to life, health or property when operating the aircraft | At least two minimum wage units per kilogram of maximum take-off weight — for flights in Russian airspace |
| Art. 132 | Life and health of the crew of a manned aircraft while on duty | At least RUB 1,000,000 per crew member |
| Art. 133 | The carrier's liability to passengers for harm to life, health, luggage and hand baggage | Under Law No. 67-FZ: per passenger at least RUB 2,025,000 (life), RUB 2,000,000 (health), RUB 23,000 (property) |
| Art. 134 | The carrier's liability to the cargo owner or shipper for loss, shortage or damage of cargo | At least two minimum wage units per kilogram of cargo |
| Art. 135 | The operator's liability for harm that may be caused when performing aerial work | Set by the contract |
For international flights and aerial work in foreign airspace, the minimum third-party liability amount is set by the law of the relevant country. Carrier liability on international carriage is also governed by the 1999 Montreal Convention, to which Russia has been a party since 2017.
Carrying passengers without an OSGOP contract is an offence under Article 11.31 of the Code of Administrative Offences: the fine for legal entities is RUB 500,000 to 1,000,000. More on the OSGOP page.
Voluntary classes
- Aircraft hull — loss of or damage to an aeroplane or helicopter in flight, while taxiing and on the ground, including engines and on-board equipment.
- Spares and engines in storage and in transit.
- War and allied perils — hijacking, seizure, terrorism; insured separately.
- Airport and ground handler liability — for harm to aircraft, passengers and third parties.
- Manufacturers' and maintenance organisations' liability for the quality of aircraft and work.
- Unmanned aircraft systems — hull and third-party liability under insurers' programmes.
- Flight crew insurance against loss of licence and accidents.
Voluntary liability limits are usually far higher than the compulsory minimums: the actual damage in an aviation accident can exceed them many times over.
What drives the price
- aircraft type, age and value;
- type of operation: scheduled services, charters, business aviation, aerial work (agricultural, air ambulance, construction and installation), training flights;
- flight hours, route geography and home base;
- crew experience and training, maintenance organisation;
- accident and claims history;
- liability limits and the hull deductible.
Aviation risks are large, so insurers place a significant share into reinsurance. The capacity and reliability of an insurer's reinsurance protection are key selection criteria.
Choosing an insurer
- A Bank of Russia licence for the relevant classes and proven experience in aviation insurance.
- Specialists in aviation claims and surveyors.
- Terms for repairs at certified organisations and for parts replacement.
- Compliance of the contract with lessors' and banks' requirements.
- Fast issue of insurance certificates requested by airports and foreign authorities.
See the catalogue under Insurance companies. Polis Re specialists can help gather data and request offers — submit a request.
Claims
- Notify the insurer of the occurrence immediately and take steps to limit the damage.
- Keep the aircraft and flight recorders intact until the investigating authorities decide otherwise.
- Agree inspection, damage assessment and the repair organisation with the insurer.
- Pass claims from passengers and third parties to the insurer and do not admit liability without its consent.
Common mistakes
- Compulsory cover is bought at the minimum, and voluntary liability limits do not match the real risks.
- The type of operation in the contract differs from reality: for example, private flights are declared but aerial work is performed.
- The crew is not insured, or not all of it.
- Flying abroad without meeting foreign legal requirements for liability insurance.
