Flight Insurance

Flight insurance is an insurance which covers an airplane and other types of aircraft. As a passenger, one may obtain flight insurance as a component of the travel insurance purchased. IN most cases, however, flight insurance is associated with the insurance policy purchased by airlines to cover their fleet of aircrafts. Although it is not known exactly when the earliest use of flight insurance occurred, flight insurance is associated with the Warsaw Convention, in which the liabilities covered by an aircraft are specified. Eventually, this led to the creation of the International Union of Aviation Insurers (IUAI).

Since purchasing flight insurance is expensive, most airlines obtain flight insurance arrangements which cover not only a single aircraft but an entire fleet owned by the insured airline. Usually, flight insurance covers risks associated with physical damage or loss as a result of accidents. Flight insurance also covers liabilities to injury, death, loss, and damage of passengers, airline crew, baggage, and other items typically carried on an insured aircraft. The details of what physical loss and damage entail depend on the terms and conditions specified under the flight insurance policy. In most cases, physical loss and damage due to regular wearing away of aircraft parts is not covered by a flight insurance policy.

What does flight insurance cover?

As mentioned, flight insurance provides coverage for the losses and liabilities incurred by an insured airline when its aircraft is physically damaged due to accidents and untoward incidents. The flight insurance may cover a single aircraft owned by a private aviator or an entire fleet of aircrafts operated by an airline. Flight insurance provides liability coverage to passengers and crew carried on an aircraft in the event that they are injured or die in a plane crash. As well, flight insurance covers the physical damage and loss suffered by an aircraft and the cargo it carries. A third party liability coverage is also provided by flight insurance when the insured aircraft causes injuries, death, and damage to people and property outside the aircraft. However, certain costs incurred by an aircraft, such as those resulting from normal wear and tear and mechanical breakdown, are not covered by a flight insurance policy.

Why would you need flight insurance?

As a passenger of an aircraft, you are covered by the liability terms and conditions provided in flight insurance policies. If you are in the airline industry, you need flight insurance to cover the insurmountable financial loss facing your business if an accident involving your aircraft causes injury, death, damage, and other risks.