How Airline Liability is Covered by Aviation Insurance
The All Risks form of Aviation Insurance covers damage only to the "Hull" as the aircraft is termed, and protects against physical damage only. It does not cover financial setbacks due to loss of use of the airplane and it does not cover liability. Separate liability coverage must be purchased to cover the cargo, which includes luggage, mail and anything else that is transported and liability insurance must be carried for the most important aspect of airline travel, the passengers.
Human error, pilot or that of other personnel, such as air controllers, is by far the leading cause of airplane accidents, and the airlines must assume liability in this case. Pilot error accounts for up to 46 percent of all recorded airline accidents. Seven percent of accidents have been attributed to other human error by air controllers or other personnel. Mechanical failure contributed to accidents in 19% of the cases. Therefore, the airlines were liable in the vast majority of airline crashes, since the weather, sabotage and undetermined causes together were recorded as the cause in only 26% of crashes.
Aviation Insurance liability coverage meets most of the claims made in these instances. This coverage is purchased separately and is an additional but necessary component of aviation insurance. Liability coverage is purchased for passengers, their baggage and all cargo.
In addition, there is a special type of aviation insurance known as Aircraft Third Part Liability, which covers the liability for damage incurred by people or property outside of the airplane. This covers the on the ground damage in the case of crash or in the event that something falls from the aircraft. Residents and their homes that are situated near airports are often subjected to equipment coming loose and falling from the aircraft, as well as fuel spills.
All airlines carry both of these types of liability coverage as part of the aviation insurance, and in many countries, sufficient coverage must be demonstrated before and operator's license is granted. Other countries require proof of adequate aviation insurance prior to allowing a plane to land at airports within the country. Liability coverage usually does not extend to damage to the insured's personal property, or that caused by radioactive contaminantion. Noise and polution are not covered unless they arise from an aircraft crash or in air emergency. Also damage incurred due to war is not covered by liability clauses of aviation insurance, although separate coverage for this can be purchased.
by Sally.Anderson 19 years ago