AVIATION INSURANCE
May 29, 2016 | Author: Alisha Fernandes | Category: N/A
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* # ' * . %. The Indian Civil Aviation market grew at a CAGR of 18%, being valued round US$ 5.6 billion in 2008. Further statistics revealed that the air traffic in August 2009 was a double digit figure. The domestic airliners flew 3.67 million passengers in August 2009, as against 2.92 million in the corresponding period of 2007, up by 26%. The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic traffic will go up by 25% to 30% till 2010 along with a surge in the international traffic by 15%. There would be more than 100 million passengers by 2010. Then again by 2020, Indian airports will in all probability handle over 100 million passengers every year. The investment plans to the tune of US$ 9 billion has been made by the Aviation Ministry for modernizing the existing airports by 2010. In terms of domestic passengers' volume, US have always been the leader with followers in the league like China, Japan and India. The number of domestic flights went up by 69% from 2005 to 2008, with the domestic aviation sector growing at 9-10%. h Ò p p p p p p p p pp
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2 India is one of the flourishing global aviation markets. As per Airport Authority of India (AAI) statistics, there are 127 airports in India which incorporates 13 international, 80 domestic, 28 civil and 7 custom airports. Moreover India has around 1091 registered aircrafts. Over the years there has been steady growth in the number of private players establishing their business in India due to increasing liberalization and deregulation. Hence, at present aviation industry consist of three types of players namely, Full cost carriers, Low cost carriers (LCC) and other start-up airlines. The aviation sector in India has registered an estimated increase in domestic passenger sector by 50% per annum in the recent years, while the growth in international passenger section is estimated as 25%. Experts foresee future growth in international cargo by 12%. As per the prediction of the Ministry of Civil Aviation, India in the coming decade will require 1,500 to 2,000 passenger aircrafts out of which 135 planes have already been added. It is also predicted that India's aircraft capacity will stand at 500-550. In the year 2010, as estimated by the ministry, the domestic market will exceed 60 million and the international traffic will achieve 20 million. And in 2020, Indian airports will be effective enough to support 100 million passengers, which would include 60 million domestic passengers. The quantity of cargo managed by the airport is estimated to decline in the range of 3.4 million tonnes per year.
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c Air Charter Services Pvt. Ltd. performs its business operations with private business aircrafts, executive and corporate air charters, helicopter tours, VIP charter flights, and photo and video flights. Its client list incorporates VIPs, corporate firms, tour coordinators, travel agents and air medical evacuation professionals. It provides services such as relief, VIP, air ambulance and privacy services.
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c Air Charter India is owned by the STIC Travel Group and has around 100 airplanes in India. It covers several international destinations with an unmatchable logistics support. The aviation company has 40 offices with a highly skilled manpower of above 1000 people. It offers services like heli-skiing, charter flights for pilgrimage in India, heli-sightseeing, corporate jets, executive jets, etc. Air Charter India provides airplanes such as helicopters, business aircrafts, aircrafts for corporates, individuals and group travelers.
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c National Aviation Company of India Limited (NACIL) was the first Indian aviation company which led the way for other companies in the aviation sector. It was initiated before the India gained its independence. Later it collaborated with Indian Airlines and gained the reputation of being the largest airline in South Asian airline. Air India Cargo, Air India Express and Air India Regional are its subordinates in aviation market. It offers First class, Executive class and Economy class services and has codesharing pacts with companies like Air France, Austrian Airlines, Aeroflot, Air Astana, Emirates Airline, Air Mauritius, Kuwait Airways, etc.
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c Aviation India provides services like cargo services, flight operation, air charter services, passenger services, freight control, advisory and consultancy, aircraft preservation and renovation, international flight operation, air supervision and helipad engineering, etc. The airlines has skilled workforce and offers total control and functional back-up to several international schedule / non-schedule operations.
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c Indian Airlines was inaugurated on 1st August, 1953 and in collaboration with its fully governed subordinate in aviation market Alliance Air, it takes pride in being recognized as one of the biggest regional airline systems in Asia. It has a fleet of 70 airplanes and covers 76 destinations, 58 Indian destinations and 18 foreign destinations. Globally it covers Oman, UAE, Kuwait, Qatar, Singapore, Yangon, Pakistan, Maldives, Bangladesh, Sri Lanka, etc.
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c The aviation company has its presence in 8 places namely, Mumbai, Ranchi, Surat, Hyderabad, Bangalore, Katra, Colombo (Sri Lanka) and Delhi. It has 350 daily departures and covers 65 destinations in India. It offers the benefit of no-cost travel to infants, ticketing counters, lavish aircraft interiors and ticketing flexibility.
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Indigo is a utilitarian low-price domestic airline which offers feasible flying alternatives for millions. The airline was facilitated by the Air Passengers Association of India (APAI) as the ͞Best Low-Fare Carrier in India for the year 2007͟. Indigo has 120 daily departures and a fleet of 19 Airbus A320. The airline covers 17 destinations namely, Agartala, Bangalore, Bhubaneshwar, Ahmedabad, Delhi, Chennai, Guwahati, Hyderabad, Goa, Imphal, Kolkata, Mumbai, Vadodara, etc.
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Paramount Airways is a business class airline which has its base in India and headquarters at Chennai. Endorsed by Madurai-based Paramount Group and Paramount Railways was inaugurated in 19th October 2005. Its fleet comprises 5 aircrafts and it operates in 8 destinations.
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ïc c Like SpiceJet, a Go Air airline is also a low price airline endorsed by the Wadia group. It was inaugurated in Mumbai in June 2004. It operates in 11 cities with 61 daily departures. It has started its functions in Ahmedabad, Chennai, Bangalore, Coimbatore, Goa, Cochin, Jaipur, Mumbai, Pune, Delhi, Srinagar, etc.
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c It is the one and only 5-star airline in India which offers excellent first class service on domestic itineraries also. A part of UB group, Kingfisher Airlines has received 30 awards for its novelty and customer satisfaction. After its tie-up with Deccan, the airline covers 64 cities and has 484 daily departures.
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Spice Jet is basically a low cost airline which incorporates many Boeing 737-800 airplanes in its fleet. It covers 14 destinations in India.
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c Air Sahara was inaugurated on December 3, 1993 with a fleet of only two Boeing 737-200s. Now it comprise of 27 aircrafts, 135 daily departures and availability of 16500 seats on regular basis. It reaches various Indian destinations like Bangalore, Kolkata, Delhi, Lucknow, Mumbai, Chennai, etc.
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c Jet Airways was established on May 5, 1993. It earns yearly revenue of Rs 2502.89 and total income of approx Rs. 117868.8 Million. At present it id India's biggest private domestic airline with 62 aircrafts and a market share of 25%. It covers 50 destinations with 340 regular departures. Jet Airways has pacts with foreign airlines, such as Lufthansa, Swiss, Gulf Air, Austrian Airlines, Qantas and Thai.
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Aviation insurance is insurance which is designed specifically to meet the needs of aviators. There are a number of different types of available for a variety of aircrafts and pilots. Laws about aviation insurance tend to be less clearly defined than those regarding car insurance, which can make it difficult to choose the right policy and carrier. Pilots who are not familiar with the specifics of the industry may want to consider asking for advice from an insurance broker or an experienced pilot.
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) Many rental and leasing agencies ask for proof of before they will release aircraft to pilots, or request that pilots purchase additional temporary coverage for special aircraft. When shopping for , people should think about the overall cost of the policy, and the cost of the deductible. Rp A degree, in combination with professional flight training, makes the student more competitive when entering markets. Once a student decides which type of flight school training will work best for them, the choice is then based on many of the same principals used for choosing any type of school. Rp
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People who own and operate their own generally purchase aviation so that they are covered in a wide variety of situations, and so that their will be replaced if they are damaged, lost, or stolen. Owners may also cover on they rent out, lease, or hire pilots to fly, in which case the individual pilot may need to carry additional to be fully covered in the event of an incident. Rp The primary customers for war risk are airlines and shipping companies. for ships or themselves is called war risk hull , while for the crews, passengers, and cargo is called war risk liability . Rp
General damage whiplash settlements are not as straightforward. Some courts and companies use set guidelines to evaluate what dollar amount to award for pain and suffering. Rp Depending on the size and scope of a corporation, a field auditor may be required to log several hundred miles a week in travel by car or . In most cases, trip expenses such as food and hotel room fees are compensated by the auditor's employer. Rp
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A hangar is a building used for storing aircraft while they are not in service. Hangars are large buildings with plenty of open space so that, if necessary, several aircraft can be maneuvered and stored inside. In addition to storage, hangars are also used as locations for aircraft maintenance and repair. While hangars are most commonly used for airplanes, specialized hangars store other forms of aircraft such as dirigibles and even spacecraft.
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Hull All Risk Insurance Policy: This policy is suitable for small aircraft operators belonging to
flying clubs, companies engaged in agricultural spraying operations, aircrafts especially designed for VVIPs, business executives and for those engaged in industrial aids. The policy scope includes all physical loss or damage sustained by the insured aircraft including total loss, disappearance. All losses are paid subject to deductibles. Rp
' ares All Risk Insurance Policy: Covers loss or damage to spares, tools, equipments and
supplies owned by the insured or the property for which the insured is responsible whilst on ground or in transit by land, sea, air including in own aircraft or whilst on the premises of others for storage only. Rp
Hull/' ares War Risk Insurance: Indemnity is provided to the aircraft as well as spares
caused by war, invasion, acts of foreign enemies, hostilities, civil war, rebellion, revolution, resurrection, martial law, strikes, riots, civil commotion, malicious acts, sabotage. Rp
Hull Deductible Insurance: Airlines at times have to bear a proportion of loss due to
application of a deductible under All Risk Policy, which may impose considerable financial difficulty on the insured. Therefore the operators insure part of their deductibles under this kind of insurance. Rp
Aviation Personal Accident (crew member) Insurance: This cover is designed to cover
insured person against injury, disablement or death arising as result of an accident that is generally granted on annual basis. The cover operates while mounting or dismounting from and whilst traveling an aircraft while the aircraft is being used within the geographical scope as per its permitted usage. This cover can also be on 24 hours basis. The capital sum insured varies according to the status of the insured or earning capacity and fixed by the insurers. Rp
Voss of Vicense Insurance: Operating crews of the aircraft are required to have valid license.
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Posted on January 5, 2011 by cbil360 :: Category: Insurance Aviation insurance provides coverage for hull losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents. Aviation insurance provides coverage for hull losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents. 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 was first introduced in the early years of the 20th Century. The first aviation insurance policy was written by Lloyds of London in 1911. The company stopped writing aviation policies in 1912 after bad weather and the resulting crashes at an air meet caused losses on many of those first policies. The first aviation polices were underwritten by the marine insurance underwriting community. The first specialist aviation insurers emerged in 1924. In 1929 the Warsaw convention was signed. The convention was an agreement to establish terms, conditions and limitations of liability for carriage by air, this was the first recognition of the airline industry as we know it today. In 1931, Captain Lamplugh, the British Aviation Insurance Companys chief underwriter and principal surveyor, said of the new industry: "Aviation in itself is not inherently dangerous. But to an even greater degree than the sea, it is terribly unforgiving of any carelessness, incapacity or neglect." Realising that
there should be a specialist industry sector, the International Union of Marine Insurance (IUMI) first set up an aviation committee and later in 1933 created the International Union of Aviation Insurers (IUAI), made up of eight European aviation insurance companies and pools. US Airways Flight 1549 was written off after ditching into the Hudson River The London insurance market is still the largest single centre for aviation insurance. The market is made up of the traditional Lloyds of London syndicates and numerous other traditional insurance markets. Throughout the rest of the world there are national markets established in various countries, this is dependent on the aviation activity within each country, the US has a large percentage of the worlds general aviation fleet and has a large established market. Click on the following link to contact us for affordable and comprehensive aviation insurance policy.
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TNN, May 24, 2010, 01.07am IST
Read more: Mangalore crash: Insurers may have to shell out Rs 400 crore - The Times of India http://timesofindia.indiatimes.com/business/india-business/Mangalore-crash-Insurers-may-have-toshell-out-Rs-400-crore/articleshow/5966428.cms#ixzz1BxdLZ1jg MUMBAI: Insurance firms are already feeling the heat with the national carrier, Air India, and relatives of the passengers who died in the ill-fated Mangalore air disaster set to claim compensation worth hundreds of crores of rupees in the coming days. It is estimated that insurers may have to collectively shell out compensation claims to the tune of Rs 350-400 crore for loss of 158 human lives and the total destruction of the Boeing 737-800 aircraft that crashed. The Air India (AI) Express aircraft was provided a comprehensive insurance coverage by four private sector general insurance companies led by Reliance General Insurance Co Ltd and co-insured by HDFC Ergo, Bajaj Allianz and Iffco Tokio. The entire AI fleet of 136 aircraft was insured for a total of $8.59 billion at an annual premium of around $24.3 million. Industry experts say that AI will make insurance claims of at least Rs 300 crore as damages and another Rs 100 crore for passenger and cargo compensation claims. According to the international Montreal convention for accident compensation treaty, which has 95 signatories including India, victims of an air disaster can claim Rs 75 lakh per passenger from the airline, Raju Desai, director of Raju Krishna insurance brokers, said.
AI on Sunday evening announced Rs 10 lakh as interim compensation for the victims. This compensation amount is a pittance compared to the conditions stated under the Montreal convention. The victims can sue the airlines for gross negligence and human error. There is bound to be a long bitter legal battle ahead both for the airline and the private insurance company, admits an insurance official. Meanwhile, private insurance companies who are part of the consortium said that the insurers had transferred the majority of the risk to re-insurers based in London and to the general insurance corporation( GIC) of Mumbai which has around 14% of the reinsurance portfolio. ''We will suffer only a loss of around Rs 5-7 crore as we have re-insured this aviation portfolio,'' an insurance official who was part of the consortium said. A senior GIC official said that they may incur a loss of around Rs 15 crore. Industry experts say that it will be interesting to see how the consortium of private sector insurance firms will settle the damage.
Read more: Mangalore crash: Insurers may have to shell out Rs 400 crore - The Times of India http://timesofindia.indiatimes.com/business/india-business/Mangalore-crash-Insurers-may-have-toshell-out-Rs-400-crore/articleshow/5966428.cms#ixzz1BxdW8BwW
# Viju B, TNN, May 24, 2010, 01.23am IST
Read more: AI, insurance companies feel compensation heat - The Times of India http://timesofindia.indiatimes.com/city/mumbai/AI-insurance-companies-feel-compensationheat/articleshow/5966456.cms#ixzz1BxdjPfRj MUMBAI: Insurance firms are already feeling the heat as the national carrier, Air India, and relatives of victims of the Mangalore air crash will now claim compensation of hundreds of crores of rupees. It is estimated that insurers may have to collectively shell out claims to the tune of Rs 350 crore-Rs 400 crore for the loss of 158 lives and the complete destruction of the Boeing 737-800 aircraft that crashed into the valley. According to an industry expert, Air India will seek at least Rs 300 crore as damages and another Rs 100 crore for passenger and cargo compensation claims.
The Air India Express plane was covered by Reliance General Insurance Co Ltd and co-insured by HDFC Ergo, Bajaj Allianz and Iffco Tokio. The entire Air India fleet of 136 aircraft is insured by these companies for $8.59 billion at an annual premium of around $24.3 million. According to the international Montreal convention for accident compensation treaty, which had 95 signatories including India, air disaster victims could claim Rs 75 lakh per passenger from the airline, said Raju Desai, director of Raju Krishna Insurance. Compared to that amount, what Air India offered on Sunday evening as an interim compensation for victims was a pittanceͶthey announced the figure as Rs 10 lakh only. "The victims can sue the airline for gross negligence and human error. This is going to be a long, bitter legal battle both for the airline and the private insurance company," said an insurance official. However, the private sector insurance companies, which are part of the consortium that covers the aircraft, said they would not suffer much loss as they had transferred the majority of the risk cover to a London-based firm and the General Insurance Corporation (GIC) of Mumbai for re-insurance, with the GIC holding 14% of the reinsurance portfolio. "We will suffer a loss of only Rs 5 crore to Rs 7 crore as we have re-insured this aviation portfolio and our losses will be minimum," said an official who was part of the consortium. A senior GIC official pegged the loss at around Rs 15 crore. After years of getting their fleet insured by public sector companies, AI had opted for private sector firms, hoping that unlike the loss-making government agencies, the latter would be able to come to the rescue more efficiently in case of a major air disaster. "It remains to be seen if these private insurance firms would be able to pay the damages fast and efficiently," Desai said. CMD of AI Arvind Jadhav said a team from the London and the local re-insurance firms will visit the site and assess the damage. "AI officials are also collecting important documents such as post-mortem reports, identity proof and immigration papers to help in the process," he said
Read more: AI, insurance companies feel compensation heat - The Times of India http://timesofindia.indiatimes.com/city/mumbai/AI-insurance-companies-feel-compensationheat/articleshow/5966456.cms#ixzz1Bxdnk2N7
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MUMBAI: Airlines are discovering that their fleet insurance packages are insufficient to cover them from losses arising out of flight cancellations. But even as they discover this new risk that has the potential to severely hit their balance sheets, insurance companies are saying that covers may not be available. Although flights to-and-from major airports in Europe resumed on Thursday, the airline industry is facing losses running into millions of dollars with over 95,000 flights being cancelled. There is also a potential dispute brewing between perishable cargo owners and insurance companies, with insurers saying that damage to goods would not be covered, if airlines have refused to accept the cargo. ͞We do not expect any major claims because of flight cancellations due to the volcanic ash,͟ said Yogesh Lohia, chairman, General Insurance Corporation Ͷ the national reinsurance company, which underwrites the business of all non-life insurers in India. Mr Lohia added that there would be travel insurance related claims, however, the amounts involved would be very small. Losses due to flight cancellations are not new to airlines. In India such cancellations have been a frequent feature in flights leaving Delhi during winter because of fog . Flag carrier had so often been a victim of such cancellations that it took out a policy last year to cover the Delhi fog. This was a separate domestic policy and had nothing to do with its fleet cover. ͞Typically business losses can be covered only under a ͚loss of profits͛ cover. However, even this cover comes into force when the losses follow some damage arising out of an insured event,͟ said the chief executive of a general insurance company. In the case of recent flight cancellations from Europe, the loss is a result of the flights being cancelled due to volcanic ash in the air. ͞If the flight was cancelled because of damage to the plane, following the volcano, the losses would be covered,͟ he added. According to Prabodh Thakkar, chairman, Aon Global Ͷ an insurance broking firm that deals with aviation insurance Ͷ even if an airline had bought cover for flight cancellations arising out of bad weather, it was unlikely that the current disruption would be covered. ͞The proximate cause of the loss is the volcano and this cannot be treated as bad weather,͟ he said. Insurers also do not rule out disputes arising out of marine cargo claims. ͞There have been instances of perishable goods that have got damaged because of flight cancellations. It is not clear whether the cargo insurance will make good claims. Some insurers said they would be willing to provide limited cover to airlines for cancellations arising out of volcanoes, but it would be a limited amount, as it is uncertain that reinsurance support will be available for such a policy,͟ said the CEO of a non-life company.
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