Aviation insurance
Posted on the site 02.07.2019 15:00.
NIC has provided asset insurance to air transport since 1996, and liability insurance to aircraft owners since 1998.
Aviation insurance includes a set of insurance coverages used in aircraft insurance and cargo carried on such aircraft, airfield equipment and maintenance, air carrier civil liability towards passengers, ground support units, liability to third parties, and liability to aircraft manufacturers. Aircraft insurance during construction, maintenance and repair, and during flight test and demonstration flight, liability of hangar and premise owners, and liability for product and ban of flight operation.
Aviation insurance includes a set of insurance coverages used in aircraft insurance and cargo carried on such aircraft, airfield equipment and maintenance, air carrier civil liability towards passengers, ground support units, liability to third parties, and liability to aircraft manufacturers. Aircraft insurance during construction, maintenance and repair, and during flight test and demonstration flight, liability of hangar and premise owners, and liability for product and ban of flight operation.
NIC Insurance Company aviation insurance covers the following insurance risks:
- Hull insurance: aircraft damage or loss.
- Hull war risk insurance: aircraft damage or loss due to war risk or terrorism etc.
- Air carrier civil liability (including risks from terrorism, war, strike etc.): air carrier liability to third parties, passengers, or freight owners.
Geographically, insurance is provided with worldwide coverage.
In terms of air carrier civil liability, insurance limit amounts reach USD 1 bln (depending on aircraft type).
Insurance rates
Aircraft and carrier civil liability insurance rates
AIRCRAFT LOSS, FATALITY AND/OR DAMAGE rate from 0.23713%
LOSS, FATALITY AND/OR DAMAGE TO AIRCRAFT SPARES rate from 0.0619%
AIR CARRIER THIRD PARTY LIABILITY rate from 0,062870%
The above insurance rates are basic.
Individual rate under an insurance agreement depends on properties of the insurance subject and insurance conditions, and is subject to increase or decrease.
Aircraft manufacturer risk insurance rates
Risk: Aircraft spares insurance
Rate: from 0.1 %
Risk: Aircraft insurance during construction / maintenance / repair phase
Rate: from 0.2 %
Risk: Aircraft insurance during test flight or demonstration flight
Rate: from 0.38 %
Risk: Third party liability insurance to aircraft manufacturers
Rate: from 0.44 %
The above insurance rates are basic in nature.
Specific rate under an insurance agreement depends on the nature of the insurance subject and policy terms, and can be adjusted either upward or downward.
Significant capabilities of our company is supported by an efficient reinsurance system which is based on a long-term experience in close cooperation with the leading foreign reinsurance companies: Allianz, Swiss Re, Starr Insurance, Partner Re, La Reunion Aerienne, Liberty, Torus, AMLIN, AXA, TALBOT, Lloyd’s syndicates etc. Reinsurance activity in the Western market is performed with a support from Willis Ltd, a major insurance broker.
Mutually beneficial cooperation with the global insurance community has allowed our company to adequately respond to changes in the international market and make efforts at cost reduction of our customers on obtaining aviation risk insurance services. Jointly with Volga-Dnepr Group, NIC is engaged in developing an insurance loss management system for Volga-Dnepr fleet of aircraft. Being an international Group, Volga-Dnepr has been a major customer to NIC in terms of aviation insurance services.
During long-term operations, our personnel have acquired significant operating experiences in insuring aviation risks. Major insured events that took place to the covered aircraft assets became challenges to NIC.
Thus in 1999, the Antonov АN-124-100 Ruslan freighter airplane was seriously damaged during landing. The compensation for damage amounted to over USD9 mln. In 2002, NIC Insurance Company paid USD1.5 mln insurance for Ilyushin IL-76 airplane damage by a typhoon.
In 2018, NIC Insurance Company paid USD10.5 mln insurance for damaged B747 engines resulting from ice ingestion.
In 2000, NIC Insurance Company became a Member to Association of Russian Aviation and Space Insurers (RAAKS).
Aircraft manufacturer combination insurance rules
Posted on the site 02.07.2019 15:00
Air carrier liability and aircraft insurancePosted on the site 02.07.2019 15:00