Just wondering what levels of betterment others have in their aircraft insurance policies. New insurance brokers I am dealing with are proposing a betterment limit of €20,000 on an aircraft with a hull value of €200,000. Is this low? I am curious to find out what betterment limits others have in their policies.
I’m not sure of how this can work with an airframe unless it has a fixed life.
I had a shock load claim recently and the betterment issues only revolved around the propeller and magnito overhaul life and the proportion of the costs in terms of time run.
I don’t understand this. I thought insurers would pay zero towards betterment.
The problem they have with betterment is that it is an incentive to fraud. But then insuring for “agreed value” (as I have done) is an even bigger incentive… or maybe not because to cash in you would have to find a way of writing off the plane without significantly injuring yourself, which is very difficult to do unless you ditch, preferably in water so shallow that you can walk away 
Visicover definitely offer betterment in their policy. It puts the premium up a bit.
I have not read the small print so there may well be limitations, but it sounds like a nice idea for stuff like engines and propellers
Do you mean “new for old”?
Yes. If you generate your own quote online you can see the option. In the policy summary they call it
“Betterment – New for old cover for replacement parts following an insured loss.”
Peter wrote:
Do you mean “new for old”?
Effectively if you trash your 2000 TBO engine and it has 1000 hrs left on it then you will be asked to pay 50% of the cost of a new engine. If you have betterment cover then you won’t. Is this correct?
I have this Betterment clause (via Haywards Aviation)
This is from a Visicover policy under ‘Hull all Risks’:
1.3(c) In the event of a claim adjustable on the basis of a partial loss, there shall be deducted from the
claim under paragraph 1.1.(a) of this Section
i. the applicable Deductible as set forth in the Policy Schedule;
ii. such proportion of the Overhaul Cost of any Unit repaired or replaced as the used time
bears to the Overhaul Life of the Unit.
then if you have opted for betterment cover section 1.3(c)ii as shown above is removed:
Section 2. Betterment
Please note this section is only applicable if it is shown as In Force in the Policy Schedule.
Part ii. of condition 1.3(c) of Section 1. (Hull All Risks) is deleted and the full condition will now read as
follows:
1.3(c) In the event of a claim adjustable on the basis of a partial loss, there shall be deducted from the
claim under paragraph 1(a) of this Section
i. the applicable Deductible as set forth in the Policy Schedule.
Above is correct – You would normally get 10% of the Agreed Hull Value for betterment. Visicover is aimed at low valued aircraft which is why there is a charge for Betterment.
