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Something to check on your insurance

Just come across this interesting article. local copy

It's worth checking that your combined insurance cover is usable to cover the passenger liability.

It is suggested that one could have a policy which is quite cheap and has the normal €5M-10M or similar 3rd party cover, but the passenger liability is just the legal minimum (c. €100k) which is obviously not likely to be enough. But since passenger claims make up the bulk of GA claims, this is how they can get the premium right down.

Administrator
Shoreham EGKA, United Kingdom

I was most shocked to find that our insurance didn't cover any damage we did while making sonic booms. I think insurance would be the least thing I'd worry about if the Auster was making a sonic boom.

My shock turned to abject horror when we discovered they had an exclusion for damage caused to the aircraft by a nuclear attack.

Andreas IOM

In 2012, my insurance mentioned a max total third party liability of x and a separate limit for pax y, being a lot lower. However, according to my broker, the CSL could be used for pax.

My 2013 policy does not make the distinction between third party and pax liability, just mentions a CSP of x. My broker confirmed that x can be used for any kind of third party liability. I am talking a large German insurer here. Is this maybe the latest trend?

Private field, Mallorca, Spain

my insurance mentioned a max total third party liability of x and a separate limit for pax y, being a lot lower.

Naughty of them

However, according to my broker, the CSL could be used for pax.

Not what the policy said, however...

Is this maybe the latest trend?

More likely, IMHO, a widespread realisation that limiting passenger liability to some silly low value is dishonest, especially as most people will never spot it.

Administrator
Shoreham EGKA, United Kingdom

Looks like an 'advertorial' to me - trying to drum up business rather than a genuine piece of reporting.

Interesting point though.

EGLM & EGTN

The writer may be a broker, sure, but I think it's a really valid point and it opened my eyes to a possibly long running scam.

We hear of virtually no 3rd party damage caused by GA (ground "bumps" aside) but loads of passengers do get crippled or killed. There are several pilots not far from where I am based who are known to have been in accidents where a passenger lost legs, etc. I am sure we can all think of well publicised GA crashes where a passenger, or a student, got badly injured.

In the car business this is nowadays taken care of by the law requiring unlimited liability (in the UK, anyway) but in planes not so, and the pilot held responsible could get cleaned out personally post-accident. 100k covers more or less nothing...

Administrator
Shoreham EGKA, United Kingdom

However, according to my broker, the CSL could be used for pax.

Not what the policy said, however...

Isn't CSL by definition (Combined Single Limit) meant to cover both TPL and Passenger Liability?? The policy I am putting in place includes €5m CSL cover

EGPD / OMDW / YPJT, United Kingdom

I agree. The way I read it, the very low limits per passenger seem to have their roots in the ludicriously low limits of liability per passenger that airlines were historically allowed to get away with.

What this tells us is check the fine print, which applies to any insurance policy. Insurers are quite good at structuring policies such as to minimise their exposure to the most common sorts of claims, and doing it in such a way that said limitations are not immediately obvious to the insured.

I still consider it an advertorial though.

EGLM & EGTN

Also I notice that the UK CAA require 3m SDR coverage for War and Terrorism whereas this does not appear to be a separate requirement of EC 785/2004....do people generally have this listed as a seperate line item on their policies? (Other than the EC requirement that TPL covers war, terrorism, hijacking, acts of sabotage, etc...)

EGPD / OMDW / YPJT, United Kingdom
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