“CASCO” aircraft insurance: All Risks / Total loss/ War risk

Obsidian Broker, specialising in aviation legislation and damage instrumentation, is providing consultancy and technical support as well as insurance products. Our partners are in the aviation industry, military units, aircraft manufacturers, airlines, air-clubs or private owners.

In the case of extended budgets, aviation insurance and reinsurance have international coverage and the highest standards, established by a relatively standard practice.

Aviation has experienced an incredible expansion in the last 60 years. Various monitoring portals, which count flights worldwide, report a number between 10,000 and 16,000 aircraft that are in flight at any given time at all the world. The modernisation of the air fleets favoured the increase of flight hours, the cargo value and the number of passengers carried by the airlines, forcing operators and airlines to develops complex operational, security and risk transfer strategies.

A number of international conventions set air transport standards. From the Tokyo Convention of 1963, which deals with criminal offences and any other actions that may compromises aircraft safety and on-board discipline, to the Convention signed in Rome in 1953, which regulates the liability of operators towards third parties. The European legislation also has strict provisions regarding the obligations of Community air carriers towards all types third parties who could be injured on board an aircraft or during any embarkation operation or landing.

Following all these meetings, a general framework of common policies in the field aviation transport was established, which defines the minimum levels of insurance and regulates liability operators to passengers, baggage, cargo and third parties. It is also very strictly defined and their obligation to cover specific risks in the air business, including those related to acts of war, terrorism, embezzlement, acts of sabotage, unlawful seizure of aircraft and civil rebellion.

ALL RISKS. Adapted to the particularly strict requirements of the aviation industry, the CASCO aircraft policy meets the needs of all categories of beneficiaries, from airlines, airports, operators air and general aviation, to aircraft or component manufacturers. This policy is also addressed to air-clubs, military aviation units and aircraft owners private transport. This type of policy also covers helicopters. CASCO policy insure the aircraft for total damage, partial damage or disappearance, but also for damage to the aircraft body parts, components or equipment.

WAR RISK. Some airlines operate flights in areas with unstable political climate and grade high risk of war, situations which are usually excepted in the case of general policies. But positive statistics on air transport safety, which a recorded a relatively low level of losses recently, along with increased competition contributed to the significant reduction in insurance premiums since 2004.

In partnership with international companies with high rating and experience, Obsidian Broker offers policies with special clauses that provide coverage to an aircraft for events that are directly related to or indirect contact with air piracy, war, invasion or other enemy hostilities. This type of insurance covers both people and objects in the aircraft and the aircraft itself. The premium varies depending on the expected stability of the countries in which the aircraft will fly.

Request a custom analysis by filling out the form below!