Introduction
Aviation risks are unusual because a single incident can generate enormous claims involving passengers, crew, aircraft, cargo and third parties on the ground.
Insurance therefore forms an essential component of aviation risk management.
ICAO identifies aviation liability and insurance as a distinct field involving the Chicago Convention, Montreal Convention and Rome Convention frameworks.
Insurance Is Not the Same as Liability
A critical legal distinction is between the underlying liability and the insurance available to meet that liability.
An airline may be legally responsible even where a coverage dispute exists with its insurer.
Passenger Claims Require Special Attention
International carriage is governed in relevant cases by the Montreal Convention, which addresses passenger injury, baggage and delay liability.
Insurance arrangements should therefore be structured with the applicable liability regime in mind.
Conclusion
Aviation insurance should not be treated as an annual procurement exercise.
Policy wording, exclusions, deductibles, contractual indemnities and international operations must be examined together so that insurance actually responds when the most serious aviation risks materialise.
