Page 21 - World Airnews Magazine May 2020 Edition

AVIATION
INSURANCE

directly arising there from. A general aviation Insurers will often write insurance advice and cover to our aviation clients.
grounding under the current circumstances, for each of these sectors and, to an extent,
which arises from government decree, does losses in one sector will be balanced by WAN: WHAT MAKES DJA AVIATION

not trigger this type of coverage. profits in others. At present, however, STAND OUT FROM THE OTHERS?

Individual aircraft owners should discuss all four sectors have been virtually shut GS: DJA Aviation is SA’s longest-established

their specific situation with their insurance down with a concomitant loss of premium specialist aviation insurance broking

brokers, who will then be able to discuss income for the aviation insurance market. organisation, having been formed in 1976

available options with the Insurers con- Many aviation businesses will likely be by now-retired founder Dennis Jankelow.

cerned. In some cases, the Insurers may unable to recover once the pandemic has All the senior insurance specialists at DJA

agree to reduce coverage or may simply passed and this will create a permanent loss Aviation have been with the firm for in

note the circumstances and review the po- of income to aviation Insurers. All this will excess of 20 years. The company’s sole

sition at the end of the lockdown period, or result in Insurers needing to review their busi- mission is to serve its clients and provide
the expiry of the policy, whichever is sooner. ness plans and it is quite likely that we will see them with the peace of mind they require

Some commercial enterprises may carry further contraction of the aviation insurance in order to achieve their aviation-related

business interruption insurance, but this is market as Insurers elect to withdraw from aims and objectives without suffering

not available from the aviation insurance this class whilst they concentrate their efforts financially in the event of losses occurring.

market and there is some doubt as to the in other, more sustainable, classes. DJA Aviation refers to its mission as The
extent to which Insurers will consider Quite apart from the potential human loss Right Approach and it is a philosophy to

coverage to be triggered by communicable to COVID-19, we are likely to see jobs being which the company and all its 35 directors,
disease pandemics such as COVID-19, given lost in the aviation insurance market, as Insur- brokers and employees are fully committed.

the general requirement that the business ers, brokers and associated service providers DJA Aviation has been responsible for the

interruption should be caused by property are unable to survive, downsize their aviation development of several aviation insurance
damage and, even where a non-damage activities or merge with others. The light at products that remain exclusive to this day

extension for communicable diseases is the end of the tunnel may be an approaching and continues to develop new products

included, this is usually limited to specified train. However, we will ultimately be left with and enhancements for the benefit of its

notifiable diseases where there is an out- a smaller but stronger industry as all but the clients. With strong Insurer-relationships
break at or near to the Insured’s premises, fittest will likely be hit by the train. throughout the South Africa and interna-

resulting in the premises being closed by tional insurance markets, DJA Aviation aims

order of a competent/public authority. WAN: WHAT KIND OF NEW AND to provide insurance programmes for its cli-
INNOVATIVE WAYS HAS THE

WAN: WOULD IT EVER BE POSSIBLE COMPANY EMPLOYED TO GAIN ents that reflect a perfect balance between
Coverage, Cost, Security and Service. Q
TO INSURE AGAINST THIS TYPE OF NEW BUSINESS AND SUSTAIN AND
PHENOMENA? AND IF NOT WHAT SOLIDIFY YOUR
IS THE BEST COURSE OF ACTION ORGANISATION?
AVIATION OWNERS SHOULD TAKE GS: The key element
IN THE CURRENT CIRCUMSTANCES. to grow and sustain NOT YOUR BEST LANDING?
GS: There are no insurance products our business has been
currently available, of which I am aware, that the development and Insure now with
would provide benefits to aircraft owners sustaining of both DJA Aviation.

arising from their inability to operate their our relationships with
aircraft during periods of pandemic or other insurers and equally

general health emergencies. As mentioned, the development

coverage can be restricted to “ground/ of our staff. We see
stored”, at a reduced premium. The best the relationship with

course of action would be to communicate insurers as a partner-

with their insurance brokers and allow their ship, such that we

brokers to advice on possible options and are, to the best of our
negotiate with Insurers on their behalf. ability, able to obtain

the right cover for
WAN: CAN YOU DESCRIBE our clients. With the
THE MARKET THAT YOU FIND substantial changes

YOURSELVES IN, THE CHALLENGES being experienced DJA Aviation is the longest-established aviation insurance
broking specialist in the South African insurance market and a
AND THE POSSIBLE POSITIVE in the entire aviation market leader in developing customised insurance products for

OUTCOMES FOR THE NEAR AND NOT insurance market, we
SO DISTANT FUTURE? consider this a key the aviation industry. We employ more than 30 staff and utilise
this great depth of aviation insurance knowledge, skill and
GS: The immediate challenge facing the differentiator. expertise to manage our clients’ aviation insurance portfolios.

aviation insurance market worldwide is Equally so is the
survival. Whilst insurance is considered an development of

essential industry, most (if not all) business our staff. We are

premises have been closed and staff are continually up skilling

working from home during the lock-downs and training our staff
being experienced in most countries and encouraging new
around the world, particularly US, Europe entrants into the PROUD SUPPORTER OF

THE SOUTH AFRICAN
and the USA. aviation insurance GUIDE-DOGS ASSOCIATION

Currently, all aviation Insurers remain op- broking industry.

erational but there are significant concerns This is mission critical Defining the Right Approach to Aviation Insurance

regarding the future, given the aviation in- in maintaining our

surance market’s reliance upon a viable avi- sustainability, and www.dja-aviation.co.za | Tel: 0800 FLYING
ation industry, whether General Aviation, ensuring we continu- An Authorised Financial Service Provider FSP No. 15808

Airline, Aerospace or, indeed, Space. Major ally provide the best
World Airnews | May 2020
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