Page 40 - Marine Insurance IC67 EBOOK
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AVIATION INSURANCE
History of Aviation Insurance Insurance, aviation insurance was underwritten by
a number of Indian insurance companies.
Although Aviation Insurance is the latest branch of
General Insurance having originated in the U.K. in However, it was in 1949 that a Standard Lloyd's
the early part of this century, yet there are very Aviation Policy was drafted and began to be used
few records of the early transactions of this class by Lloyd's Underwriters. This lead was followed
of business. However, some scanty evidence is by the Aviation Insurance Officers Association
available that the White Cross Insurance Agency which devised its standard aviation policy in 1954.
was underwriting air-craft risks during the first
decade of this century. In the early days International Union of Aviation Insurers
insurance was confined to fire risk only. Around This Organisation was funded in 1934 by leading
1910 accidental damage cover was offered, aviation underwriters of the U.K. and Europe.
followed by third party insurance.
Modern aviation insurance can be traced to the Application of Basic Principles to Aviation
year 1919 when Lloyd's Underwriters, in Insurance
collaboration with Companies, started to write this Aviation Insurance contracts, like other General
business. This led to the formation of the British Insurance contracts, are governed by the special
Aviation Insurance Group in 1922 which became principles evolved under Common Law and these
famous as British Aviation Insurance Company in relate to insurable interests, indemnity and utmost
1931 consisting of giant insurance Companies good faith.
and Lloyd's underwriters. Similar pools or groups
were formed in the United States. In 1928 the Ownership of aircraft is a clear example of
United States Aviation Insurance Group was insurable interest.
formed followed by Associated Aviation A mortgager, too, has an insurable interest to the
Underwriters. extent of the loan advanced by him on the
security of the property.
Lloyd's aviation underwriters felt the need for a
joint body to deal with their problems of common Insurable interest may arise out of bailment. A
interest and, accordingly, in 1935 they formed the hanger-keeper or a repairer is a 'bailee', who is
Lloyds Aviation Underwriters Association. The responsible to take reasonable care of the aircraft
book of Policy forms and clauses published by in his custody and is liable to make good any
I.A.U.A. are used by many aviation insurance loss caused by his lack of care.
markets, including India.
Insurable interest also arises out of the air
Thus the formation of pools to transact this carrier's legal liabilities for bodily injury to
business was a standard feature of the pioneering passengers or persons on the ground or for
aviation markets of the U.K., U.S.A. and Europe. damage to passengers' baggage or cargo carried,
In India, too, before nationalisation of General and property on the ground.
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