Page 43 - Marine Insurance IC67 EBOOK
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The Insurance Times
compound annual growth rate (CAGR) of 18 globally as well as Indian context:
per cent, and was worth US$ 5.6 billion in
2008. Aviation insurance and general policy
structure
l The Centre for Asia Pacific Aviation (CAPA)
has forecast that domestic traffic will increase Aviation Insurance
by 25 per cent to 30 per cent till 2010 and Aviation Insurance is most specialized insurance
international traffic growth by 15 %, taking the and is written overseas only. The main role of
total market to more than 100 million Indian Insurer is to underwrite the risk in India and
passengers by 2010. then reinsure with the western world, normally UK
market. The reason of low acceptance of the
l India's civil aviation passenger growth, business in India is the amount of probable loss,
presently at 20 per cent, is one of the which this class of business may give. Air
highest in the world. By 2020, 400 million collusion between two jets results not only in
Indian passengers are likely to be aircraft damage but may also in injury or loss of
airborne. life to passengers and other liabilities. The amount
thus created sometimes is so huge that it may
l By 2020, Indian airports are expected to wipe out the reserves of whole Insurance
handle more than 100 million passengers Company.
including 60 million domestic passengers
and around 3.4 million tons of cargo per There may be following types of liability in
annum. Aviation Insurance
l Moreover, significant measures to propel l Aircraft damage
growth in the civil aviation sector are on l Passenger liability as per Warsaw convention/
the anvil. The government plans to invest
US$ 9 billion to modernize existing Montreal convention as the case may be
airports by 2010. The government is also l Liability to third Party at ground
planning to develop around 300 unused l Liability to Crew and employees
airstrips. l Product Liability
l Investment opportunities of US$ 110 billion Aviation insurance has come out with different
envisaged up to 2020 with US$ 80 billion in solutions for each and some other risks for
new aircraft and US$ 30 billion in development different interested parties. Main types of
of airport infrastructure. Insurance Cover available are as under-
l Associated areas such as maintenance repair Aviation Insurance Cover
and overhaul (MRO) and training offer high Hull All Insurance Risk Policy
investment potential. A report by Ernst & u Hull insurance (Commercial Airliners)
Under this form of cover, the insurers undertake to
Young says the MRO category in the aviation pay for accidental loss of or damage to the
aircraft. Coverage also includes disappearance of
sector can absorb up to the aircraft after the commencement of the flight.
US$ 120 billion worth of
investments by 2020.
Hull Insurance
As aviation sector contains
huge growing and development potential, it
also raises the risk factor as well, so big
players are looking tremendous business
opportunity. Now we are going to discuss
about general policy structure available
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