Lesson Notes By Weeks and Term - Senior Secondary 2

Aviation insurance III

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Term – 2nd Term

Week: 8

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Aviation insurance III

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. List and explain the types of aviation insurance
  2. Highlight factors militating underwriting in the aviation industry

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on aviation insurance

Students pay attention

STEP 2

EXPLANATION

He lists and explains the types of aviation insurance

 

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He further highlights the factors militating underwriting in the aviation industry

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

AVIATION INSURANCE

TYPES OF AVIATION INSURANCE

There are roughly five different types of aviation insurance, that are taken

out individually or in combination.

  1. Public liability insurance/Third party liability

This covers aircraft owners (insured) for accidental injury to or death of

persons, damage that their aircraft does to third party property, such as

houses, cars, crops, airport facilities and other aircraft struck in a collision.

Cover for liability due to sound and pollution damage arising from an

accident involving the aircraft. Liability for damage caused in the air to

another aircraft or their occupants, legal costs incurred with the insurer’s

permission in the defence of any claim. It does not provide coverage for

damage to the insured aircraft itself or coverage for passengers injured on

the insured aircraft.

NOTE: Public liability insurance is mandatory in most countries.

  1. Hull-Loss or damage insurance

This is effected by an aircraft owner or operator against loss or damage to

the aircraft itself. The policy provides cover for the aircraft against

accidental loss or damage from whatever causes while the aircraft is in

flight (commences from the time the aircraft moves forward to take off,

attempting to take off, whilst in the air, and until it completes the landing

run).

  1. Passenger liability insurance

Passenger liability protects passengers riding in the accident aircraft that

are injured or killed. In many countries this coverage is mandatory only for

commercial or large aircraft. Coverage is often sold on a "per-seat" basis,

with a specified limit for each passenger seat.

  1. Combined Single Limit (CSL)

CSL coverage combines public liability and passenger liability coverage

into a single coverage with a single overall limit per accident. This type of

coverage provides more flexibility in paying claims for liability, especially if

passengers are injured, but little damage is done to third party property on

the ground.

5.Ground risk hull insurance not in motion

This provides coverage for the insured aircraft against damage when it is

on the ground and not in motion. This would provide protection for the

aircraft for such events as fire, theft, vandalism, flood, mudslides, animal

damage, wind or hailstorms, hangar collapse or for uninsured vehicles or

aircraft striking the aircraft. The amount of coverage may be a blue book

value or an agreed value that was set when the policy was purchased.

  1. Ground risk hull insurance in motion (taxiing)

This provides coverage while the aircraft is taxiing, but not while taking off

or landing. Normally, coverage ceases at the start of the take-off roll and is

in force only once the aircraft has completed its subsequent landing. Due to

disputes between aircraft owners and insurance companies about whether

the accident aircraft was taxiing or attempting to take-off, this type of

coverage has been discontinued by many insurance companies.

  1. In-flight insurance

In-flight coverage protects an insured aircraft against damage during all

phases of flight and ground operation, including while parked or stored. The

in-flight insurance is an all-rounder. It covers not only any damage that

might occur in-flight but also in every other situation on the ground –

whether in motion or not. That makes it very practical but also more

expensive than only the non-in-motion insurance.

NOTE THAT: Naturally, it is more expensive than not-in-motion coverage,

since most aircraft are damaged while in motion.

 

FACTORS MILITATING UNDERWRITING IN THE AVIATION INDUSTRY

  1. New equipment may change the complexity of a risk e.g. new landing

aids simulator or navigation aids.

  1. Experience of a given type of aircraft.
  2. Pilot experience.
  3. General market condition which may make desired rate commercially

impossible.

  1. The use to which the aircraft will be put.
  2. Each type of aircraft follows an experience curve” as the type is

introduced, used, modified, passed down the line of operators and finally

superseded by more advanced machines.

  1. Geographical limits as they relate to weather, temperature, landing

facilities and communications etc.

  1. Previous claims record of the operator, his general aviation background

and experience.

  1. Maintenance and financial arrangements put in place

EVALUATION:    1. List and explain four types of aviation insurance

  1. Highlight five factors militating underwriting in the aviation industry

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively