All You Need to Know About Aviation Insurance in UAE
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Aviation insurance, also known as aircraft insurance, covers financial losses resulting from damages and losses to cargo or other properties, injuries to people and other liabilities from aviation operations. It protects aviation owners and operators from unprecedented and unforeseen losses.
Who Regulates Aviation Insurance in UAE
In the UAE, General Civil Aviation Authority (GCAA) is the regulatory body that oversees everything related to civil aviation. Thus, GCAA regulates aviation insurance.
Who Needs Aviation Insurance in UAE
According to the rules, every aviation business (owners and operators) operating any aircraft in the UAE airspace must have aviation insurance coverage. In addition, aircraft owners, airlines and airports must meet the specific requirements laid down by GCAA.
GCAA further mandates insurance coverage that includes third-party liability insurance. It covers losses caused by damages and injuries to third parties due to accidents. The coverage amount is calculated based on the maximum take-off weight of the aircraft. Thus, larger aircraft require higher coverage amounts for flying in the UAE.
Types of Aviation Insurance
Different aviation insurance types are available depending on the insurer. The major ones are discussed.
- Hull Insurance
- Passenger Liability Insurance
- Public Liability Insurance
- In-Flight Insurance
The hull insurance policy covers damages caused to the aircraft. It is important to note that hull insurance is usually applicable when the aircraft is not in motion. Thus, damages caused due to fires, natural disasters, theft, crimes and wind are covered. Always consult with the insurance providers about what exactly is covered under the policy.
This type of aviation insurance policy covers damages that occur due to passenger injuries and in the event of passenger death. The majority of aviation companies opt for this insurance type. Today, many insurance companies offer liability coverage for passenger cargo too.
Also known as third-party liability insurance, the policy covers damages caused to third parties that can include other aircraft, workshops, cars, houses, properties etc. It is mandatory in the UAE.
In-flight insurance is the most comprehensive and at the same time expensive insurance type. It covers all types of damages and losses, irrespective of whether the aircraft is in motion or not.
Aviation Insurance Premiums
Aviation insurance premiums are higher than other insurance types in the UAE. This is because of the high risks involved in aviation operations. The premium cost depends on the different factors listed below.
- Aircraft Type
- Pilot Experience
- Number of Flights
- Airport Location
Aviation insurance is an important part of the aviation industry in the UAE. Therefore, aviation business owners must choose only an insurance company licensed by the Insurance Authority. The insurer must meet the specific requirements to provide coverage for aviation risks.
Crisecure is one of the leading corporate insurance brokers in the UAE, offering excellent insurance solutions to countless clients in the region. For more details, contact us today.