000 Aviation Insurance

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AVIATION INSURANCE- ALLIANCE INSURANCE BROKERS

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INDIAN AVIATION SCENE India Aviation Insurers / Premium 2008-09

8862

6161

2417

1313

1

Oriental

ICICI

New India

National

Bajaj

United

Reliance

IFFCO

HDFC

Insu

rer

Premium INR cr

Non-Scheduled Operators

47

24

11

9

24

64

29

10

8

150

New Delhi

Mumbai

Bangalore

Chennai

Others

Loca

tions No. Of Operators

No of aircraft

Total Operators: 115

No. of Registered Aircrafts in India

1,030

257

61

39

23

16

5

1

Aircraft

Helicopter

Glider

Ultralight

Hang Glider

Balloon

Experimental

Motor Glider

Type

Total Aircrafts: 1432

Scheduled Operators

11388

8324

21201919

87

522

NACILJet

KingfisherJetLite

Airline Allied ServicesAir India Charters

SpiceJetInter Globe

Blue DartGo Air

ParamountMDLR Airlines

Jagson Airlines

Airl

ine

No. of Aircrafts

Total Operators: 13Total Aircrafts: 411

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KEY FEATURES OF AVIATION INSURANCE

One of the most specialized fields in Insurance – Underwriting & Claims Handling

Losses can be catastrophic in nature Losses have cost insurers worldwide hundreds of millions in dollars No single insurer has resources to retain a risk the size of a large

airline, or even a substantial proportion of such a risk Thus a large portion of the risk is placed in the Reinsurance

market… typically this involves Lloyds Syndicates, European Pools, ROW and US Pools, Bermuda Specialty Writers, etc.

On account of Reinsurance as also due to its specialized nature….. Aviation Insurance is largely broker driven

Specialized aviation insurance brokers play a key role in makingavailable the best terms to clients

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AVIATION INSURANCE

Aviation Hull All Risk (Loss or Damage to Aircraft) Aviation Spares All Risk Aviation Hull (War and Allied Perils) Aviation Hull Deductible Aviation Legal Liability to 3rd Parties (Other than Passengers) Aviation Legal Liability to Passengers Aviation Loss of License (Pilots)

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Aviation Hull All Risk (Loss or Damage to Aircraft)

Covers Loss or Accidental Damage to Aircraft whilst flying or on ground

Provides for replace or repair on account of loss or damage to Aircraft including disappearance if Aircraft is unreported for 30 days after commencement of Flight

Provides for reasonable recovery and emergency expenses incurred for immediate safety of aircraft consequent upon damage

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Aviation Spares All Risk

Covers loss or damage to spares, tools, equipments and supplies owned by the insured or the property for which the insured is responsible whilst on ground or in transit by land, sea, air including in own aircraft or whilst on the premises of others for storage only.

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Aviation Hull (War and Allied Perils)

Provides cover for loss or damage to property (aircraft and spares) arising out of WAR AND ALLIED PERILS

These risks are excluded from the Hull (All Risk) policies and broadly include the following: War, Invasion, Hostilities, Civil War, Rebellion, Attempted Coups Strike, Riot, Civil Commotion or Labour Disturbances Sabotage Hijacking (Attempted or Otherwise) or Seizure of Control Acts for Political or Terrorist purposes Confiscation, Naturalization, Detention, etc., for the use of any Government or Public

Authority

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Aviation Hull Deductible

Airlines at times have to bear a proportion of loss due to application of a deductible under All Risk Policy, which may impose considerable financial difficulty on the insured.

Therefore operators insure part of their deductibles under this kind of insurance.

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Aviation Legal Liability to 3rd Parties (Other than Passengers)

Covers sums which an Airline becomes legally liable to pay as compensatory damages

In respect of accidental bodily injury and or accidental property damage

Must be caused by the Aircraft or by any person or object falling from therefrom

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Aviation Legal Liability to Passengers

Covers sums which an Airline becomes legally liable to pay as compensatory damages in respect of :

Accidental Bodily Injury (fatal or otherwise) to passengers while entering, on board or alighting from the Aircraft

Loss or Damage to baggage or personal articles of passengers arising out of accident to the aircraft

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KEY AVIATION INSURANCE CLAUSES

Buyback of AVN 48B for Aviation LiabilitiesExtended Coverage Endorsement (Aviation Liabilities)AVN 52E

Buyback of AVN 48B for SRCC or Labour Disturbances, Malicious Act or Act of Sabotage and Hijacking (Aircraft Hull only)

Extended Coverage Endorsement (Aircraft Hull)AVN 51

Standard Exclusion for War / Hi-Jacking / Other Perils in AVN 1CWar, Hi-Jacking and Other Perils Exclusion ClauseAVN 48B

Buyback of AVN 46B Exclusion for Noise / Pollution/ Other PerilsNoise Coverage PolicyAVN 47

Standard Exclusion for Noise / Pollution/ Other Perils in AVN 1CNoise / Pollution / Other Perils ClauseAVN 46B

Standard Exclusion for all Nuclear Risks under AVN 1CNuclear Risk Exclusion ClauseAVN 38B

Endorsement to settle Passenger Liability on Voluntary Basis regardless of Legal Liability of Insured

Passenger Voluntary Settlement EndorsementAVN 34A

Covers Landing and Taking Off of the Insured Aircraft on landing grounds other than licensed airfields

Unlicensed Landing Ground Suitability ClauseAVN 23A

Covers Transporting Costs incurred in relation to an aircraft sustaining damage. Transporting Costs includes cost of removing the aircraft to a repair site, transporting labour/replacement parts/material/equipments, and returning the aircraft from the repair site to the airfield nearest to the place of accident

Transportation Costs ClauseAVN 11A

Provision for Payment of Premium in installmentsDeferred PremiumsAVN 5A

Base Policy Wordings for General Aviation Insurance covering Loss or Damage to Aircraft and Legal Liability to Passengers and Third Parties.London Aircraft Insurance PolicyAVN 1C

RemarksNameClause No.

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KEY AVIATION INSURANCE CLAUSES ……contd

Provides Cover for any reasonable expenses incurred by Insured for Search and Rescue operations, Runway Foaming, attempted or actual raising / removal / disposal or destruction of the wreck of an aircraft and in respect of any public enquiry or enquiry by the Civil Aviation Authority or any other relevant Authority.

Supplementary Payments ClauseAVN 76

Extends Passenger Liability Coverage to Pilots of the AircraftPilot Indemnity ClauseAVN 74

Extends Passenger Liability Coverage to Pilots and Operational Crew of the AircraftLiability to Pilots and Crew ClauseAVN 73

Provisions of Contracts (Rights of 3rd Parties) Act 1999 under which the rights of a 3rd party to enforce terms of this insurance or reinsurance and / or not to have this insurance or reinsurance rescinded, varied, or altered without his consent are excluded

Contracts (Rights of 3rd Parties) Act 1999 Exclusion ClauseAVN 72

Provides Cover for any reasonable expenses incurred by Insured for Search and Rescue operations for an Aircraft determined to be missing and unreported.

Search and Rescue Extension ClauseAVN 62

For all claims adjusted on the basis of Total Loss Insurers shall pay to the Insured the Agreed Value of the Aircraft as stated in the policy schedule less applicable deductible. This does not apply to claims arising in respect of partial loss or damage where Insurers retain the right to repair, replace.

Agreed Value ClauseAVN 61

Extension to cover Insured's legal liability for damages sustained by any person on account of false arrest, detention, restraint, imprisonment, malicious prosecution, wrongful entry, eviction, publication or utterance of libel or slander, incidental medical malpractice error by a medical professional performing medical services on behalf of the Insured while providing emergency medical relief.

Personal Injury ExtensionAVN 60

RemarksNameClause No.

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Excludes all Asbestos related claimsAsbestos Exclusion Clause2488 AGM 00003

Hull War Buyback WordingsAviation Hull "War and Allied Perils" PolicyLSW 555D

Coverage under the policy to continue regardless of any act or omission which results in a breach of any air navigation or airworthiness orders or requirements issued by any competent authority provided that the Insured has not caused, contributed or knowingly condoned the said act or omission.

Breach of Air Navigation Regulation ClauseAVN 94

Offers reasonable settlement in respect of loss or damage to crops and / or other property caused by trespassers following a crash or forced landing of the Aircraft, regardless of legal liability of the Insured

Trespassers Cost ClauseAVN 91

Extension to pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical, ambulance, hospital, professional nursing, repatriation and funeral expenses to or for each person who sustains BI, sickness or disease caused by accident

Medical and Related Expenses Inclusion ClauseAVN 80

Provides cover for all reasonable costs, expenses or expenditure for the removal of the Aircraft to the nearest suitable take-off area in the event that the aircraft makes a forced landing in any place where subsequent take-off is impossible

Forced Landing ClauseAVN 78

Does not reject any claim on the grounds that the Aircraft was used in a place or in a manner or by a person not permitted under the terms of the policy provided such use was not authorised by the Insured and that the Insured had taken reasonable precautions to prevent such unauthorised use.

Unauthorised Use ClauseAVN 77

RemarksNameClause No.

KEY AVIATION INSURANCE CLAUSES ……contd

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Aviation Loss of License & Personal Accident Cover for Pilots

Provides coverage if a pilot loses his License to Fly on medical grounds

Permanent Loss of License….. Lumpsum Payout Temporary Loss of License….. Smaller Periodic Payouts Personal Accident Cover ….designed to pay out a

lumpsum on account of Death or Disablement

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OUR ROLE IN AVIATION LOSS OF LICENCE INSURANCE

Insured approximately 200 pilots for their Loss of License (LOL) Insurance in 2008-09.

Duly appointed broker for: The Society for Welfare of Indian Pilots (‘SWIP’ - Jet Airways Pilots) The Indian Commercial Pilots Association (‘ICPA’ - Indian Airlines Pilots) The Indian Pilots Guild (‘IPG’ - Air India Pilots).

First in the country to offer an individual pilot a cover of upto Rs 1.00 crore under LOL.

Key features of the LOL Insurance on offer through us: Provides compensation on account of PMU / TMU / Death / Disablement. Maximum Capital Sum Insured upto Rs 1 crore. Maximum Capital Sum Insured of Rs 1 crore offered upto 55 years. Lowest Premium Rates in the market. Lowest Cooling Period of 45 days. Minimum documentation for submitting proposal.

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MEDIA COVERAGEAlliance Insurance Brokers was featured in the Mumbai Edition of

The Financial Express dated Jan 5, 2009. The article is reproduced below.

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NON AVIATION INSURANCE REQUIREMENTS

An Organization also requires following additional insurance to protect its assets, employees, key management personnel as part of its risk mitigation measures:

Employee Benefits Insurance Group Health (Mediclaim) Group Personal Accident

Property Insurance (Non Aviation)

Directors and Officers Insurance

Kidnap Ransom and Extortion Insurance

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ABOUT ALLIANCE INSURANCE BROKERS

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ALLIANCE INSURANCE BROKERS Alliance Insurance Brokers is an Insurance Broking House set up in 2003 by Mr. S.V. Thakkar.

Registered with the Insurance Regulatory and Development Authority of India (‘IRDA’) as a Direct Insurance Broker bearing License No. 217.

Presence in Mumbai, Pune and Chennai.

Licensed to deal with all insurance companies in India, both in the Life and Non-Life insurance segments.

Most preferred Insurance Broker when it comes to Specialty Lines such as Media / Aviation / Liability risks.

Significant expertise in arranging re-insurance support for our clients.

First to offer Media Liability Insurance in India to our clients. We have insured more than 50 (Fifty) Risks on Media Liability in the past one year.

Our ability to deal with all Insurers in the country and with Re-Insurers worldwide, enable us to obtain the best deals for our clients, both in terms of coverage and pricing.

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KEY MANAGEMENT PERSONNEL

1. Mr. S.V. Thakkar, C.E.O (B.E Mechanical, DBM, AIII)- Worked with United India Insurance Co. Ltd. for 23 years & with

IFFCO-TOKIO General Insurance Co. Ltd. for 3 years.

2. Mr. Aatur Thakkar, Director (B. Com, C.A.)- Passed the Composite Insurance Brokers Examination & Trained

in Reinsurance at The Chartered Insurance Institute, London

3. Mr. O.T. Ghurka, Technical Head (B.E. Mechanical)- Worked with Tariff Advisory Committee for 27 years.

4. Mr. Tapas Nandi, President

B.E. (Electrical), MBA (Finance) & A III; Worked with United India Insurance Co. Ltd. for 17 years & Royal Sundaram Alliance Insurance Co. Ltd. For 8 years

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Our Media & Sports Clients

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Our Aviation and Other Clients

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CONTACT DETAILS

ALLIANCE INSURANCE BROKERS PVT. LTD.

Add: 205, 2ND FLOOR,VIRESHWAR CHAMBERS,SHAAN CINEMA COMPOUND,M.G. ROAD, VILE PARLE(EAST),MUMBAI 400057.

Tel: 91 22 6739 0900 6739 0910

Fax: 91 22 6739 09196739 0918

Email: [email protected]

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THANK YOU