A record of any incidents during training should be kept, including a signed statement of what happened in the student's own words, as part of the student's progress report; and for any investigation that may take place by the insurance company, air safety investigators, CASA/CAA etc.
If the pilot has been prosecuted for being reckless or negligent etc, there will of course be a permanent record with the licencing authorities.
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[This message has been edited by Charlie Foxtrot India (edited 20 May 1999).]