Buttino
Whilst that is the wording of Clause 7 of the Flying Order Book, it does not make it clear that there is no insurance in place in respect of loss of the hull of the aircraft.
It suggests, but does not state, that the insurance relates to third party and public liability insurance - and not that relating to the aircraft themselves.
Most reputable flying schools and clubs insure their aircraft fully with third party and public liablity insurance being available to school/club members (hence the temporary membership form or 'blood chit' which is required for all those non-members flying as passengers in school/club aircraft).
FlyBpl's Clause 7 is, to my knowledge, not the usual situation with respect to aircraft/pilot/passenger insurance provisions within the auspices of a flying school or club.
It would be interesting to learn how, for example, a passenger taking a flight in a FlyBpl aircraft could obtain that insurance at short notice prior to a flight on a Sunday? Maybe there is a sister company 'FlyBpl Insurance Services' which provide such insurance cover - I can't see the advert on the website though?