Insurance
 

Hi

Im considering purchasing a share in an aircraft and have been told the insurance covers £3.5M - 3rd party. Nothing else (I havent seen the docs yet and will review this week) but....

If it is only 3rd party - is that normal? What happens if something goes wrong (say engine failure, not my fault) and I land but I write off the aircraft - do I then owe the other syndicate members the value of the remaining shares and if so do I need to get additional insurance to cover this (eg comp) and if so does anyone have any pointers?

Normal? That depends I suppose on what's being insured.

Having bought insurance for touring four seat aircraft for twenty years I've never seen or been offered third party insurance.

But then, you pay your money and take your choice I guess. In an equity owned group for sure you should have comprehensive with the hull covered etc.

I think you'll find that's 3.5m of third party liability cover. Ie if you crash into someone's house and squash their dogs, it covers you for them coming after you for two new Labradors and a new house.

I think you'll find your quote will be fully comprehensive too. Ie, your aircraft is fully covered at the agreed value in the event of a total loss. Read it through and it should be clear.

It's usual for a group member to be responsible for any uninsured losses while the aircraft is in their charge. Most groups will have hull cover, possibly with a high deductible. If the aircraft has a relatively low value then it may make sense to have 3rd party and passenger only insurance, but there must be an agreement as to how losses are covered by the group.

Check out the agreement and if you don't like it and they are unwilling to change then walk away.

Having a personal hull cover would be quite unusual and relatively uneconomical. It would not be covered by a renter's insurance.

Thanks -

I'll check the docs this week, but feeling a little more comfortable now.

EC Regulation 785/2004 made third party liability insurance mandatory and G-INFO shows the minimum cover required for each aircraft.

Checked the docs and it has Hull insurance with a £1k excess - thanks for the responses

As the saying goes...
RTFM!