Civil liability of the aircraft owner is insured in respect of losses caused to third parties as a result of operation of the following types of aircraft:

• Passenger and cargo airplanes
• Helicopters
• Gliders
• Unmanned aerial vehicles

The operation of aircraft is associated with an increased risk to human health and life, as well as to the property interests of third parties. In this regard, in accordance with the requirements of regulations, this type of insurance is categorized as compulsory insurance. This means that civil liability insurance of the aircraft owner is a necessary requirement for carrying out aviation activities and protection against potential losses associated with the operation of air transport vehicles.

What the insurance covers:

• Losses arising from cargo liability: This includes compensation for losses due to damage to or loss of cargo that has been carried on board the aircraft. If the cargo is damaged or lost during transportation, the insurance will cover these costs.
• Losses related to damage to the health or life of third parties: Includes compensation for damage to the health or life of persons unrelated to the aircraft owner in the event of an accident arising from the operation of the aircraft.
• Losses arising from damage to or destruction of third party property: The insurance will cover financial losses arising from damage to or destruction of property belonging to third parties if this occurs as a result of the operation of the aircraft.
• Costs of prevention of sudden and unforeseen environmental pollution: Includes the costs of measures aimed at preventing or remedying the consequences of environmental pollution caused by an aircraft accident.
• Aircraft wreckage removal costs: The insurance will cover the costs associated with operations to lift and remove aircraft wreckage after an accident.
• Jurisdictional and legal costs: Includes legal costs associated with proceedings and litigation that may arise in connection with an insured event.
• Expert examination costs: Insurance will cover the cost of expert assessments necessary to establish the extent of loss or condition of the aircraft.
• Fines and penalties: Fines and penalties that may be imposed on the aircraft owner as a result of violations of rules or regulations are covered.

Factors affecting the cost of the policy:

• Sum insured (limit of liability): The total limit set in the policy determines the maximum amount for which insurance coverage is provided. The higher the sum insured, the higher the cost of the policy will be.
• Sub-limits for specific types of loss: These are additional limits applicable to specific types of loss, such as cargo damage or damage to third parties. The presence of these sub-limits can increase the cost of the policy depending on their size and scope of coverage.
• Year of construction of the aircraft: The age of the aircraft affects the calculation of the premium. Older aircraft may require more maintenance and carry more risks, which can increase the cost of insurance.
• Type of aircraft: Different types of aircraft, such as passenger, cargo, recreational, etc., have different levels of risk, which affects the price of the policy. For example, cargo aircraft may have different risks compared to passenger aircraft.
• Country of registration of the aircraft: The place of registration, or the flag under which the aircraft is registered, determines the applicable legal and insurance requirements, which may affect the price of the policy.
• Aircraft specifications: Includes number of passengers, cargo capacity, size and other parameters. These characteristics help determine the risk associated with the operation of the vessel and affect the cost of insurance.
• Technical condition of the aircraft: The general condition of the aircraft, including the need for pre-insurance inspections and possible repairs, also affects the cost of the policy. A good condition of the aircraft may reduce the premium, while maintenance problems may increase it.
• Number of aircraft insured by the owner: If the owner insures multiple aircraft, this can change the total cost of the policy. There are often discounts for insuring multiple aircraft.
• Types of losses covered by the policy: A broad range of covered losses, such as collision or pollution damage, can increase the cost of the policy. Narrower coverage may be less expensive.
• Territorial restrictions on aircraft use: The geographical areas in which aircraft are allowed to be used can affect the cost of the policy. International flights may be more expensive than domestic flights.
• Policy deductible: The amount of the deductible, i.e. the amount that the owner of the vessel must cover on their own in the event of an insured event, affects the premium. A higher deductible can lower the cost of the policy, while a lower deductible can raise it.
• Previous loss history: Having frequent or major insured events in the past can increase the cost of the policy. Loss history helps insurers to assess the risks and hence the price of insurance.