Sample of Aviation War, Hi-Jacking And Other Perils Excess And Liability Insurance for Airplanes

 

 

OOOO AIRLINES LIMITED and as may be described in the respective Primary Policies.

OOOO Airlines: XXXXXX

Item 2. Policy Period

From XXXXXXX

To XXXXXX

Both days inclusive Local Standard Time at the address of the Insured with an option to extend at pro rata by up to 6 months.

Item 3. Hazards Covered

The Insured’s legal liability arising out of their aviation operations in respect of the coverage as is afforded by the Extended Coverage Endorsement (Aviation Liabilities) AVN 52E.

Item 4. Limits of Liability (Ultimate Net Loss)

(a) Primary Limit

A combined single limit (bodily injury/property damage) of

USDXXXXXXX any one occurrence and in the aggregate.

(b) Excess Limits of Liability under this Policy

A Combined Single Limit (Bodily Injury/Property Damage) of

USDXXXXXX each occurrence each aircraft.

In the event that the Primary Limits dated in paragraphs marked (a) above are reduced or exhausted this Policy shall apply for limit stated in (b) in excess of the reduced primary limit or as a primary limit if limit (a) is exhausted in its entirety.

Each Insured may reinstate once their highest respective per occurrence sub-limit is exhausted, subject to an overall Policy aggregate limit of USD XXXXXX.

The overall Policy Aggregate hereunder applies over both policies issued to OOOO Airlines Limited (Policy No. XXXXXX) and OOOOO Airlines Limited (Policy No. XXXXXXX)

Item 5. Primary Policy Details and Limits

Primary Insurers :

As described in Primary Policy

Policy Number :

XXXXXXXXXX

Primary Limit :

As stated in Item 4.(a) above.

Item 6. Geographical Limits

As stated in the Primary Policy.

Item 7. Premium for Period

As Arranged

Premium non adjustable and includes automatic additions of aircraft however if Airlines passenger numbers decrease by over 30% due to SARS, Avian Flu or similar type infectious diseases pandemic return premium to be agreed by Insurers.

and payable as follows:

Premium Payment Clause

1. It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments:

Instalment 1: Amount XX.00% Due Date XXXXXXXXX

Instalment 2: Amount XX.00% Due Date XXXXXXXXX

Instalment 3: Amount XX.00% Due Date XXXXXXXXX

Instalment 4: Amount XX.00% Due Date XXXXXXXXX

3. Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Insured. Notice shall be deemed to commence from the date such notice is given by the Insurers.

AVN 6A (Amended) 17.10.96

Item 8. Address for Notices

All notices required to be sent in accordance with the terms and conditions of this Policy shall be sent via the intermediary of:-

XXXXXX

_________________________________________________________________________

WHEREAS the Insured has in force an Aviation Liability Insurance (hereinafter referred to as the “Primary Policy”) containing the Extended Coverage Endorsement (Aviation Liabilities) specified in Item 3 of the Policy Schedule deleting all sub-paragraphs other than (b) of the War, Hi-jacking and Other Perils Exclusion Clause (Aviation) AVN48B.

AND WHEREAS paragraph 3. of the said Extended Coverage Endorsement (Aviation Liabilities) contains a sub-limit as stated in Item 4.(a) of the Policy Schedule (hereinafter referred to as the “Primary Limit”).

NOW this Insurance is to indemnify the Insured against all sums, in excess of the Primary Limit, which the Insured shall become legally liable to pay as damages for bodily injury or property damage caused by an occurrence during the Policy Period arising out of the Hazards Covered stated in Item 3. of the Policy Schedule.

PROVIDED ALWAYS THAT :

1. Liability attaches to the Insurers only after the Primary Insurers have paid or have been held liable to pay the full amount of their respective Ultimate Net Loss as set forth in Item 4.(a) of the Policy Schedule. The limit of the Insurers' liability shall be such amount of Ultimate Net Loss as set forth in Item 4.(b) of the Policy Schedule excess of the limit set forth in Item 4.(a) of the Policy Schedule.

 

2. Notwithstanding the inclusion hereon of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the Insurers' limit of liability as stated in paragraph 1. above.

Exclusions

1. The Insurers shall not be liable to make any payment under this Policy as a result of the inability, refusal or failure to pay of the Primary Insurers for any reason whatsoever, including without limitation, any financial impairment, insolvency or liquidation.

 

2. This Policy does not apply to claims excluded by

 

(a) the NUCLEAR RISKS EXCLUSION CLAUSE AVN 38B;

(b) the NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE AVN 46B applicable as per Primary Policy;

(c) the DATE RECOGNITION EXCLUSION CLAUSE AVN 2000A, with write backs as per the Date Recognition Limited Coverage Clause AVN 2001A/AVN 2002A, but as regards Contingent policies writeback clauses amended in accordance with standard market practice;

(d) the CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE AVN 72

 

(e) the ASBESTOS EXCLUSION CLAUSE 2488 AGM00003

attached to this Policy.

Special Provisions

In the event of the coverage provided under the Extended Coverage Endorsement (Aviation Liabilities) specified in Item 3 of the Policy Schedule contained in the Primary Policy is cancelled or withdrawn for any reason by the primary insurers this Policy is extended to apply as primary insurance to the fullest extent of the coverage provided by the said Endorsement including the Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Primary Policy affords cover for liability to its passengers arising out of its operation of aircraft;

 

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Primary Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft

subject always to the Total Limits stated in Item 4 (b) of the Policy Schedule.

The extension of coverage provided by this Special Provision shall cease at such time as the Insured reinstates coverage under the Primary Policy, said date to be advised to Insurers, and an additional premium, shall be due hereunder for the period this special provision is on risk, subject no losses during the period.

Definitions

1. The term "Ultimate Net Loss" means the amount payable in settlement of the liability of the Insured after making deductions for all recoveries and other valid and collectible insurances, excepting however the Primary Policy, and shall exclude all Costs.

 

2. The term "Costs" means interest accruing after entry of judgement, investigation, adjustment and legal expenses (excluding, however, all office expenses of the Insured, all expenses for salaried employees of the Insured and general retainer fees for counsel normally paid by the Insured).

Conditions

1. Non-Cancellable

 

This Policy is non-cancellable except by mutual agreement between Insured and Insurers hereon, however all cover hereunder in respect of the deletion of sub-paragraph (a) of Clause AVN 48B is automatically terminated

(a) upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved.

 

PROVIDED THAT if an Insured Aircraft is in the air when (a) occurs, then the cover provided by this Policy (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

Notwithstanding the above, if the Insured elects to pay the premium in quarterly instalments then Insurers reserve the right to issue 30 (thirty) days notice of cancellation in the event of non-payment of the due instalment. Such notice shall be given by the Insurers to the Insured via the address set forth in Item 8. of the Policy Schedule.

Also notwithstanding the above, it is agreed that the Insured has the rights to cancel this Policy at pro rata policy terms in the event of ICAO initiative or any similar option being rendered available to the Insured hereon and which they may choose to take up.

2. Incurring of Costs

 

In the event of claim or claims arising which appear likely to exceed the Primary Limit, no Costs shall be incurred by the Insured without the consent of the Insurers.

3. Apportionment of Costs

 

Costs incurred by or on behalf of the Insured with the consent of the Insurers, and for which the Insured is not covered by the Primary Insurers, shall be apportioned as follows:-

(a) Should any claim or claims become adjustable prior to the commencement of trial for not more than the Primary Limit, then no Costs shall be payable by the Insurers.

 

(b) Should, however, the amount for which the said claim or claims may be so adjustable exceed the Primary Limit, then the Insurers, if they consent to the proceedings continuing, shall contribute to the Costs incurred by or on behalf of the Insured in the ratio that their proportion of the Ultimate Net Loss as finally adjusted bears to the whole amount of such Ultimate Net Loss.

 

(c) In the event that the Insured elects not to appeal a judgement in excess of the Primary Limit the Insurers may elect to conduct such appeal at their own cost and expense and shall be liable for the taxable court costs and interest incidental thereto, but in no event shall the total liability of the Insurers exceed their limits of liability as provided for herein, plus the expenses of such appeal.

4. Application of Recoveries

 

All recoveries or payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Insurers, provided always that nothing in this Policy shall be construed to mean that losses under this Policy are not payable until the Insured's Ultimate Net Loss has been finally ascertained.

 

5. Attachment of Liability

 

Liability to pay under this Policy shall not attach unless and until the Primary Insurers shall have admitted liability for the Primary Limit or unless and until the Insured has by final judgement been adjudged to pay an amount which exceeds such Primary Limit and then only after the Primary Insurers have paid or been held liable to pay the full amount of the Primary Limit.

6. Maintenance of Primary Policy

 

It is a condition of this Policy that the Primary Policy shall be maintained in full effect during the currency of this Policy

(a) except for any reduction or exhaustion of the aggregate limits contained therein solely by payment of claims in respect of occurrences during the Policy Period and

 

(b) except as otherwise provided herein,

 

however, failure to maintain the Primary Policy in full effect shall not invalidate cover under this Policy but in event of such failure the Insurers shall only be liable to the same extent as they would have been had the Primary Policy been maintained in full effect.

To the extent of the coverage provided by this Policy, this Policy is subject to the same warranties, terms, conditions, definitions and exclusions (except as regards the premium, the obligation to investigate and defend, the renewal agreement, if any, the amount and limits of liability other than the deductible or self-insurance provision where applicable, AND EXCEPT AS OTHERWISE PROVIDED HEREIN) as are contained in or may be added to the Primary Policy prior to the happening of an occurrence for which claim is made hereunder.

To the extent that the Primary Policy incorporates the provisions of contracts and agreements entered into by the Insured this Policy shall likewise apply.

7. Notification of Claims

 

In the event of an occurrence likely to give rise to a claim hereunder notice shall be given by the Insured to the Insurers via the address set forth in Item 8. of the Policy Schedule as soon as reasonably possible.

8. False or Fraudulent Claims

 

If the Insured shall make any claim, knowing the same to be false or fraudulent as regards amount or otherwise, this Policy shall become void and all claims hereunder shall be forfeited.

9. Law and Jurisdiction

 

This Policy shall be governed by and construed in accordance with the law of Taiwan Republic of OOOO and each party agrees to submit to the exclusive jurisdiction of the Courts of Taiwan Republic of OOOO.

Variation in Risk

Should there be any change in the operation of the Insured which might reasonably be regarded by the Insurers as increasing their risk in degree or frequency, immediate notice thereof shall be given to the Insurers.

Notifications of all additions of aircraft as required to be given under the Primary Policy shall also be given to Insurers hereon.

_________________________________________________________________________

Attachment No.1

NUCLEAR RISKS EXCLUSION CLAUSE

(1) This Policy does not cover:

(i) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss

(ii) any legal liability of whatsoever nature

directly or indirectly caused by or contributed to by or arising from:

(a) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;

(b) the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;

(c) ionising radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

(2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1)(b) and (c) above shall not include:

(i) depleted uranium and natural uranium in any form;

(ii) radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose.

(3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which:

(i) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or

(ii) any person or organisation is required to maintain financial protection pursuant to legislation in any country; or

(iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.

(4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:

(i) in the case of any claim in respect of radioactive material in the course of

carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organisation "Technical Instructions for the Safe Transport of Dangerous Goods by Air", unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;

(ii) this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof;

(iii) in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter Maximum permissible level

of non-fixed radioactive

(IAEA Health and Safety Regulations) surface contamination

(Averaged over 300 cm2)

Beta, gamma and low toxicity alpha Not exceeding 4

emitters Becquerels/cm2

(10-4 microcuries/cm2)

All other emitters Not exceeding 0.4

Becquerels/cm2

(10-5 microcuries/cm2)

(iv) the cover afforded hereby may be cancelled at any time by the Insurers giving seven days' notice of cancellation.

AVN 38B (22.7.96)

Attachment No.2

NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE

1. This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:-

(a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,

(b) pollution and contamination of any kind whatsoever,

(c) electrical and electromagnetic interference,

(d) interference with the use of property;

unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.

2. With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend

(a) claims excluded by Paragraph 1 or

(b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 (referred to below as "Combined Claims").

3. In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:

(i) damages awarded against the Insured and

(ii) defence fees and expenses incurred by the Insured.

4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

AVN 46B (1.10.96)

Attachment No.3

DATE RECOGNITION EXCLUSION CLAUSE

This Policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly):

(a) the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time;

(b) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification;

(c) any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from any act, failure to act or decision of the Insured or of any third party related to any such change of year, date or time;

and any provision in this Policy concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded.

AVN 2000A (14.3.01)

Attachment No.4

CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE

The rights of a person who is not a party to this insurance or reinsurance to enforce a term of this insurance or reinsurance and/or not to have this insurance or reinsurance rescinded, varied or altered without his consent by virtue of the provisions of the Contracts (Rights of Third Parties) Act 1999 are excluded from this insurance or reinsurance.

AVN 72 (9.2.00)

Attachment No.5

ASBESTOS EXCLUSION CLAUSE

This policy does not cover any claims of any kind whatsoever directly or indirectly relating to, arising out of or in consequence of:

1.the actual, alleged or threatened presence of asbestos in any form whatsoever, or any material or product containing, or alleged to contain, asbestos; or

2.any obligation, request, demand, order, or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, neutralize, protect against or in any other way respond to the actual, alleged or threatened presence of asbestos or any material or product containing, or alleged to contain, asbestos.

However, this exclusion shall not apply to any claim caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.

Notwithstanding any other provisions of this Policy, Insurers will have no duty to investigate, defend or pay defence costs in respect of any claim excluded in whole or in part under paragraphs 1 or 2 hereof.

ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.

2488AGM00003

Attachment No.6

SANCTIONS AND EMBARGO CLAUSE

Notwithstanding anything to the contrary in the Policy the following shall apply:

1. If, by virtue of any law or regulation which is applicable to an Insurer at the inception of this Policy or becomes applicable at any time thereafter, providing coverage to the Insured is or would be unlawful because it breaches an embargo or sanction, that Insurer shall provide no coverage and have no liability whatsoever nor provide any defence to the Insured or make any payment of defence costs or provide any form of security on behalf of the Insured, to the extent that it would be in breach of such law or regulation.

2. In circumstances where it is lawful for an Insurer to provide coverage under the Policy, but the payment of a valid and otherwise collectable claim may breach an embargo or sanction, then the Insurer will take all reasonable measures to obtain the necessary authorisation to make such payment.

3. In the event of any law or regulation becoming applicable during the Policy period which will restrict the ability of an Insurer to provide coverage as specified in paragraph 1, then both the Insured and the Insurer shall have the right to cancel its participation on this Policy in accordance with the laws and regulations applicable to the Policy provided that in respect of cancellation by the Insurer a minimum of 30 days notice in writing be given. In the event of cancellation by either the Insured or the Insurer, the Insurer shall retain the pro rata proportion of the premium for the period that the Policy has been in force. However, in the event that the incurred claims at the effective date of cancellation exceed the earned or pro rata premium (as applicable) due to the Insurer, and in the absence of a more specific provision in the Policy relating to the return of premium, any return premium shall be subject to mutual agreement. Notice of cancellation by the Insurer shall be effective even though the Insurer makes no payment or tender of return premium.

AVN 111 01.10.10

SUBJECT TO THE POLICY TERMS, CONDITIONS, LIMITATIONS AND EXCLUSIONS.