Branch covering aircraft hull and liability toward passengers and third parties, governed by the Montreal and Warsaw international conventions.
Aviation insurance covers two main risk segments. Aircraft hull insurance protects the aircraft itself against total loss or physical damage, whether in flight, on the ground or during maintenance operations. Civil liability cover addresses damage caused to passengers, baggage and cargo (passenger and baggage liability) as well as to third parties on the ground (third-party liability). Regarding the international regulatory framework, the 1929 Warsaw Convention established the first rules limiting airline liability. It was replaced and updated by the 1999 Montreal Convention, which applies to international transport and provides for strict liability up to a first threshold (approximately 128,000 SDRs per passenger for bodily injury), above which the carrier may exonerate itself by proving it was not at fault. The cover amounts required are regulated and very high given the liability stakes. The aviation market is organized into pools, notably the Aviation Insurance Pools international, as the unit exposure of a wide-body aircraft exceeds the capacity of any single insurer. Lloyd's is a central player. Drones represent a fast-growing segment with its own civil liability insurance challenges.
An airliner belonging to a low-cost carrier is completely destroyed in a landing accident. The hull policy pays the agreed value of 45 million euros for the aircraft. Passenger liability cover is triggered for the families of 189 victims under the Montreal Convention, and compensation claims exceed 400 million euros, absorbed by the aviation pool.
assurance aviation, aviation insurance, corps d'aéronef, hull aviation, convention de Montréal