Get to know Third Party Legal Liability Insurance & Passenger Legal Liability Insurance

Third Party Legal Liability Insurance and Passenger Legal Liability Insurance are two insurance products that are part of aviation insurance.  Although classified as a newcomer in the world of insurance, this aviation insurance is very rapidly developing along with the development of civil aviation and auto space aviation.  No wonder flight insurance has many types of insurance products.

          As the name implies, third party legal liability insurance is an aviation insurance product that covers the risk of damage or loss suffered by third parties.  Meanwhile, passenger legal liability insurance is an aviation insurance product that covers the risk of damage or loss experienced by passengers.

A. Third Party Legal Liability Insurance

          This type of insurance is required by the aircraft operator to provide the into about indemnity for amounts that are likely to be legally obliged to be paid in connection with bodily injury or death experienced suddenly by a third party. It is also likely that the damage to property belonging to third parties is caused directly by the aircraft operated by the operator concerned which is caused directly by objects, including people who fall from the aircraft.

          This type of insurance is usually covered together with hull insurance over the same aircraft under the same policy. Therefore, against third party legal liability insurance also applies general exclusions as in hull insurance.

          In determining this insurance premium, a normal assumption applies from the insurer where the heavier the aircraft, the greater the loss/damage that can be caused. Therefore, the premium for third party legal liability insurance is generally fixed based on the weight and size of the aircraft in question.

          Third party legal liability Insurance has an exception from the claims or claims arising from the following: Firstly, bodily injury, death or loss suffered by the director or employee of the insured or partner in the insured's business that occurs when these other persons are performing job duties for the insured.

          Secondly, bodily injury, death or loss suffered by the crew while the crew is on duty in the operation of the aircraft concerned. Thirdly, bodily injury, death or loss suffered by the passenger or the passengers when the passenger or the passenger is entering, being in, or exiting the aircraft concerned. Fourthly, loss or damage to property belonging to or under the supervision of the insured.

          In addition, third party legal liability insurance usually also excludes warranties against claims or claims arising from noise, vibration, contamination/pollution, electrical disturbances, or electromagnetism, unless they occur due to an event of collision, fire or detonation or an emergency when the aircraft in question is in a state of flight that causes abnormal flying operations.

          This insurance has a limit of indemnity each accident for bodily injury and damage to property combined.  With the said limit of indemnity, for coverage of third party legal liability concerned, the responsibility of the insurer in any accident with bodily injury (including death) of the third party shall not exceed the limit of indemnity listed in the policy or policy schedule.

          In addition, the insurer is also responsible for reimbursing the costs of the case incurred by the insured party with the written consent of the insurer in defending the lawsuit addressed to the insured in connection with losses suffered by third parties, the reimbursement limit for the costs of such a case is regulated in the policy.    

B. Passenger Legal Liability Insurance

          This type of insurance is required by the aircraft operator to provide him with indemnity for amounts that he is likely to be legally obliged to pay as compensation in connection with bodily injury (including death) that occurs suddenly to passengers when entering, being in, or exiting the aircraft in question. In addition, there is also loss or damage to the passenger's baggage and personal belongings that occurred due to an accident experienced by the aircraft.

          As with third party legal liability insurance, passenger legal liability insurance is also usually closed together with hull insurance over the same aircraft under the same policy. The amount of premium for passenger legal liability insurance is usually determined by the insurer by considering, among others, certain revenue passenger miles (RPM) which is usually twelve months the volume of passenger miles in the aircraft concerned. In addition, it also pays attention to the limit of liability in respect of any one passenger requested by the light. 

          Passenger legal liability insurance also has exclusion, namely not guaranteeing bodily injury (including death) or losses suffered by the director or employee of the insured or the insured's business partner when these people are performing duties for the insured. The crew of the aircraft concerned while on duty in the operation of the aircraft was also included in the exclusion.

          This insurance has a limit of indemnity each person each aircraft/accident in terms of bodily injury and a limit of indemnity each person each aircraft/accident in terms of baggage and personal article. Thus, in any accident experienced by an aircraft and causing bodily injury to the passengers and loss of the passenger's personal baggage/belongings, the responsibility of the insurer to each passenger will not exceed the limit.