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.