Insurance Policy Analysis

This essay dwells on the insurance company’s liability on various losses based on the Non-owned Aircraft policy provided.

1. When the aircraft is damaged beyond economical repair, the insurance company will pay $ 105,000 to purchase a replacement aircraft. This is accounted for in coverage B- Non-owned aircraft physical damage, and the compensation lies within the $ 200,000 limit purchased(Masutti, 2018).
2. The medical expense of $20,000 incurred by the passenger who is a friend will not be paid. This is discussed in part two- exclusions external transportation of persons or property will not be compensated.
3. The medical expense of $18,000 will be compensated in both instances, as stipulated in coverage A.
4. The $20,000 medical expense incurred by a co-worker in the flight will be fully compensated. The policy under coverage A makes the co-worker legally liable for compensation.
5. $500 will be paid for each of the laptop computers damaged during the occurrence. Laptop computers will not be fully compensated. They are subject to the limitation in part 2- exclusions section where a maximum of $500 is paid for the loss of passenger’s personal effects.
6. When the flight’s purpose was to identify herds of elk, the insurance company will have no liability for damage to the aircraft. The insurance policy does not apply when non-owned aircraft is used in connection to spotting animals.
7. Similarly, the insurance company will not be liable for passenger injuries as part 2 insurance policy excludes compensation when the aircraft is used for spotting animals.
8. The insurance company will have no liability for damage to the plane. Part 2- Exclusions section states that the insurance does not apply to claims occasioned by pollution or contamination of any kind and interference with the use of the property.
9. The insurance company will not be liable for passenger injuries since the loss is associated with interference with the use of the property.
10. Liability to damage the aircraft will be lost since the pilot in command doesn’t fulfill its endorsement(BLAIS AVIATION INSURANCE SERVICES, 2020).
11. The insurance company will have no liability for passenger injuries due to breach of the pilot’s approval for non-owned aircraft.

Works Cited

BLAIS AVIATION INSURANCE SERVICES. (2020). INSURANCE FOR USE OF NON-OWNED AIRCRAFT. Retrieved from BLAIS AVIATION: https://cdn.ymaws.com/www.iiah.org/resource/resmgr/imported/Insurance%20for%20Non%20Owned%20Aircraft.pdf

Masutti, A. (2018). Aeronautical product liability insurance and recent development. FrancoAngeli. Retrieved from https://www.francoangeli.it/riviste/Scheda_rivista.aspx?IDArticolo=63096