AIRCRAFT POLICY
AVN-2005/RSA (amended)
In Consideration of the payment of the premium by or on behalf of the Insured (named in the Schedule) prior to the inception date and the Insured having by proposal or declaration, which shall form the basis of this insurance and are deemed to be incorporated herein, applied to the Chartis (hereinafter called the Insurer) for the insurance hereinafter set out, the Insurer agrees subject to the terms, conditions, Warranties, Exclusions, Deletions, Definitions, Clauses and limitations contained herein or endorsed hereon, to indemnify or compensate the Insured for any physical loss, damage or liability as provided for in the policy but only in respect of an accident (as defined) occurring during the Period of Insurance as stated in the Schedule hereto.
Specific exceptions, conditions and provisions shall override general exclusions, conditions and provisions.
Signed at Boksburg this Monday, 16 November 2009.
For and on behalf of the
Manager
SECTION I
LOSS OF OR DAMAGE TO AIRCRAFT
1. COVERAGE
(a) The Insurer will at its option pay for, replace or repair accidental loss of or damage to the Aircraft described in the Schedule hereto arising from the risks covered as stated in the Schedule hereto, including disappearance if the Aircraft is unreported, missing or its whereabouts unknown for fifteen days after the commencement of Flight, but not exceeding the amount insured as stated in the Schedule hereto and subject to the amount to be deducted shown below in paragraph 3 (iii).
If the Aircraft is insured hereby for the risks of Flight , the Insurer will, in addition, pay reasonable emergency expenses necessarily incurred by the Insured for the immediate safety of the Aircraft consequent upon damage or forced or emergency landing up to ten per cent (10 %) of the amount insured as stated in the Schedule hereto subject to a maximum of R50,000 or as shown in schedule of insurance.
Wear and Tear
Breakdown
Modifications
or Inspections
2. EXCLUSIONS APPLICABLE TO THIS SECTION ONLY
The Insurer shall not be liable for:
(a) Wear and tear, deterioration, breakdown, defect or failure howsoever caused in any Unit of the Aircraft and the consequences thereof within the Aircraft and or any Unit;
(b) Damage to any Unit by anything which has a progressive or cumulative effect but damage attributable to a single recorded incident is covered under paragraph 1(a) above;
(c) Any expense or loss incurred in connection with or directly arising out of the replacement of any undamaged part or parts or Unit of the Aircraft which, in terms if Service Bulletins and/or Air Navigation Regulations and or Airworthiness Directives and/or orders and requirements issued by any competent authority, is required to be repaired or replaced at the time that the repair or accidental damage to the Aircraft is carried out.
However accidental loss of or damage to the Aircraft consequent upon 2(a) or (b) above is covered under paragraph 1(a) above.
Dismantling
and repairs
Payments or
replacement
Amounts to
be deducted
from claims
Engine
No abandonment
Other
Insurance
3. CONDITIONS APPLICABLE TO THIS SECTION ONLY
(i) If the Aircraft is damaged:
(a) No dismantling or repairs shall be commenced without the consent of the Insurer except whatever is necessary in the interests of safety, or to prevent further damage, or to comply with orders issued by the appropriate authority;
(b) The Insurer will pay for the repairs and transport of labour and materials by the most economical method unless the Insurer agrees otherwise with theInsured.
(ii) If the Insurer exercises its option to pay for or replace the aircraft:-
(a) The Insurer may take the Aircraft (together with all documents of record, registration and title thereto) as salvage;
(b) The cover afforded by this Section is terminated in respect of the Aircraft even if the Aircraft is retained by the Insured for valuable consideration or otherwise;
(c) The replacement Aircraft shall be of the same make and model and in reasonably like condition unless otherwise agreed with the Insured.
(iii) There shall be deducted from each claim under paragraph 1 (a) of this Section:
(a) the amount specified in the Schedule hereto and
(b) such portion of the Overhaul Cost (hereinafter defined) of any Unit repaired or replaced as the used time bears to the Overhaul Life (hereinafter defined) of the Unit;
(iv) Any claim in respect of an Engine is restricted to loss or damage caused by theft, lightning, flood, outbreak of fire external to the engine or by sudden and unexpected impact with a foreign object requiring immediate withdrawal of the Engine from service.
(v) Unless the Insurer elects to take the Aircraft as salvage the Aircraft shall at all times remain the property of the Insured who shall have no right of abandonment to the Insurer. The fact that the Insurer has dealt with the Aircraft in any way whatsoever shall not be construed in such manner so as to warrant the conclusion that the Insurer has made an election in terms of this Policy.
(vi) No claim shall be payable under this Section if other insurance which is payable in consequence of loss or damage covered under this Section has been or shall be effected by or on behalf of the Insured without knowledge or consent of the Insurer.
SECTION II
LEGAL LIABILITY TO THIRD PARTIES (OTHER THAN PASSENGERS)
1. COVERAGE
The Insurer will indemnify the Insured for all sums which the Insured shall become legally liable to pay, and shall pay, as compensatory damages (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or otherwise) and accidental damage to property caused by the Aircraft or by any person or object falling therefrom.
Employees
and others
Operational
Crew
Passengers
Property
Noise, Pollution
and Other Perils
Exclusion Clause
2. EXCLUSIONS APPLICABLE TO THIS SECTION ONLY
(i) The Insurer shall not be liable for claims arising from:
(a) Injury (fatal or otherwise) or loss sustained by any director or employee of the Insured or partner in the Insured’s business whilst acting in the course of his employment with or duties for the Insured;
(b) Injury (fatal or otherwise) or loss sustained by any member of the flight, cabin or other crew member whilst engaged in the operation of the Aircraft or while such crew member is any way engaged in his capacity as such;
(c) Injury (fatal or otherwise) or loss sustained by any passenger whilst entering, on board, or alighting from the Aircraft;
(d) Loss or damage to any property belonging to or in the care, custody or control of the Insured.
(ii) This Policy does not apply to 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. Nothing in this paragraph shall override General Exclusion 9.
Limits
3. LIMITS OF INDEMNITY APPLICABLE TO THIS SECTION ONLY
The liability of the Insurer under this Section shall not exceed the amount stated in the Schedule hereto. The Insurer will defray, in addition, any legal costs and expenses incurred with its written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claims exceed the limit of indemnity then the liability of the Insurer in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the limit of indemnity bears to the amount paid for compensatory damages.
SECTION III
LEGAL LIABILITY PASSENGERS
Documentary
Precautions
Effect of non-
compliance
Flying
Instruction
1. COVERAGE
The Insurer will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay, and shall pay, as compensatory damages (including costs awarded against the Insured) in respect of:
(a) Accidental bodily injury (fatal or otherwise) to passengers whilst entering, on board, or alighting from the aircraft and
(b) Loss of or damage to the baggage and personal articles of passengers arising out of an Accident to the Aircraft.
Provided always that
(i) Before a passenger boards the Aircraft for a flight for reward including flights being conducted in terms of a licence permit or authority held by the Insured duly issued by the competent authority of the country in which the Aircraft is registered authorising carriage of passengers and/or goods and/or any other air service operated for hire or reward, the Insured shall insofar as it is legally competent to do so and in any event in respect of all carriage that is not “international” as defined in the Warsaw Convention referred to below, limit its liability for claims under (a) and (b) above up to the maximum amount prescribed in Article 22(1), 2(a) and (b) and (3) of the Warsaw Convention dated 12th October 1929 as amended by the Hague Protocol dated 28th September 1955, or the minimum amount prescribed by the law of the country, whichever is the greater.
(ii) If the measures referred to in proviso (i) above include the issue of a passenger ticket/baggage check, the same shall be delivered correctly completed to the passenger a reasonable time before the passenger boards the Aircraft.
In the event of failure to comply with proviso (i) or (ii) the limit of indemnity by the Insurer under this Section shall not exceed the amount of the legal liability (if any) that would have existed had the proviso been complied with.
Whenever the Aircraft mentioned in the Schedule hereto is being used for the purpose of flying instruction the liability of the Insurer in terms of this Section is not extended to either the instructor or the pilot undergoing such instruction neither of whom being regarded as a passenger.
2. EXCLUSIONS APPLICABLE TO THIS SECTION ONLY
The Insurer shall not be liable for injury (fatal or otherwise) or loss:
Employees
and others
Number of
Passengers
(i) Sustained by any
(a) members of the household or family of the Insured,
(b) director, employee or partner of the Insured or member in the Insured’s business whilst acting in the course of their employment with or duties for the Insured,
(c) member of the flight, cabin or other crew member whilst engaged in the operation of the Aircraft, or while such crew member is in any way engaged in his capacity as such.
(ii) Whilst the total number of passengers being carried in the Aircraft exceeds the declared maximum number of passenger seats stated in the Schedule hereto.
3. LIMITS OF INDEMNITY APPLICABLE TO THIS SECTION
The liability of the Insurer under this Section shall not exceed the amount stated in the Schedule hereto. The Insurer will defray, in addition, any legal cost and expenses incurred with its written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claims exceed the limit of indemnity then the liability of the Insurer in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the limit of indemnity bears to the amount paid for compensatory damages.
SECTION IV
GENERAL CONDITIONS
Purpose and
Manner of use
Licences
Geographical
Limits
Pilots
Transportation
by other
conveyance
Landing and
Take-off areas
Contractual
Liability
Non Contribution
(A) General Exclusions applicable to all Sections
This Policy does not apply:
1. Whilst the Aircraft is being used for any illegal purpose or for any purpose other than that stated in the Schedule hereto and as defined in the Definitions
2. Whilst the Aircraft is being operated and/or used for reward in contravention of any statutory licence and operating requirements pertaining to pilots, crew and operators, issued by the competent aviation authorities,
3. Whilst the Aircraft is outside the geographical limits stated in the Schedule hereto,
4. Whilst the Aircraft is being piloted by any person other than as stated in the Schedule hereto except that the Aircraft may be operated on the ground by any person competent for that purpose and entitled by law to do so,
5. Whilst the Aircraft is being transported by any means of conveyance (excluding conveyance by its own motive power) except if it is transported by other conveyance as the result of an Accident giving rise to a claim under Section I of this Policy,
6. Whilst the Aircraft is landing or taking off or attempting to do so either at or from a place which does not comply with the recommendations laid down by the manufacturer of the Aircraft, unless due to force majeure.
7. To liability assumed or rights waived by the Insured under any agreement (other than passenger ticket/baggage check issued under Section III except to the extent that such liability would have attached to the Insured in the absence of such agreement.
However this exclusion shall not apply in the event of the Insured or the employees or agents of the Insured accepting conditions which exclude or limit liability in respect of loss of or damage to the Aircraft imposed by:-
(i) repair, servicing or maintenance organizations (who undertake any repairs to or maintenance of the Aircraft),
(ii) hangarkeepers and suppliers of fuel,
(iii) any airport owner or airport license holder;
8. To claims which are payable under any policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this policy not been effected;
Radioactivity/
Nuclear Risks
War hijacking
And other perils
Asbestos
9. 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) ionizing radiations or contamination by radioactivity from, or the
toxic, explosive or other hazardous properties of, any other
radioactive source whatsoever.
10. To claims caused by: -
(a) war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power, or attempts at usurpation of power
(b) any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter;
(c) strikes, riots, civil commotions or labour disturbances;
(d) any act of one or more persons whether or not agents of a sovereign power for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional;
(e) any malicious act or act of sabotage;
(f) confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil, military or de facto) or public or local authority.
(g) hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.
Furthermore this Policy does not cover claims arising whilst the Aircraft
is outside the control of the Insured by reason of any of the above perils.
The Aircraft shall be deemed to have been restored to the control of
the Insured on the safe return of the Aircraft to the Insured at an airfield
not excluded by the geographical limits of this Policy and entirely
suitable for the operation of the Aircraft as prescribed by the
manufacturer of the Aircraft (such safe return shall require that the
Aircraft be parked free of duress with engines shut down).
11. To and does not cover any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses directly or indirectly arising out of, resulting from or in consequence of, or in any way involving asbestos, or any materials containing asbestos in whatever form or quantity provided that the loss or losses are caused or contributed to by the hazardous nature of asbestos.
Date recognition
Compliance
with Air
Navigation
Orders etc.
Variation
in risk
Instruction
12. 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 Insurer to investigate or defend claims shall not apply to any claims so excluded.
(B) Warranties applicable to all Sections
The Insured warrants:
1. Compliance with all air navigation and airworthiness orders and requirements issued by any competent authority affecting the safe operation of the Aircraft and shall ensure that:
(a) the Aircraft is airworthy at the commencement of each Flight
(b) all Log Books and other records in connection with the Aircraft which are required by any official regulations in force from time to time shall be kept up to date and shall be produced to the Insurer or their Agents on request;
(c) the employees and agents of the Insured comply with such orders and requirements.
2. That should there be any change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurer and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been expressly accepted by the Insurer.
3. That any flying instruction of whatsoever nature shall be effected by or under the supervision of a duly qualified licensed instructor only.
Due
observance
Claims
procedure
Control of
Proceedings
Subrogation
More than
one Insured
False and
fraudulent
claims
Cancellation
(C) General Conditions applicable to all Sections
1. The due observance and fulfilment of the terms, conditions and endorsements of this Policy shall be a condition precedent to any liability of the Insurer to make any payment under this Policy.
2. Immediate notice of any event likely to give rise to a claim under this Policy shall be given to the Insurer. In all cases the Insured shall:
(a) furnish full particulars in writing of such event and forward immediately notice of any claim (by a third party or passenger) with any letters or documents relating thereto;
(b) give notice of any impending prosecution;
(c) render such further information and assistance as the Insurer may reasonably require;
(d) not act in any way to the detriment of or prejudice to the interest of the Insurer.
The Insured shall not make any admission of liability or payment or offer or promise of payment without the written consent of the Insurer.
3. The Insurer shall be entitled (if it so elects) at any time for as long as it desires to take absolute control of all negotiations, proceedings and litigation affecting the Insured and to deal with such matters as it deems fit. This includes the right to settle, defend or pursue any claim or prosecution in the name of the Insured.
4. Upon an indemnity being given or a payment being made by the Insurer under this Policy it shall be subrogated to the rights and remedies of the Insured who shall co-operate with and do all things necessary to assist the Insurer to exercise such rights and remedies.
5. Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise the total liability of the Insurer in respect of any or all Insureds shall not exceed the limit(s) of indemnity stated in the Schedule hereto.
6. If the Insured or his agent or employee 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.
7. The Policy may be cancelled by either the Insurer or the Insured giving 30 days notice in writing of such cancellation. If cancelled by the Insurer it will return a pro rata portion of the premium in respect of the un expired period of the Policy. If cancelled by the Insured a return of premium shall be at the discretion of the Insurer. There will be no return of premium in respect of any Aircraft on which a loss exceeding the annual policy premium has been paid or is payable under this Policy. Notwithstanding the above cancellation terms for non-payment of premium are 10 days unless otherwise agreed by endorsement.
Assignment
Non marine
Insurance
Interpretation
Due diligence
Prescription
Premium
Payment
Full premium
if loss
Penalties
Two or more
Aircraft
8. This Policy shall not be assigned in whole or in part except with the consent of the Insurer verified by endorsement hereon.
9. This Policy is not and the parties hereto expressly agree that it shall not be construed as a policy of marine insurance.
10. Wording in the margins is purely for the reference purposes and shall not be used in the interpretation of this Policy.
11. The Insured shall at all times use due diligence and do and concur in doing everything reasonably practicable to avoid or diminish any loss hereon.
12. In the event of an incident which may or does give rise to a claim or claims under any Section of the Policy, the Insured shall comply with the obligations set out in General Condition 2. If after due and proper notice has been given by the Insured to the Insurer, the latter concludes and advises that the Insured is not entitled to any protection or indemnity under the Policy in its entirety or under any Section thereof, albeit for claims at that time or at any time in the future, all benefit under this Policy, under all Sections thereof, shall be forfeited by the Insured unless legal action for protection under the Policy is instituted within nine months of the date of the Insurer advising the Insured or its agent of the decision not to afford any benefit whatsoever to the Insured.
13. The premium under this Policy is payable on or before inception date or renewal date as the case may be. The Insurer shall not be obliged to accept premium tendered to it after such date but may do so upon terms as it, in it’s sole discretion may determine.
14. It is understood and agreed that in the event of a claim arising in terms of this Policy the full annual premium less the amount of premium already paid, shall become due and payable forthwith.
15. This Policy will not indemnify the Insured in respect of fines, penalties, punitive, exemplary or vindictive damages.
16. In the event of a claim, when two or more Aircraft are insured hereunder, the deductible in terms of this Policy shall apply separately to each Aircraft.
(D) Definitions
(a) “AIRCRAFT” shall mean the Aircraft specified in the Schedule hereto together with its engine(s) and standard instruments and equipment including any extra equipment or accessories specifically mentioned in the Schedule.
(b) “ACCIDENT” means any one accident or series of accidents arising out of one event.
(c) "UNIT" means a part or an assembly of parts (including any sub-assemblies) of the Aircraft which has been assigned an Overhaul Life as a part or an assembly. Nevertheless, an engine complete with all parts normally attached when removed for the purpose of overhaul or replacement shall together constitute a single Unit.
(d) “OVERHAUL LIFE” means the amount of the use or operational and/or calendar time which according to the Airworthiness Authority, determines when overhaul or replacement of a Unit is required.
(e) “OVERHAUL COST” means the costs of labour and materials which are or would be incurred in overhaul or replacement (whichever is necessary) at the end of the overhaul life of the damaged or a similar Unit.
(f) All amounts stated with the prefix “R” mean South African Rand.
(g) All amounts stated with the prefix “$” mean United Stated Dollars.
(h) All amounts stated with the prefix “€” mean Euros.
(i) “PRIVATE, PLEASURE,” means the use for private and pleasure purposes but not use for any business or profession or for the hire or reward.
(j) “BUSINESS/INDUSTRIAL AID” means the uses stated in “Private, Pleasure” and use for the purpose of the Insured’s business or profession but not use of the Aircraft for hire or reward.
(k) “COMMERCIAL OR CHARTER” means the uses stated in “Private, Pleasure” and “Business/Industrial Aid” and use for the carriageby the Insured of passengers, baggage accompanying passengers and cargo, all for hire or reward, in terms of a license issued by a competent aviation authority.
(l) “RENTAL” means rental, lease, charter, or hire by the Insured to any person, company, or organisation for “Private, Pleasure” and “Business/Industrial Aid” uses only where the operation of the Aircraft is not under the control of the Insured. Rental for any other purpose is not insured under this Policy unless specifically declared to the Insurer and stated under “SPECIAL RENTAL USES” in the Schedule.
(m) “SALES AND DEMONSTRATION” whilst of the Ground in Flight
(n) “AB INITIO OR LICENCE REINSTATEMENT INSTRUCTION” means practical or theoretical tuition to a person who is undergoing flying training on the Aircraft for the purpose of obtaining or reinstating a private or higher pilot’s licence.
(o) “CONVERSION TO TYPE INSTRUCTION” means use for instruction to a pilot for the purpose of obtaining a type or category rating in respect of the Aircraft in compliance with legal regulations for type and category ratings. It does not include “AB INITIO INSTRUCTION”.
(p) “ADVANCED INSTRUCTION” means additional flying training for the purpose of enabling a pilot to exercise rating privileges other than those already held by him in terms of an existing licence rating, or recurring training but does not include “Ab-initio”, “Reinstatement of licence” or “Conversion to type instruction”.
(q) “FLIGHT” means from the time the Aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the Aircraft completes its landing run. A rotary-wing aircraft shall be deemed to be in Flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.
(r) “TAXYING” means movement of the Aircraft under its own power other than Flight as defined. Taxiing shall not be deemed to cease merely by reason of a temporary halting of the Aircraft.
(s) “GROUND” means while the Aircraft is not in Flight or Taxiing as defined.
(t) “ENGINE” means an engine for propulsion or auxiliary power complete with all parts necessary for test cell running.
Definitions (i), (j), (k) and (l) constitute “Standard Uses” and do not include instruction, patrol (including but not limited to security, traffic, power line, pipe line and anti-poaching patrol), wire-stringing, pole setting, fire fighting and/or spotting and/or control and/or patrol and/or support, all forms of racing including speed trials, record attempts, aerial or cloud seeding, crop dusting or spraying, hunting, shooting, herding, counting, capture, all forms of game work, fish spotting, experimenting with or testing new parts (other than replaced standard parts) or new devices or new designs, sequence display or aerobatic flying, parachute dropping, vehicle tracking, aerial survey and/or filming or photography, external loads and/or under slung and/or winching operations, offshore servicing, offshore drilling, erection, construction, banner towing, any use which requires prior permission from competent authority and additionally any other use involving abnormal hazard but when cover is provided details of such use(s) are stated under “Special Uses” in the Schedule hereto.
1. LOSS OF OR DAMAGE TO AIRCRAFT
Subject to the terms and conditions and limitations set out below, this Section covers loss of or damage to the Aircraft described in the Schedule against claims excluded under Section I as caused by:
(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.
(b) Strikes, riots, civil commotions or labour disturbances
(c) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.
(d) Any malicious act or act of sabotage.
(e) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition, for the title or use by or under the order of any Government (whether civil, military or de facto) or public or local authority.
(f) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.
Furthermore this Policy covers claims excluded from the Insured’s Hull All Risks Policy from occurrences whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of the Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).
2. EXTORTION AND HI-JACK EXPENSES
This Section will also indemnify the Insured subject to the terms, conditions, exclusions and limitations set out below, and up to the limit stated in the Schedule, for 90 % of any payment properly made in respect of:
(a) Threats against any Aircraft described in the Schedule or its passengers or crew
made during the currency of this Policy;
SECTION V
WAR RISKS EXTENSION
(b) Extra expenses necessarily incurred following confiscation, etc. (paragraph 1(e) above) or hi-jacking, etc. (paragraph 1 (f)) of any Aircraft described in the Schedule
No cover will be provided under this paragraph 2 of this Extension in any territory where such insurance is not lawful, and the Insured is at all times responsible for ensuring that no arrangements of any kind are made which are not permitted by the proper authorities.
3. GENERAL EXCLUSIONS
This Section excludes loss, damage or expense caused by one or any combination of any of the following:
(a) War (whether there be a declaration of war or not) between any of the following States:
The United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China; nevertheless, if any Aircraft is in the air when an outbreak of such war occurs, this exclusion shall not apply in respect of such Aircraft until the said Aircraft has completed its first landing thereafter;
(b) Directly or Indirectly arising out of any detonation of any weapon of war employing atomic or nuclear fission and/or fusion, or other like reaction or radioactive force or matter, whether hostile or otherwise;
(c) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the authority of the Government of the country in which the Aircraft is registered, or any public or local authority under its jurisdiction;
(d) Any debt, failure to provide bond or security or any other financial cause under court order or otherwise;
(e) The repossession or attempted repossession of the Aircraft either by any title holder, or arising out of any contractual agreement to which any Insured protected under this Policy may be party;
(f) Delay, loss of use or, except as specifically provided in paragraph 2 of this section, any other consequential loss; whether following upon loss of or damage to the Aircraft or otherwise.
4. GENERAL CONDITIONS
(a) This Section is subject to the same warranties, term and conditions (except as regards the premium, the obligations to investigate and defend, the renewal agreement (if any) and except as otherwise provided herein) as are contained in or may be added to the Insured’s Hull All Risks Policy covering the Aircraft;
(b) Should there by any material change in the nature or area of the Insured’s operations, the Insured shall give immediate notice of such material change to the Underwriters; no claim arising subsequent to a material change over which the Insured had control shall be recoverable hereunder unless such change has been accepted by the Insurer;
(c) Material change shall be understood to mean any change in the operation of the Insured which might reasonably be regarded by the Insurer as increasing its risk in degree or frequency, or reducing possibilities of recovery or subrogation;
(d) The due observance and fulfilment of the terms, provisions, conditions and endorsement of this Section shall be conditions precedent to any liability of the Insurer to make any payment under this Section; in particular the Insured should use all reasonable efforts to ensure that he complies and continues to comply with the laws (local or otherwise) of any country within whose jurisdiction the Aircraft may be, and obtain all permits necessary for the lawful operation of the Aircraft;
(e) Subject always to the provision of this Section, and the Schedule, Insurer hereon agree to follow the Hull “All Risks” Policy in respect of Breach of Warranty Cover, Hold Harmless Agreements and Waivers of Subrogation.
5. CANCELLATION, AUTOMATIC TERMINATION AND SUSPENSION
(a) Insurer may give notice effective on the expiry of seven days from midnight G.M.T. on the day on which notice is issued to cancel the insurance provided under this section.
(b) This insurance provided by this section may be cancelled by the Insurer or the Insured giving notice not less than seven days prior to the end of each period of three months from inception.
Whether or not such notice of cancellation has been given this insurance shall TERMINATE AUTOMATICALLY upon the outbreak of war (whether there be a declaration of war or not) between any of the following States, namely, the United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China.
PROVIDED THAT if the Aircraft is in the air when such outbreak of war occurs then this insurance, subject to its terms and conditions and provided not otherwise cancelled, terminated or suspended, will be continued in respect of such Aircraft until the said Aircraft has completed its first landing thereafter.
AGREED VALUE CLAUSE
In the event of total destruction or loss of the insured Aircraft and its equipment and accessories, the agreed value set against such Aircraft and its equipment and accessories will be paid in full less the applicable deductible.
ARBITRATION AND JURISDICTION CLAUSE
This insurance shall be exclusively governed by the laws of the Republic of South Africa and, to the extent lawfully and legally permissible, any dispute between the Insured and the Company shall be submitted to arbitration in the Republic of South Africa in accordance with the Statutory provisions for arbitration for the time being in force. Any summons, notice or process to be served upon the Company for the purpose of instituting any legal proceedings against it in connection with this insurance shall be served upon it at its offices.
HAIL DAMAGE CLAUSE
It is hereby warranted that in the event of any Aircraft insured in terms of this Policy having been damaged by hail not fully repaired prior to inception of the risk, this Policy will specifically exclude all further hail damage until such time as the Insured has proved to the Insurer that any hail damage which existed at inception of the risk has been fully repaired.
UNLICENSED LANDING GROUNDS SUITABILITY CLAUSE
It is hereby declared and agreed that the landing on and taking off of the Aircraft by day from landing grounds other that duly licensed airports is covered under this Policy subject to each such landing ground being surveyed from the ground or from the air by the Insured and/or pilot immediately prior to landing or taking off as the case may be. In the event of a claim being made under this Policy arising out of the use of any such landing ground the onus of proving its suitability as such shall rest entirely on the Insured.
AIRFREIGHT OF SPARES CLAUSE
The Insurer will pay for the airfreighting of materials provided that the airfreight charges do not exceed 10 percent of the agreed value of the Aircraft subject to the maximum of R50,000.00 (FIFTY THOUSAND RAND) if the hull of the aircraft which is the subject of an admitted claim is Insured in South African Rands, or US$10,000.00 (TEN THOUSAND UNITED STATES DOLLARS) if the hull of the Aircraft which is the subject of an admitted claim is insured in United States Dollars.
BREACH OF AIR NAVIGATION REGULATIONS CLAUSE
It is agreed that any breach of Air Navigation and Airworthiness orders and requirements issued by any competent authority without the Insured’s knowledge and consent shall not invalidate a claim by the Insured under this insurance, but the individual causing such breach or contravention shall not be entitled to indemnity hereunder.
OUT OF NOTIFIED HOURS CLAUSE
The coverage provided by this policy shall not be invalidated as a result of the use, by the Insured, of certain airfields and/or airports out of the notified hours, subject to prior permission having been granted by the appropriate owner and/or operator of such airfield and/or airport.
CLAUSES INCORPORATED IN AND FORMING PART OF THE POLICY
SOUTH AFRICAN AIR FORCE RESERVE SQUADRON FLYING/POLICE AIRWING/SOUTH AFRICAN CIVIL RESERVE CLAUSE (APPLICABLE TO SECTION I ONLY)
The cover provided by Section I of this Policy includes the use of the Aircraft for Commando Squadron duties authorised on the order of and under the general control of the Chief of the Air Force/Commissioner of Police of the Republic of South Africa. It is further agreed that such authorised duties are:
(a) Flights at training courses
(b) Ad hoc tasks flown in support of or at the request of the Civil Aviation Authority, South African National Defence Force, South African Police Service and National Sea Rescue Institute of South Africa.
Subject to all such duties being carried out in compliance with all Civil Aviation Regulations notwithstanding any Regulations or section of the Aviation Act No. 74 of 1962 which supports or attempts to purport to exclude compliance therewith
The Policy does not cover loss or damage to the above mentioned Aircraft as a result of or in the course of operational, hostile or malicious action of or against insurgents or other persons.
CONTINGENT PILOTS CLAUSE
It is hereby declared and agreed in respect of piston engine fixed wing aircraft only, the Permitted Pilot and Purpose of use provisions in this Policy are extended to include the following:
(a) Any type rated commercially licensed pilot solely for the purpose of collection and/or delivery and/or test flights in connection with overhaul, maintenance or repair of the Aircraft.
(b) Any type rated privately licensed pilot solely for the purpose of collection and/or delivery and/or test flights required in connection with overhaul, maintenance or repair of the Aircraft provided that the pilot has been specifically approved by the Civil Aviation Authority for this purpose.
VAT PAYMENTS
It is understood and agreed that notwithstanding the Agreed Value Clause that may be contained in the policy the Insurer agrees that VAT, calculated at 14% (or as may be amended by the Government from time to time), will be paid in addition to the sum insured as stated in the schedule in the event of the aircraft being a total or constructive total loss.
In respect of partial losses VAT will be added to the deductible where such deductible is expressed as a percentage of the sum insured. CURRENT PILOT CLAUSE
It is hereby noted any pilot flying the aircraft/s stated in the schedule of insurance are required to have flown the same aircraft make and model at least 60 days preceding any flight on the insured aircraft.
Should a loss occur under this insurance policy where the pilot has not complied with this provision the following will apply unless otherwise agreed by way of endorsement or whilst receiving instruction:
- Where deductible is R 12,500 or US$2 500 (or as stated on the schedule) each and every loss becomes R 50,000 or US$6 250 each and every loss.
- Where deductible is R 25,000 or US$5 000 (or as stated on the schedule) each and every loss becomes R 75,000 or US$9 375 each and every loss.
- Where deductible is USD 25,000 each and every loss becomes USD 30,000 each and every loss.
- Where deductible is USD 50,000 each and every loss becomes USD 75,000 each and every loss.
- Where deductible is 5% of Agreed Value each and every loss becomes 6% of Agreed Value each and every loss.
- Where deductible is 10% of Agreed Value each and every loss becomes 12% of Agreed Value each and every loss.
- Where deductible is 12.5% of Agreed Value each and every loss becomes 14% of Agreed Value each and every loss.
PILOT’S INDEMNITY CLAUSE
It is hereby declared and agreed that the indemnity granted under Section II – Legal Liability to Third Parties (other than Passengers) and Section III – Legal Liability to Passengers – if incorporated herein shall extend include the legal liability of any pilot (as described in the Schedule hereto) who flies the Aircraft with the Express knowledge and consent of the Insured in respect of injury or damage as defined in the relative section but not so as to increase the liability of the Insurer beyond the amount which it would have been liable to pay in respect of such injury or damage if liability had devolved upon the Insured.
Provided always that
1. at the time of any Accident giving rise to a claim under this extension the said pilot:
(a) is not entitled to indemnity under any other policy.
(b) shall as though he were the Insured observe, fulfil and be subject to all warranties, terms, exclusions, deletions, definitions, conditions and clauses contained in the Policy so far as they can apply.
2. the Insurer shall not be liable under this extension in respect of claims by the Insured.
3. for the purpose of this extension the word “Insured” wherever it appears in the Exclusions appearing in Sections II and III shall be understood to mean
(a) the Insured named in the Schedule hereto
and/or
(b) any pilot as aforesaid in respect of whom this extensions is operative.
AGGRAVATION OF INJURY / ILLNESS / MEDICAL MALPRACTICE EXCLUSION
Notwithstanding anything contained herein to the contrary, it is hereby understood and agreed that this Policy shall exclude coverage in respect of the Insured’s liability arising out of the transportation of human blood, plasma and/or organs or for medical malpractice or aggravation of existing injuries or illness of any passenger carried by the Insured as the result of such passenger entering into, alighting from or flying in the Aircraft.
LEGAL LIABILITY TO STUDENT PILOT(S) CLAUSE
It is hereby agreed that the coverage afforded by this policy is extended to indemnify the Insured and/or any qualified licensed instructor who may be engaged by the Insured in respect of their legal liability to pilot(s) undergoing instruction subject to a limit of liability of R250 000 any one person/each Accident in the policy period of Insurance (included within the Combined Single Limit).
Subject to the terms, clauses, conditions and limitations of the policy.
FOREIGN CURRENCY CLAUSE
In respect of any Aircraft insured hereunder where the Hull value is expressed in any currency except South African Rands in the Schedule/Endorsement it is agreed that all losses / payments will be paid in either the Foreign Currency stated (subject to South African Reserve Bank approval), or the South African Rand equivalent at the sole discretion of the Insurer. The exchange rate quoted by Chartis bankers’ at the close of business on the date of loss or the first trading day after such loss will be utilized.
NO CLAIM BONUS CLAUSE
Subject to there being no claim settled or outstanding or expenses incurred in connection with any claim on this Policy and provided this Policy has been in force for twelve consecutive months and subject to this insurance having been renewed with the Insurer on a similar basis for a further period of twelve consecutive months a no claim bonus return premium calculated at the rate stated in the Schedule hereto shall be allowed to the Insured, it being understood that no obligation on the Insurer or the Insured to renew is implied
CROSS LIABILITIES CLAUSE
The parties comprising the Insured shall each be considered as a separate and distinct unit and the words “the Insured” shall be considered as applying to each party and in the same manner as if a separate Policy had been issued to each of the parties.
UNAUTHORISED USE CLAUSE (THEFT ONLY)
This Policy includes cover for loss, damage and liability of the Insured as defined herein whilst the insured Aircraft is used in a place and/or in a manner and/or by a person not permitted by this Policy provided such use results from the theft of the aircraft and provided that the Insured takes reasonable precautions to prevent such theft. Nothing in this clause shall extend this Policy to indemnify an unauthorised person and/or organisation in respect of any claims for which they may be liable.
UNAUTHORISED USE CLAUSE
No claim under this Policy shall be rejected on the grounds that the aircraft was used in a place or in a manner or by a person not permitted under the terms of this Policy
Provided that:
Such use was not authorised by the Insured and that the Insured has taken reasonable precautions to prevent such unauthorised use. Any consent given by a servant or agent of the Insured outside the normal scope of his authority shall not be deemed to be an authorisation by the Insured.
Subject to the terms, clauses, conditions and limitations of the policy. Nothing in this clause shall extend this Policy to indemnify an unauthorised person and/or organisation in respect of any claims for which they may be liable.
PARACHUTISTS EXCLUSION CLAUSE
It is agreed that:
(a) Section II of this Policy does not cover accidental bodily injury or damage to property caused by Parachutists and/or Skydivers and/or their equipment.
(b) Section III of this Policy does not cover accidental bodily injury or death to Parachutists and/or Skydivers whilst on board aircraft and for the purpose of Parachuting or Skydiving.
INGESTION CLAUSE
Ingestion damage by stones, grit, dust, sand, ice and the like which result in progressive engine deterioration will be regarded as “wear and tear and deterioration” and excluded; but ingestion causing sudden damage attributable to a single recorded incident is covered, each occurrence, each Engine to be a separate claim unless such damage is caused by a forced or crash landing.
The deductible to be borne by the Insured in respect of each claim shall be as applicable in the case of Flight and Taxy claims.
HOT/HUNG STARTS CLAUSE
Coverage is extended to include damage to the aircraft engine(s) occurring as a result of Hot
and / or Hung starts subject to:
a) the damage resulting from a single recorded incident.
b) a technical log entry being made at the time of the incident.
c) the incident being reported immediately to a licensed engineer and prior to any restart attempt.
d) the reporting of an incident likely to give rise to a claim under the Policy to Insurer in accordance with the policy conditions and subject to the application of normal policy deductibles and betterment where applicable. Due to the extension to cover Hot/Hung starts, the Engine Endorsement in Section I Exclusions is deleted and replaced with the following:
Engine Endorsement
Any claim in respect of an Engine is restricted to loss or damage caused by theft, lightning, flood, outbreak of fire external to the Engine or by sudden and unexpected Impact with a foreign object requiring immediate withdrawal of the Engine from service or by a Hot start or by a Hung start.
As used herein “Engine” means an engine for propulsion or auxiliary power complete with all parts necessary for test cell running.
“Hot Start” means the start of a turbine engine abandoned because of an over
temperature indication.
“Hung Start” means the starting of a main turbine engine which for any reason, automatically or under manual control, is arrested after ignition but before self sustaining speed is reached.
SEARCH AND RESCUE CLAUSE
It is agreed that this Policy extends to indemnify the Insured in respect of expenses incurred in rescue work (including the cost of search) necessitated by an accident during the policy period to the insured Aircraft whilst within the geographical limits as stated in the Schedule.
The word “accident” as used herein shall mean any occurrence which prevents the completion of a Flight from point of origin to destination and involves either a forced landing or crash away from the premises of any recognised airfield and which necessitates searching for the Aircraft or rescuing any person involved in such forced landing or crash and returning them to the nearest point of hospitalisation (if necessary) or the nearest point of public transportation.
The liability of the Company under this extension is limited to ten percent (10%) of the agreed value of the Aircraft subject to a maximum of R50,000.00 (Fifty Thousand Rand) in respect of any one accident.
WRECK REMOVAL EXPENSES CLAUSE
This Policy is extended to indemnify the Insured in respect of all expenses which the Insured may incur and become legally liable to pay for the raising, removal, disposal or destruction of the wreck of the insured Aircraft necessitated by an Accident to the Aircraft as a result of a risk covered by this Policy.
The liability of the Company under this extension is limited to R50,000.00 (Fifty Thousand Rand).
RUNWAY FOAMING EXPENSES CLAUSE
The coverage under Sections II and III of this Policy is extended to indemnify the Insured in respect of runway foaming expenses which the Insured may incur and become legally liable to pay as a result of an Accident of the insured Aircraft caused by a risk covered by this Policy.
The liability of the Company under this extension is limited to R50,000.00 (Fifty Thousand Rand).
THE PRESIDENT’S TROPHY AIR RACE AND/OR RALLIES CLAUSE
Notwithstanding the exclusion relating to racing and/or rallies in the within Policy it is agreed to include participation in The President’s Trophy Air Race and/or rallies subject to the following conditions:
1. Cover in respect of Section II of the Policy (Legal Liability to Third parties) is restricted to a limit of R100 000 (One Hundred Thousand South African Rands) whilst the insured Aircraft is being used in the said race or rally.
2. Cover in respect of Section III of the Policy (Legal Liability to Passengers) shall not apply whilst the insured Aircraft is being used in the said race or rally.
3. All deductibles are increased to 10% (Ten Percent) of the Agreed Value of the insured Aircraft subject to a minimum of R20 000 (Twenty Thousand South African Rands) including Total Loss, Constructive Total Loss and Arranged Total Loss.
4. This cover to apply from arrival of the insured Aircraft at the aerodrome prior to the start of the race or rally and to remain in force until departure from the aerodrome after the end of the race or rally.
It is further agreed and understood that any breach of Air Navigation Regulations by either the Insured or any pilot flying the Aircraft will invalidate any claim of whatever kind under any Section of the Policy.
SEQUENCE DISPLAY OR AEROBATIC FLYING EXCLUSION CLAUSE
It is agreed that Section III of this Policy is deleted whilst the Aircraft is being used for Sequence Display or Aerobatic Flying.
CHEMICAL LIABILITY EXCLUSION
Notwithstanding anything contained herein to the contrary, it is hereby understood and agreed that his Policy does not apply to claims caused by :-
1. any injury (fatal or otherwise), sickness or disease
2. loss of or destruction of or damage to any property whatsoever or any loss or expenses or consequential loss
Directly or indirectly related or caused or arising from any form of aerial application (including but not limited to the dusting, spraying or dropping of any chemicals, pesticides, herbicides, seed or the like) whether the aerial application is deliberate or in error. EXTERNAL LOADS AND/OR UNDER SLUNG AND/OR WINCHING OPERATIONS EXCLUSION CLAUSE
It is agreed that:
(b) Section II of this Policy does not cover accidental bodily injury or damage to property caused by any External Loads and/or Under Slung and/or Winching Operations.
(c) Section III of this Policy does not cover accidental bodily injury or damage to anything carried by means
(d) of External Loads and/or Under Slung and/or Winching Operations.
LEGAL LIABILITY TO EMPLOYEES CLAUSE
Notwithstanding anything contained herein to the contrary it is hereby declared and agreed that if any time during the period of this insurance any employee of the Insured shall sustain bodily injury (fatal or non fatal) whilst traveling as a passenger in the Aircraft described in the Schedule hereto (including mounting into or dismounting from that Aircraft) in the course of his employment by the Insured and if the Insured shall become legally liable to pay and shall pay any compensation (including costs awarded against the Insured) in respect of such injury, the Insurer, subject otherwise to all terms, conditions, limitations and exclusions of this insurance contained herein or endorsed hereon will indemnify the Insured in respect of all sums for which the Insured shall be so liable up to but not exceeding the limits of indemnity as described in the Schedule hereto :
Provided always that
(b) The indemnity provided by this clause shall not apply if the liability of the Insured arises under any law requiring compensation to be paid for injury to workmen.
(c) The indemnity provided by this clause shall not apply to claims payable under another policy of policies including any Employers Liability coverage except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected.
EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)
1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of (as stated in the schedule) it is hereby understood and agreed that with effect from (as stated in the schedule) all sub-paragraphs other than paragraph 10 (b) of General Exclusions forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.
2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.
Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.
3. LIMITATION OF LIABILITY
The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall beUS$ 10,000,000 or the applicable policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.
To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:
a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the 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 Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.
4. AUTOMATIC TERMINATION
To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:
(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America
(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- 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
(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition
PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (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.
5. REVIEW AND CANCELLATION
(a) Review of Premium and/or Geographical Limits (7 days)
Insurer may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.
(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurer may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.
(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurer or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.
(d) Notices
All notices referred to herein shall be in writing.
BREACH OF WARRANTY CLAUSE
(i) The insurance afforded by the Policy shall not be invalidated as regards the interest of the Owners as stated in the Schedule by any act or neglect of the Insured except that any change in title or ownership of the Aircraft, conversion, embezzlement or secretion by the Insured in possession of the Aircraft are not covered hereunder,
PROVIDED HOWEVER THAT:
(a) If the Insured fails, on demand of the Company, to pay any premium due under this Policy, the Owners shall pay such premium; and
(b) The Owners shall notify the Company of any increase of hazard which comes to the Owners’ attention and if not permitted by the Policy, it shall be endorsed thereon, the Owners agreeing to pay any additional required premium if the Insured shall fail to do so on demand by the Company.
It is, however, further understood and agreed by the parties concerned that the protection afforded to the Owners by the terms of this clause is limited to the perils covered under the Policy and for which a specific premium charge has been made.
(ii) If the Insured fails to render proof of loss within the time granted in the Policy conditions, the Owners shall do so within 60 days thereafter, in form and manner as provided by the Policy, and further shall be subject to the provisions of the Policy relating to appraisal and time of payment and of bringing suit.
(ii) Whenever the Company shall be liable to the Owners for any sum for loss or damage under this Policy and shall claim that as to the Insured, no liability therefore existed, their liability under the terms of this clause shall not in any event exceed the amount stated in the Schedule, less the amount of all matured instalments and less unearned interest or carrying charges and unearned financed insurance premium, if any. (Less any excess or deductible which would have applied in terms of this Policy).
(iii) The Company reserves the right to cancel this Policy at any time as provided by its terms but in such case notification shall be given to the Owners when not less than 10 days thereafter such cancellation shall be effective as to the interest of said Owners therein and the Company shall have the right, on like notice, to cancel this clause.
(iv) Upon payment of any sum to the Owners as provided hereunder, the Company shall to the extent of such payment be thereupon legally subrogated to all the rights of the Owners under all securities held as collateral to the debt and the Owners shall assign and transfer to the Company all instruments of security pertaining to the Aircraft, but no subrogation shall impair the right of the Owners to recover the full amount of their claim.
HIRE PURCHASE CLAUSE
It is hereby agreed that the Owners as stated in the Schedule are the owners of the Aircraft described in the Schedule hereto and that the said Aircraft is the subject of a Hire Purchase Agreement made between the Owners of the one part and the Insured of the other part, and it is further agreed that the said Owners are interested in any monies which but for this clause would be payable to the Insured under the Policy in respect of the loss of or damage to the said Aircraft (which loss or damage is not made good by repair, reinstatement or replacement) and such monies shall be paid to the said Owners as long as they are the Owners or regarded as the Owners under the Hire Purchase Agreement of the Aircraft and their receipt shall be a full and final discharge to the Company in respect of such loss or damage.
Save as hereby expressly agreed nothing herein shall modify or affect the rights or liabilities of the Insured or the Company respectively under or in connection with the Policy or any condition or term thereof.
DEBIT ORDER PAYMENTS - NON PAYMENT CANCELLATION
Notwithstanding anything contained to the contrary in this Policy, if any amount due in terms of any Debit Order in respect of this Policy is not paid within 15 (fifteen) days after the first day of the month (or any other due date agreed in writing), then this Policy shall be cancelled with effect from the last day of the previous month without further notice to the Insured.
DEFERRED PREMIUMS
It is hereby understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments:-
1st Instalment – Amount: 25% - Due at inception of the policy
2nd Instalment – Amount: 25% - Due within 121 days of the inception of the policy
3rd Instalment – Amount: 25% - Due within 212 days of the inception of the policy
4th Instalment – Amount: 25% - Due within 303 days of the inception of the policy
Nevertheless it is further understood and agreed that:-
Notwithstanding any provision as to notice of cancellation contained in this Policy, it is a condition that in the event of any instalment not being paid by its due date the cover afforded by this Policy shall be deemed to have ceased at midnight of such due date.
In the event of a claim hereunder which exceeds the instalments of premium paid on this Policy the instalments of premium then outstanding shall become payable forthwith.
FORCED LANDING CLAUSE
Insurer hereon agree that in the event of an insured Aircraft making a forced landing in any place where subsequent safe take-off is impossible they will pay all reasonable costs, expenses or expenditure for the removal of the Aircraft to the nearest suitable take-off area provided that Insurer’s liability for such costs, expenses or expenditure, and for any loss of or damage to the Aircraft, shall not exceed the value of the Aircraft as declared in the Policy.
BABES IN ARMS CLAUSE
This Policy is extended to allow for the carriage of babes-in-arms in addition to the designated number of Passengers stated in the Schedule of Aircraft, subject to the maximum take-off weight of the Aircraft not being exceeded and manufacturers’ guidelines not being breached.
PROFIT COMMISSION (SECTION I ONLY)
After expiry of the Policy and following the receipt by the Insurer of the final adjustment of all premium due and settlement of all claims in respect of this period of insurance and subject to renewal with the Insurer for a further period of twelve consecutive months it is agreed to return to the Insured a profit commission of 15% (or such percentage as stated in the schedule) of the net ascertained profit in respect of this period of insurance.
The net ascertained profit shall be calculated by deducting the "outgo" from the "income" as follows:
Income:
75% (or such percentage as stated in the schedule) of all hull premium less all returns of hull premium
Outgo:
Total of settled claims and related expenses less any salvages and recoveries.
PRO-RATA CANCELLATION CLAUSE
It is hereby declared and agreed that in the event of the aircraft being sold and no claim having occurred or costs being incurred by the Insurer, the Insured will be entitled to a pro-rata refund premium subject to the Insurer retaining a minimum of 20% of the annual premium.
AIRCRAFT LAYING-UP RETURNS CLAUSE
In the event of the Aircraft hereby insured being laid up, the Flight and Taxying cover under all Sections of this Policy shall be suspended during the period of lay-up and credit under the Aircraft loss or physical damage Section of the Policy will be adjusted on expiry of the Policy subject to the following conditions:-
1. Notice must be given to Insurer by the Insured prior to and upon termination of the lay-up.
2. No return of premium shall be made
(a) in respect of any period during which the Aircraft is laid up for scheduled maintenance, overhaul or repair;
(b) unless the period of lay-up is of at least 30 consecutive days, but should the period defined in (a) occur during lay-up then the Insured shall be entitled to add the lay-up days prior to and subsequent to the period defined in (a) in computing the period of 30 days or more for which a return may be made;
(c) if a claim in respect of the Aircraft concerned has been made on this Policy.
Subject always to the foregoing conditions the return shall be 75 per cent of pro rata of the difference between the annual Flight risk premium and the annual Ground risk premium (as agreed by the Insurer) for the actual period of lay-up as defined above.
In the event of the Aircraft being laid up for a period of 30 days or more, a part only of which attaches to this Policy and part to the renewal Policy, then this Policy shall return
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