AIRCRAFT POLICY
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).
(b) If
the Aircraft is insured hereby for the risks of “Flight” (hereinafter defined),
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.
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” (hereinafter defined);
(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.
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 the Insured.
(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 the 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.
As used herein “Engine” means an engine for
propulsion or auxiliary power complete with all parts necessary for test cell
running.
(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.
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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
Limits
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.
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.
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SECTION III
LEGAL LIABILITY
TO PASSENGERS
Documentary
Precautions
Effect of noncompliance
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 instructions
neither of those being regarded
as a passenger.
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Employees
and others
Number of
Passengers
2. EXCLUSIONS APPLICABLE TO THIS
SECTION ONLY
The Insurer shall not be liable
for injury (fatal or otherwise) or loss:
(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.
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SECTION IV
Purpose and
Manner of use
Licences
Geographical
Limits
Pilots
Transporation
by other
conveyance
Landing and
Take-off areas
Contractual
Liabillity
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 hereto,
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
appropriate 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 then 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 or
at an unlicensed landing ground at night, 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 hereto) 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 organisations (who undertake any
repairs to or maintenance of the
Aircraft),
(ii) Hangarkeepers and suppliers
of fuel,
(iii) Any airport owner or
airport licence 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 insurance
not been effected;
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Radioactivity/
Nuclear Risks
War hijacking
And other perils
Asbestos
Date recognition
9. This Policy 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)
(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
manufacturers 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.
12. This policy does not cover
any claim, damage, injury, loss, cost, expense
or liability (whether in
contract, tort, delict, 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):
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Compliance
with Air
Navigation
Orders etc.
Variation
in risk
Instruction
Due
observance
(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 date or information in
connection with; the change of
year from 1999 to 2000, and/or the change of
date from 21 August 1999 to 22
August 1999, and/or any other 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 Insurers 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 Insurers 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.
(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.
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Claims
procedure
Control of
Proceedings
Subrogation
More than
one Insured
False and
fraudulent
claims
Cancellation
Assignment
Non marine
Insurance
Interpretation
Due diligence
Prescription
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 cooperate
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 10 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.
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 give 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,
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Premium
Payment
Full premium
if loss
Penalties
Two or more
Aircraft
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
Insurers 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 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” and use for the carriage of 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.
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(l) “RENTAL” means rental, lease, charter, or hire
by the Insured to any person,
company, or organisation for “Private, Pleasure”
and “Business” 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
USES” in the Schedule.
(m) “SALES AND DEMONSTRATION” means the situation
arising whenever the
Aircraft is made available for sale by one party to
another which includes
negotiations arising there from as well as the
demonstration of the Aircraft or
parts thereof on the ground or in the air whilst
the Aircraft is actually flown.
Sales and Demonstration is not insured under this
Policy unless specifically
declared to the Insurer and stated under “SPECIAL
USES” in the Schedule
hereto.
(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.
(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 “Additional Uses” in the
Schedule hereto.
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SECTION V
WAR RISKS EXTENSION
1. LOSS OF OR DAMAGE TO AIRCRAFT
Subject to the terms and conditions and limitations
set out below, this Policy covers loss of or damage to
the Aircraft nominated in the Schedule against
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) 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 Policy 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;
(b) Extra expenses necessarily incurred following
confiscation, etc. (as Section V item
1(e) above) or hi-jacking, etc. (as Section V item
1 (f) above) of any Aircraft described in the
Schedule
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No cover will be provided under this Section of the
Policy 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 Policy 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) 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 Section V item 2, any other
consequential loss; whether following upon loss of
or damage to the Aircraft or otherwise.
4. GENERAL CONDITIONS
(a) This Policy 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 Underwriters;
(c) Material change shall be understood to mean any
change in the operation of the Insured which
might reasonably be regarded by the Underwriters as
increasing their 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 Policy shall be conditions precedent to any
liability of the Underwriters to make any
payment under this Policy; 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 Section V, and
the Schedule, Underwriters hereon agree to
follow the Hull “All Risks” Policy in respect of
Breach of Warranty Cover, Hold Harmless
Agreements and Waivers of Subrogation.
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5. CANCELLATION, AUTOMATIC TERMINATION AND
SUSPENSION
(a) Underwriters 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 this
insurance.
(b) This insurance may be cancelled by the
Underwriters 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.
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CLAUSES INCORPORATED IN AND FORMING
PART OF THE POLICY
• 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, 146 Boeing Road
East, Elma Park, Edenvale, R.S.A
• 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 Insurers 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 Company 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$20,000.00 (TWENTY
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.
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• 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.
• 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.
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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 Regent
Insurance Company Limited 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.
• JOINT INSURED’S CLAUSE
Notwithstanding the inclusion herein of more than
one Insured, whether by endorsement or otherwise,
the total liability of the Company in respect of
any or all Insureds shall not exceed the limit(s) of liability
stated in the Schedule.
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• PILOT CURRENCY CLAUSE
Notwithstanding the addition of any named pilot/s
or open pilot warranty on this policy. It is hereby noted
any pilot flying the aircraft/s stated in the
schedule are required to have flown the same make and
model at least 60 days preceding any flight on the
insured aircraft.
In the event of a loss occurring where the pilot
does not comply with this requirement the following will
apply unless otherwise endorsed or when instruction
is being carried out:
Single Engine Piston (Fixed-wing): 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.
Multi Engine Piston (Fixed-wing): 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.
Turbine Engine Aircraft (Fixed-wing): Where
deductible is USD 25,000 each and
every loss becomes USD 30,000 each and every loss.
Jet Engine Aircraft (Fixed-wing): Where deductible
is USD 50,000 each and
every loss becomes USD 75,000 each and every loss.
Piston Engine (Rotor-wing): Where deductible is 5%
of Agreed Value each and
every loss becomes 6% of Agreed Value each and
every loss.
But
Where deductible is 10% of Agreed Value each and
every loss becomes 12% of
Agreed Value each and every loss.
Turbine Engine (Rotor-wing): Where deductible is 5%
of Agreed Value each and every loss becomes
6% of Agreed Value each and every loss.
• 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 to Parachutists and/or Skydivers.
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• 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 Insurers.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).
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• 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 of External Loads and/or Under Slung and/or
Winching Operations.
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• 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 extension 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 extension 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 AIRCRAFT LIABILITIES CLAUSE
(1) It
is hereby understood and agreed that all sub-paragraphs other than 10(b)
of the War, Hi-jacking and Other Perils Exclusion
Clause forming part of this Policy are deleted
subject to all terms and conditions of this Clause.
(2) EXCLUSION applicable only to any cover extended in respect of
the deletion
of sub-paragraph (a) of War, Hi-jacking and Other
Perils Exclusion Clause.
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 Insurer’s liability in respect of
coverage provided by this Endorsement shall be a sublimit
of US$10,000,000 or the
applicable limit, whichever the less, any one Occurrence and in the
annual aggregate, except with respect of passengers
to whom the full Policy limit(s) shall apply.
This sub-limit shall apply within the full Policy
limit and not in addition thereto.
(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 War, Hi-jacking and
Other Perils Exclusion Clause
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 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
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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)
Insurers 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, Insurers may give notice of
cancellation of one or more parts of cover provided
by paragraph 1. of this Endorsement by
reference to sub-paragraphs c,d,e,f and/or g War,
Hi-jacking and Other Perils Exclusion
Clause – 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 Insurers or the Insured
giving notice to become effective on the expiry of
seven days from 23.59 hours GMT in 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
endorsement 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 endorsement shall not in any event
exceed the amount stated in the Schedule, less
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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
endorsement.
(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 Endorsement 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 within 30 days of
the 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.
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• FORCED LANDING CLAUSE
Insurers 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 always that
Insurers’ 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 Insurers, the
Insured will be entitled to a pro-rata refund premium
subject to the Insurers retaining a minimum of 20%
of the annual premium.
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REGENT INSURANCE COMPANY LIMITED
An authorised financial services provider
DISCLOSURES REQUIRED IN TERMS OF THE FINANCIAL
ADVISORY AND INTERMEDIARY SERVICES ACT 37 OF
2002
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