Serving the interests of owners, financial institutions and lessors
Policyholders and/or holders of aircraft are often not the owners of the aircraft. The owners of aircraft have a special interest in their rights being taken into account when a claim is filed.
To this end, the insurance contract can specify what parties are to be added to the hull insurance, be they joint policyholders for liability or beneficiaries.
Special documents as addenda to the policy, such as the risk coverage certificate or the confirmation pursuant to clause AVN67B/C, give financial institutions and lessors the chance to decide on the pay-out in the event of a claim. A similar document can also be issued for an owner who, for example, makes his/her aircraft available to an aviation aircraft operator/manager.
These documents contain the aircraft details, the value of the aircraft, the amounts of liability cover and the hull insurance excess.
They also contain the name and address of the owner / financial institution / lessor and other contractual partners.
It is also set out that the insurer or broker must notify the owner if the policy’s cover is at risk (such as if the premiums are not paid).
These documents are issued by the broker or insurer. Furthermore, the financing parties often require a broker’s letter of undertaking in which the broker acknowledges duties to provide information etc.