Understanding insurance claims

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The year 2020 was, for almost everybody, the most chaotic year, due to the coronavirus pandemic, and there was no exception for the aviation sector which has suffered the most sensitive collapse in its recent history. Characterised by a long period of lockdown and governmental restrictions taken to curb the pandemic, the measures certainly had a direct impact on aviation.

In contrast to 2020, the aviation industry has demonstrated a slow recovery in 2021. Although, with some improvement, the insurance sector suffered an increased frequency of claiming, impacted by a prolonged grounding period, plus the challenges of the restarting flight period as well, increasing exposure and risky situations, and therefore, the probability of claims. From the claims we handled during the period 2020-2021, some of the most significant occurrences are reported below.

Sadly, three of the accidents resulted in deaths or serious injuries. Luckily one of those involved has been recovering, however, two accidents resulted in fatalities.

As far as material damages are concerned, there were six total losses during the period, with diverse causes, all occurring during a flight, except one, an 'act of god' on the ground where a strong gust of wind unhitched a hangar door. Obviously, in addition, many claims for partial damage were made.

It appears that claims which occurred in early 2021 shows that most of them were connected to flight risks. Why? Considering that pilots were forbidden to fly for almost all the year 2020 and suddenly get back to the sky, they could have been affected by the ‘rusty effect’, as a result, human factors have been exacerbated. In fact, this factor has been considered for a long time, as the main cause of accidents, and a similar phenomenon happens each year at the beginning flying season which coincides with the annual peak of claims reported.

But what if I have a claim?

If you have a claim, remember the following success tips to avoid a stressful experience and help navigate through the process:

• Reach out contact with your broker first

In case of a potential claim, your broker will be able to advise you on whether or not filing a claim before the insurer, and if that is the case, how to proceed, they work for your best interest.

• Be diligent filling your claim

In case of an accident, it’s better for you to be prompt in reporting the claim. Moreover, insurance policies always set a maximum

Paola Sepúlveda

Looks At Claims

period to do so, which is usually five days, reduced to two in case of a theft. Not respecting the notification period may lead to a denial of the claim from the insurer!

• Provide complete and correct information

The following kind of info must be included when a declaration is sent: The circumstances of the accident, location and date of the loss, report of the damages and pictures, contact details of the insured, such as email and mobile phone number, contact details of the passengers and third parties involved, as well as potential witnesses, in some cases a police report or aviation authority report is required.

You may also need to provide the inventory of the damage, an estimation of the repair, and responding to information requested by the insurance company. The more cooperative you are, the faster the resolution.

Lastly, explain the facts accurately, missing information and omission might result in claim settlement delays for your claim, or even in a denial of coverage if the information is intentionally mistaken.

Be proactive: take safety measures

If you’re able to deal with the aircraft damage, it may be necessary for you to take all safety measures to prevent any further deterioration for the aircraft, and any damage the wreck could cause to third parties. You are not meant to initiate any repair or remove the damaged aircraft without previous agreement from the loss adjuster. Otherwise, the insurer could reject the claim. Be sure to take pictures before and after the repairs, and save the related invoices too.

Stay in contact with insurance broker, who follows all the steps of claim resolution

Claims are not written guidelines, they sometimes take time to be resolved. Even if they sometimes have similar circumstances, they are indeed different from each other. We suggest you allow your broker to guide you. Some cases are more complex than others, and problems or damage not detected at the beginning could arise, so, better stay updated and be assisted, for the success of your file.

Air Courtage Assurances, as an aviation specialised insurance broking company, has ensured, and will continue to ensure, its clients every possible support to face the ongoing challenges and changes suffered after the Covid pandemic – so you are not alone! If you have a claim to report, it is here to accompany you. Do not hesitate to get in touch with us at: sinistres@air-assurances.com n