AVIATION INSURANCE

The historical development of aviation can be traced as far back as the early 1800's.  However both World War I & II gave a great stimulation to the development of commercial aviation to the point where it is presently. 

Air Transport is considered to be one of the fastest means of transportation world wide, and not only is it fast, it is also one of the most comfortable as it transport both passengers and cargoes from one point to the other thereby easing movement. It is also of the most disastrous means of transportation when involved in an accident due to the loss of lives and property involved talk less of the financial burden on the shoulder of the aircraft owners. But all thanks goes to insurance experts that has been able to help aircraft owners reduce the financial burden involved by accepting part or all of the aviation risks of the aircraft owner in return for a considerable financial payments made at certain times to help cover such aviation risks. 

The underwriting of such aviation risks requires sound knowledge about air transportation in general, aviation management, aviation mechanics, aviation safety and a deep technical know how of aviation insurance by aviation insurers. However, all these are lacking within the Nigerian Insurance Industry which is why the course titled Aviation Insurance was introduced across all tertiary institutions (polytechnics and universities) to enable future young underwriters garner the theoretical and practical experience needed to positively stimulate the Nigerian Insurance Industry. 

INS 228: Introduction to Aviation Insurance is an ND II Full-Time and ND II Yr III Part-Time two (2) units core course for undergraduate students undergoing Insurance Programmes. The course consists of eleven (11) substantive and relevant topics. The present textbook for the course is written by Dr, S. A Raji, and it has been developed to suit undergraduate students of Federal Polytechnic Offa, and other higher institutions of learning, and even post graduate students undergoing insurance as a discipline in any institutions by adopting an approach that highlights the key areas of aviation insurance.

Student who successfully completes the course will surely develop a positive attitude and deep understanding of aviation insurance. Students are required to avail themselves of the opportunities that abound in modern libraries such as the Internet, E-mail and some current collections of textbooks on aviation insurance. 

This course guide briefly explains to students what the course is all about, the course materials to will be used, and how students are expected to cover the course. There will be regular lecture classes that are linked to the course and students are advised to attend the sessions. 

OUTLINE OF INTRODUCTION TO AVIATION INSURANCE

 1. HISTORICAL DEVELOPMENT OF AVIATION

• World
• UK
• USA

2. NIGERIA AVIATION INDUSTRY (OVERVIEW)

• History of Aviation in Nigeria
• Aviation geography
• Regulatory Authorities and Agencies in Nigeria aviation sector (foreign & domestic)
• Importance of Air Transport to the Nigerian Economy

3. AVIATION INSURANCE

• Historical development of Aviation insurance
• UK development
• USA development
• NIGERIA development
• Nigerian Aviation Insurance Pool
• African Aviation Insurance Pool
• Relationship of aviation insurance to other branches of Insurance

4. PRINCIPLES OF INSURANCE AND IT'S APPLICATION TO AVIATION INSURANCE

• Uberima fidei
• Insurable interest
• Indemnity 
• Subrogation
• Contribution

5. TYPES OF AVIATION INSURANCE POLICIES

• Hull insurance
• Passenger legal liability insurance
• 3rd party legal liability insurance Loss of license insurance
• Breach of warranty insurance
• Airport operators legal liability insurance
• Personal accident insurance
• Personal accident insurance for civilian aircrew
• Product legal liability insurance
• Loss of use insurance
• Aviation war risk cover
• Aviation terrorism insurance cover

6. RATING METHODS UNDER AVIATION INSURANCE

• Rate % on vale of aircraft
• Rate per 1000 aircraft miles
• Short period rates
• "70/30" basis method
• Component parts clause
• Excess of loss method of rating
• Factors governing rating

7. AVIATION UNDERWRITING

• Private aircraft
• Commercial aircraft
• Tuition aircraft
• Air ambulance

8. AVIATION INSURANCE DOCUMENTS

• AVN I
• Slip
• Others

9. AVIATION LAWS

• Paris convention 1919
• Warsaw convention 1929
• Chicago convention 1944
• Civil Aviation Act 1971

10. MARKET PROCEDURE IN AVIATION INSURANCE BUSINESS

• New business
• Small business
• Large business
• Slip
• Accommodation line
• Overdone slip
• Short closing
• Payment

11. TYPES OF AVIATION INSURERS

• Group or pools of Insurance companies
• Specialist companies
• Agencies
• Lloyd's of London
• US Insurance Exchange
• Department of Composite Companies

RELEVANT LINKS FOR AVIATION BUSINESS IN NIGERIA

1. Federal Ministry of Aviation (FMA) 
2. Federal Airport Authority of Nigeria (FAAN) 
3. Nigeria Civil Aviation Authority (NCAA)
4. Nigerian Airspace Management Agency (NAMA)
5. NIgerian Meteorological Agency (NIMET)
6. Nigeiran College of Aviation Technology (NCAT)
7. Accident Investigation Bureau (Nigeria)

................................................................................................................................................................................................ 

ASSIGNMENT              REGISTRATION           DOWNLOADS