國泰產物 aircraft hull spares,war and liability insurance · crew and passengers of the...

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國泰產物 Aircraft Hull Spares,War and Liability

Insurance

國泰產物 AIRCRAFT HULL SPARES, WAR AND LIABILITY INSURANCE

THE SCHEDULE

POLICY NO.: XXXXXXX

THE INSURED: XXXXX and associated and affiliated and subsidiary companies for

their respective rights and interests.

Address: XXXXXXXXXXXXXXXXXXX

PERIOD:

From XXXXXXXXXXX to XXXXXXXX both days inclusive

Local Standard Time at the above address of the Original Insured.

INTEREST: Hull All Risks

Accidental loss of or damage to Aircraft as per the Schedule of

Aircraft.

Hull War Risks

Loss of or damage to Aircraft as per the Schedule of Aircraft arising

out of War and Allied Perils.

Spares All Risks

All risks of physical loss or damage to Property being engines, spare

parts and equipment, flight spares kits (including whilst attached to

the aircraft), ground support equipment (including unlicensed

vehicles), tools, components and equipment destined to be fitted to

or to form part of an aircraft or to be used in connection with the

servicing, maintenance or repair of aircraft, being the property of the

Insured or the property of others for which the Insured is responsible

and has been requested to effect insurance, which loss or damage is

sustained during Period of insurance (including whilst in transit by

any means of conveyance).

Third Party and Passenger Liability

Legal Liability to Third Parties and Passengers (including baggage

and personal articles) arising out of Aircraft as per the Schedule of

Aircraft.

Personal Accident (Air Travel only)

Crew and Passengers of the Aircraft whilst engaging in Air Travel

(being in, on or boarding an aircraft for the purpose of flying therein

or alighting therefrom) in Aircraft as per Schedule of Aircraft.

Premises, Hangarkeepers and Products Liability

The Insured's Premises and Hangarkeepers Liability arising out of

premises owned, occupied or leased by the Insured (and elsewhere

in the course of their duties) and Products Liability.

Original Policy Sums Insured:

Hull All Risks

Agreed Values as per the Schedule of Aircraft up to a maximum

Agreed Value of USD XXXXXX any one Aircraft.

Hull War Risks

Agreed Values as per the Schedule of Aircraft subject to a maximum

Agreed Value of USD XXXXXX any one Aircraft.

Extortion Expenses:

90% of 10% of Aircraft Agreed Value any one loss and in all.

Warranted remaining 10% uninsured.

Hi-jack and Confiscation Expenses:

10% of Aircraft Agreed Value any one loss and in all.

Spares All Risks

USD XXXXXX any one building/ location/ sending.


Combined Single Limit (Bodily Injury and Property Damage):

USD XXXXXX each Accident


Capital Sum Insured (Lloyd's Scale E, Benefits 1-7)

Crew: USD XXXX each Insured Person.

Passengers: USD XXXX each Insured Person.


Combined Single Limit (Bodily Injury and Property Damage):

USD XXXXXX any one accident and in the annual aggregate in

respect of Products Liability.

Hull All Risks (not applicable to any form of Total Loss).

USD XXXX each Accident

SUM REINSURED:

DEDUCTIBLES:

In the event of an accident arising hereon involving the application

of more than one deductible, then the highest applicable deductible

shall be applied as an aggregate deductible for all losses arising out

of that accident.

Spares All Risks

Nil.

GEOGRAPHICAL

LIMITS:

Worldwide, subject to Kiln Geographical Areas Exclusion Clause

LSW 617G:

1. Notwithstanding any provisions to the contrary and subject to

clauses 2 and 3 below, this Policy excludes any loss, damage or

expense howsoever occurring within the geographical limits of

any of the following countries and regions:

(a) Algeria, Burundi, Cabinda, Central African Republic,

Congo, Democratic Republic of Congo, Eritrea, Ethiopia,

Ivory Coast, Liberia, Mauritania, Nigeria, Somalia, The

Republic of Sudan, South Sudan.

(b) Colombia, Ecuador, Peru.

(c) Afghanistan, Jammu & Kashmir, Myanmar, North Korea,

Pakistan.

(d) Georgia, Nagorno-Karabakh, North Caucasian Federal

District.

(e) Iran, Iraq, Libya, Syria, Yemen.

(f) Any country where the operation of the insured Aircraft is

in breach of United Nations sanctions.

2. However coverage pursuant to this Policy is granted:

(a) for the overflight of any excluded country where the flight

is within an internationally recognised air corridor and is

performed in accordance with I.C.A.O. recommendations;

or

(b) in circumstances where an insured Aircraft has landed in an

excluded country as a direct consequence and exclusively

as a result of force majeure.

3. Any excluded country may be covered by underwriters at terms

to be agreed by the Slip Leader only prior to flight.

London Aircraft Insurance Policy AVN 1C (no proposal)

Aircraft Spares Wording LPO344C

Lloyd's Accident Policy K(A) NMA2712 (no proposal)

Aviation Hull "War and Allied Perils" Insurance Policy LSW555D.

48FLY00001 - Sections 1, 2 and 3

CONDITIONS:

and as amended herein, incorporating the following:

Applicable to all Sections

Date Recognition Exclusion Clause AVN 2000A.

Nuclear Risks Exclusion Clause AVN 38B.

Contracts (Rights of Third Parties) Act 1999 Exclusion Clause

AVN 72.

Sanctions and Embargo Clause AVN111.

Coverage is extended to include licence up-rating flights,

maintenance flights and Certificate of Airworthiness flights with

provision for such flights to be performed by pilots not conforming

with the Pilot conditions hereon as long as such pilots are approved

by the appropriate local authority to perform such flights. This

Policy also applies to other flights performed under CAA permit or

waiver and test/delivery/ferry flights as required.

This Policy remains in force when mechanics/engineers as approved

by the Insured in accordance with local Airworthiness Authority

regulations are Taxiing an insured Aircraft, or, in the case of rotary-

wing Aircraft, are running its engines other than for the purposes of

Flight.

The notice of cancellation period applicable to London Aircraft

Insurance Policy AVN 1C is amended to 30 days; this period shall

also apply to all other coverages forming part of this Policy except

that the cancellation provisions contained in the following shall

remain paramount:-

- Nuclear Risks Exclusion Clause AVN 38B

- Extended Coverage Endorsement (Aviation Liabilities)

AVN 52E/G

- Aviation Hull "War and Allied Perils" Policy LSW555D

- Premium Payment Clause AVN 6A

New Finance/Lease Contracts subject to Airline Finance/Lease

Contract Endorsement AVN 67B unless agreed otherwise by

Insurers, are automatically included herein.

Insurers agree that with respect to all existing AVN67 A/B

Endorsements a premium of USD100 or as previously agreed

(receipt of which is acknowledged) has been charged.

Existing Airline Finanace/Lease Contract Endorsement AVN 67B

contract Parties and Contracts are:

Contract Party: Taichung Bank Leasing Corporation Limited.

Contract: Aircraft Finance Agreement.

Additional Insureds, breach of warranty amounts and parties,

waivers of rights of subrogation, hold harmless agreements, loss

payees and other contractual agreements already in existence at

inception or those required within the normal scope of the Insured's

operations are automatically included hereunder. Other such

provisions entered into require prior approval of Insurers.

It is noted and agreed that ACASS Canada Limited, its officers,

directors, shareholders, employees, pilots and agents are included as

additional Insureds, with a waiver of rights of subrogation, for their

respective rights and interests.

Nothing in the foregoing paragraphs shall be considered to extend

the scope of this Policy to risks not insured hereunder unless the

same has been agreed by the Insurers subscribing to this Policy.

Pilots: As approved by the Insured providing they have a

minimum of ATPL, 2,500 hours total fixed wing time

including 750 hours multi engine jet as pilot in

command, and 150 hours make and model.

Co-pilots: XXXXXX.

Warranted that all Pilots have successfully completed

full motion simulator training on the applicable aircraft

make and model in the previous 12 months.

Warranted two crew operation at all times.

Uses: Business, and continuation training of approved pilots.

This Policy shall be governed by and construed in accordance with

the law of Taiwan - Republic of China and each party agrees to

submit to the exclusive jurisdiction of the Courts of Taiwan -

Republic of China in the event of a dispute arising hereunder.

Hull All Risks

Additions and Deletions (Combined) AVN 19A.

Date Recognition Limited Coverage Clause AVN 2001A.

Agreed Value Clause AVN 61.

Flying Clothing and Effects Clause AVN 75. Limit USD 10,000 any

one person, nil deductible.

Supplementary Payments Clause AVN 76, all paragraphs to apply.

Limit 10% of Aircraft Agreed Value each Accident and in the annual

aggregate over all sections to which this clause applies.

Unauthorised Use Clause AVN 77 – theft only.

Forced Landing Clause AVN 78.

Insurers agree to waive their rights of subrogation against Aircrew of

the Aircraft in respect of loss of or damage to the Aircraft.

A Constructive Total Loss may be declared in the event that the cost

of repairs are estimated at 75% or more of the Agreed Value of the

Aircraft.

The Insurers agree to automatically include owners of loaned/leased

engine(s) attached to an insured Aircraft as loss payees in respect of

Section I of London Aircraft Insurance Policy AVN 1C in respect of

the engine(s) for their respective rights and interests but only with

respect to the operation of the Aircraft by the Insured.

Agree in the event an Aircraft insured hereon is fitted with a leased /

financed engine(s) or component(s), that the agreed value of such

Aircraft is automatically increased at nil additional premium by the

amount required to be insured under the lease / finance agreement in

respect of such engine(s)/component(s).

Where such amount is not specified in the lease / finance agreement,

this shall be the fair market value of such engine(s) / component(s)

as agreed between Insurers and the owners of the engine(s) /

component(s) at the time of the loss. Subject always to the

maximum hull agreed value not being exceeded and benefit of

salvage to Insurers. However the foregoing increase in the stated

agreed value shall not be taken into account when calculating

whether a constructive total loss may be declared hereon.

Where required by the Insured leased / financed engines or

components whilst under Spares and Equipment coverage are

automatically included for an Agreed Value being the amount

required to be insured under the lease / finance agreement (unless

otherwise agreed by Insurers).

Replacement Aircraft Rental and Rental Parts Expenses:

If an Aircraft covered hereunder suffers accidental loss or damage

covered under this Policy, Insurers will promptly pay the Insured’s

extra expense of leasing or renting a temporary replacement aircraft

while the Aircraft is being repaired, or temporary replacement

component parts to replace the parts damaged in the loss, including

the cost of installation, removal and transportation;

This Coverage does not apply to extra expense(s) incurred:

a) unless the actual time required to repair the damaged Aircraft

or component part exceeds 7 days;

b) if another aircraft is available at no extra charge for its use;

c) if the Insured acquires through ownership, lease, lease-

purchase option, or otherwise, a permanent replacement for

the damaged Aircraft;

d) if the Insurers have agreed to pay for a total loss of the

Aircraft;

e) in excess of an aggregate limit of USD XXXX, USD XXX

per day, XX days coverage.

This policy applies to the costs of dismantling, transporting and

ferrying of Aircraft in the event of force majeure subject to such

costs not exceeding the Aircraft Agreed Value.

Coverage for Ground risks includes engine running and movement of

the Aircraft other than for the purpose of Flight.

Civil Aviation Authority Safety Regulation Group Clause LSW708A

amended to read as follows:-

Cover hereunder remains operative whilst any insured Aircraft is

being flown by any Civil Aviation Authority (or its local equivalent)

approved pilots for the purpose of any test or operation and during

such test or operation Insurers agree to waive rights of subrogation

against the Civil Aviation Authority Safety Regulation Group (or its

local equivalent) in respect of loss of or damage to the Aircraft and

include them as joint Insureds in respect of liability coverage.

Section I of London Aircraft Insurance Policy AVN 1C number of

days amended to 5 in respect of unreported Aircraft.

Airfreight of Spares Clause:

In the event of the Aircraft sustaining damage constituting a valid

claim under Section I of London Aircraft Insurance Policy AVN 1C

and necessitating the importation or exportation of aircraft spare

parts or components the Insurers agree to pay for the cost of

transportation by air of such spare parts or components up to a

maximum of 10% of Aircraft Agreed Value each Accident.

General Condition 7 of London Aircraft Insurance Policy AVN 1C is

deleted.


Asbestos Exclusion Clause 2488AGM00003.

Additions and Deletions (Combined) AVN 19A.


Passenger Voluntary Settlement Endorsement AVN 34A amended to

include crew and amended as attached. Limit USD 150,000 each

person.

Noise and Pollution and Other Perils Exclusion Clause AVN 46B

(applicable in respect of Section II of London Aircraft Insurance

Policy AVN 1C only).

Personal Injury Extension AVN 60A. Limit USD 25,000,000 any

one offence and in the annual aggregate being within the overall

Policy limit and not in addition thereto.

Liability to Pilots and Crew Clause AVN 73.

Pilot Indemnity Clause AVN 74.

Supplementary Payments Clause AVN 76, all paragraphs to apply,

limit 10% of Aircraft Agreed Value each Accident and in the annual


Unauthorised Use Clause AVN 77 – theft only.

Medical and Related Expenses Inclusion Clause AVN 80 (including

pilot(s) and operational crew). Limit USD 150,000 per person.

Civil Use of MOD Airfield Endorsement AVN 95, Policy limit to

apply, nil additional premium.

Cargo Legal Liability Endorsement AVN 92 (applicable to Section II

of AVN1C), amended to include mail. Limit USD 500,000. Nil

deductible.

Ground Handling/Servicing Agreements LSW704.

Civil Aviation Authority Trainee Endorsement LSW707A.

The Insurers agree to automatically include owners of loaned/leased

engine(s) attached to an insured Aircraft as additional Insureds in

respect of Sections II and III of London Aircraft Insurance Policy

AVN 1C in respect of the engine(s) for their respective rights and

interests but only with respect to the operation of the Aircraft by the

Insured.

This Endorsement does not provide coverage for the additional

Insured with respect to claims arising out of their legal liability as

manufacturers, repairers, suppliers or servicing agents and shall not

operate to prejudice Insurers' rights of recourse against the additional

Insured as manufacturers, repairers, suppliers or servicing agents

where such rights of recourse would have existed had this

Endorsement not been effected under this Policy.

It is noted and agreed that in respect of flights into, over or out of

Mexico, and to the extent that particular limits of liability are

required by Mexican Law, the Insurers agree to amend coverage

afforded by this Policy to become excess of or a insurance of the

policy issued by a company agreed by the Insurers and to pay any

additional charges including taxes resulting there from.

Civil Aviation Authority Safety Regulation Group Clause LSW708A

amended to read as follows:-

Cover hereunder remains operative whilst any insured Aircraft is

being flown by any Civil Aviation Authority (or its local equivalent)

approved pilots for the purpose of any test or operation and during

such test or operation Insurers agree to waive rights of subrogation

against the Civil Aviation Authority Safety Regulation Group (or its

local equivalent) in respect of loss of or damage to the Aircraft and

include them as joint Insureds in respect of liability coverage.

Babes In Arms Clause

Noted and agreed to allow babes in arms in addition to the

designated number of Passengers and cover under Section III of

London Aircraft Insurance Policy AVN 1C applies accordingly.

Maximum take off weight of Aircraft not to be exceeded.

Coverage 1(b) of Section III of London Aircraft Insurance Policy

AVN 1C is amended by deleting the words 'arising out of an accident

to the aircraft'.

All sub-paragraphs except (b) of General Exclusion 10 of London

Aircraft Insurance Policy AVN 1C - War, Hi-jacking and Other

Perils Exclusion - are deleted in accordance with Extended Coverage

Endorsement (Aviation Liabilities) AVN 52E sub-limit

USD 150,000,000 any one Accident and in the annual aggregate.

General Condition 7 of London Aircraft Insurance Policy AVN 1C is

deleted.

Notwithstanding anything contained herein to the contrary the

coverage under this insurance is extended to include the Insured's

liability for bodily injury to employees acting on behalf of the

Insured but excluding liability arising from any obligation which the

Insured or any company as their insurers may be held liable under

any Employers Liability Act(s) or Workmens Compensation Law(s).

Insured is deemed to include subsidiary and associated companies (if

applicable) and officers, servants, agents or employees of the Insured

and the crew of the Aircraft.

Two Way Cross Liability Clause LSW 715.

Trespassers Costs Clause:

Insurers agree to settle reasonable claims for loss of or damage to

crops or other property, caused by trespassers, following a crash or

forced landing of the Aircraft, if such loss or damage is not

recoverable from the trespassers.

Directors, officers, agents and emplyees of the Insured are included

as Passengers hereunder and are covered under Section III of London

Aircraft Insurance Policy AVN 1C whilst travelling in an Aircraft as

per the Schedule of Aircraft during the course of their duties, but

excluding liability arising from any obligation which the Insured or

any company as their insurers may be held liable under any

Employers Liability Act(s) or Workmens Compensation Law(s).

General Exclusion 7 of Section IV (A) of London Aircraft Insurance

Policy AVN 1C is deleted and the following Condition applicable to

Section III is added in its stead:

If in any Accident resulting in a claim under this Policy the number

of passengers in the Aircraft exceeds the number stated in the

Schedule, then provided that the carriage of such persons is not in

breach of any regulations, this Policy shall remain in full force and

effect, provided always that the Aircraft maximum take-off weight

remains within the manufacturers prescribed limits.

Trip Interruption Expenses Clause:

This Policy will reimburse the Insured for reasonable expenses for

food, travel and lodging of passengers incurred by or on behalf of the

Insured from the place where the Aircraft suffers accidental loss or

damage covered under this Policy, to the next scheduled stopping

place of the Aircraft. Limit USD 10,000 per Passenger.

Spares All Risks


Exclusions 4 (b) of Aircraft Spares Wording LPO 344C is deleted.

Condition 9. Reporting and Premium Adjustment Clause of Aircraft

Spares Wording LPO344C is deleted in its entirety.

Spares coverage is extended to include fly-away spares kit whilst on

board the Aircraft insured hereunder. Limit USD 500,000 any one

kit. Deductible USD 1,000 any one kit.

Exclusion 4 (h) of Aircraft Spares Wording LPO344C is deleted.


Exclusions 1 and 4 of Lloyd's Accident Policy K(A) Form

NMA2712 are deleted.

Hi-jack Clause NMA 1732.

Hull War Risks

Supplementary Payments Clause AVN 76, all paragraphs to apply.

Limit 10% of Aircraft Agreed Value each Accident and in the annual


Innocent Operators Coverage Clause AVN 89.

All reference in Section Two of the policy wording to “90% of” as

regards the limit is deleted.

Including cover for confiscation [and other perils as defined in

exclusion (b) of the Policy] by Government of Registration.

In the event of an outbreak of War between any of the following

States, namely, the United Kingdom, the United States of America,

France, the Russian Federation and the People's Republic of China,

only paragraph (a) of Section One of the Policy coverage shall

terminate automatically.

In the event of termination or cancellation of this Policy pro rata

premium shall be returned to the Insured.

General Condition 4 of the Policy is amended to include "additional

Insured(s), lienholders/contract parties, contracts and agreements and

additions and deletions of Aircraft".

Coverage hereunder other than paragraph (a) of Section One of

Aviation Hull "War and Allied Perils" Insurance Policy LSW555D

(04/06) is extended to apply to loss of or damage to the spares and

equipment which are otherwise insured hereunder for Spares All

Risks coverage.

Institute War Clause (Air Cargo) CL 258 (01/01/82), Institute War

Clauses (Cargo) CL 255 (01/01/82), Institute Strikes Clauses (Cargo)

CL 256 (01/01/82) and Institute Strikes Clauses (Air Cargo) CL 260

(01/01/82) shall apply in respect of the spares and equipment (as

above) whilst in transit by sea or air. In respect of Institute Strikes

Clauses (Cargo) CL 256 (01/01/82) and Institute Strikes Clauses (Air

Cargo) CL 260 (01/01/82) 7 days notice of cancellation by either

party shall apply this period reducing to 48 hours in respect of

sendings to or from the United States of America.

Notice, effective on the expiry of the above mentioned period(s)

from midnight local standard time at the address of the Insured stated

under Insured herein on the day on which notice is issued.

Coverage is limited to USD 2,000,000.


Asbestos Exclusion Clause 2488AGM00003.


Exclusion 2 of Ariel Airport Owners and Operators Liability

Insurance Policy 48FLY00001 is amended to read as follows:

2(a) Liability for which compulsory insurance or security is

required by any applicable law governing road traffic or, in the

absence of any applicable law, to liability arising from the use

of any vehicle upon the public highway.

In respect of any such liability arising from accidents within

the confines of an airport or airfield this exclusion does not

apply:

(i) if there is no such applicable law

(ii) to the liability of the Insured to pay an amount which is

in excess of:

(a) any prescribed limit that is required to be insured

where insurance may be effected to comply with the

law whether the Insured effects an insurance policy

in respect of such liability or not

(b) the limit of liability of the insurance policy effected

by the Insured insuring such liability

whichever is greater

2(b) Bodily injury or property damage caused by any Ships,

Vessels, Craft or Aircraft owned, chartered, used or operated

by or on account of the Insured, but this exclusion shall be

deemed not to apply to aircraft owned by others which are

on the ground and for which indemnity is otherwise granted

under Section 2 of this Policy whether such Section is

insured hereunder or not.

In respect of Ariel Airport Owners and Operators Liability Insurance

Policy 48FLY00001 - Insured's operations are deemed to be:-

Aircraft Operator.

General Exclusion 4 of Ariel Airport Owners and Operators Liability

Insurance Policy 48FLY00001 is deleted and replaced by War, Hi-

Jacking and Other Perils Exclusion Clause (Aviation) AVN 48B with

all sub-paragraphs except (b) deleted in accordance with Extended

Coverage Endorsement (Aviation Liabilities) AVN 52G sub-limit

USD 150,000,000 any one accident and in the annual aggregate.

SCHEDULE OF AIRCRAFT:

Make/Model Registration Agreed Value Passenger/ Crew Seats

XXXXXXX XXXX USD XXXXX XX / X

Risks covered are Flight, Taxiing and Ground. Aircraft is Landplane.

EXPRESS

WARRANTIES: Warranted that all Pilots have successfully completed full motion

simulator training on the applicable aircraft make and model in the

previous 12 months.

Warranted two crew operation at all times.

This Insurance shall be governed by and construed in accordance

with the law of Taiwan - Republic of China and each party agrees

to submit to the exclusive jurisdiction of the Courts of Taiwan -

Republic of China in the event of a dispute arising hereunder.

PREMIUM: (Annual and pro rata)

Hull All Risks (including consideration for Spares All Risks)

XX% of Aircraft Agreed Value.

Returning XX% in accordance with No Claim Bonus on Renewal

Clause AVN 85.

Hull War Risks

XXX% of Aircraft Agreed Value.

Third Party and Passenger Liability (including consideration for

Crew and Passenger Personal Accident and Premises,

Hangarkeepers and Products Liability)

USD XXXX each Aircraft, including Extended Coverage

Endorsement (Aviation Liabilities) AVN 52E.

CHOICE OF LAW AND

JURISDICTION:

PREMIUM PAYMENT

TERMS:

Premium payable in the following instalments in accordance with

Premium Payment Clause AVN6A (amended to delete paragraph

2):

25% due XXXX

25% due XXXX

25% due XXXX

25% due XXXX

NOTICE OF

CANCELLATION

PROVISIONS:

Insurers agree that the issuance, extending or rescinding of Notices

of Cancellation for non-payment of premium shall be at the sole

discretion of the Slip Leader only. If required, only the Slip Leader

will issue notice which shall be for and in respect of all following

insurers. Notices of cancellation for non-payment of premium that

have been issued by anyone other than the Slip Leader shall be

deemed null and void and will not withdraw or reduce the

participation of any insurer hereunder.

It is noted that should any notice of cancellation issued by the Slip

Leader reach the expiry date, then all participation of the Slip

Leader and following insurers shall be terminated and they will no

longer be deemed on risk. To avoid any termination and to rescind

the Notice of Cancellation, the overdue premium in respect of all

participating insurers must be received by Willis Limited prior to

the expiry date of such Notice of Cancellation.

Notwithstanding the foregoing, each participating insurer retains

the right to issue its own Notice of Cancellation for its own share

if:

i) the Slip Leader does not issue notice within twenty-one (21)

days of the original Settlement Due Date; or

ii) the Slip Leader issues notice within twenty-one (21) days of

the original Settlement Due Date but the full premium due is

not received by Willis Limited within forty five (45) days of

the original settlement due Date

BESPOKE OR AMENDED WORDING AND CLAUSES, WORDING SCHEDULE(S)

AND/OR DECLARATIONS AND ANY OTHER ATTACHMENTS, AS APPROPRIATE:

ORIGINAL CONDITIONS:

PASSENGER / CREW VOLUNTARY SETTLEMENT ENDORSEMENT

1. It is agreed that the Insurers will at the request of and regardless of legal liability of the Insured

offer settlement on the basis of the benefits hereinafter set forth in respect of bodily injury sustained by any pilot or operational passenger / crew member (hereinafter called “Insured Person”) caused by an Accident provided that at the time of such Accident causing such bodily injury Section III, Legal Liability to Passengers, of the London Aircraft Insurance Policy, AVN1C, is effective in respect of such Accident.

2. Provided always that: (a) benefit shall not be payable under more than one of the items of the Schedule of Benefits in

respect of the consequences of one Accident to any one Insured Person.

(b) if an Accident causes the death of the Insured Person within twelve months following the date of the Accident and prior to the definite settlement of the benefit for disablement provided for under Items 2 to 7 of the Limits of Settlement there shall be paid only the benefit provided for in the case of death.

3. DEFINITIONS 1. 'BODILY INJURY' means identifiable physical injury which (a) is caused by an Accident, and (b) solely and independently of any other cause, except sickness or disease directly

resulting from, or medical or surgical treatment rendered necessary by such injury, occasions the death or disablement of the Insured Person within twelve months from the date of the Accident.

2. 'ACCIDENT' means a sudden, unexpected, unusual, specific event which occurs at an

identifiable time and place during the Period of Insurance. Accident shall also include (a) exposure resulting from a mishap to a conveyance in which the Insured Person is

travelling; (b) disappearance. If the Insured Person is not found within twelve months of

disappearing, and the sufficient evidence is produced satisfactory to the Insurers that leads them inevitably to the conclusion that the Insured Person has sustained Bodily Injury and that such injury has caused the Insured Person‟s death, the Insurers shall forthwith pay any death benefit, where applicable, under this Insurance, provided that the person or persons to whom such sum is paid shall sign an undertaking to refund such sum to the Insurers if the Insured Person is subsequently found to be living.

3. 'PERMANENT TOTAL DISABLEMENT' means disablement which entirely prevents the

Insured Person from attending to any business or occupation for which they are reasonably suited by training, education or experience and which lasts twelve months and at the end of that period is beyond hope of improvement.

4. ADDITIONAL EXCLUSIONS The Insurers shall not be liable under the terms of this Endorsement (a) for any payment which may be used to satisfy that obligation for which the Insured or any

Company as his insurer may be held liable under workers compensation, employers liability, unemployment compensation or disability benefits law or any similar law;

(b) for bodily injury to any Insured Person caused by his suicide or attempted suicide or

intentional self-injury or own criminal or felonious act or by his own act whilst in a state of insanity or intoxication;

(c) for bodily injury to any Insured Person caused by disease or natural causes, or medical or

surgical treatment (except where such treatment is rendered necessary by bodily injury caused by Accident within the scope of this Endorsement);

5. ADDITIONAL CONDITIONS (a) The Insured shall furnish, as soon as practicable after each request from the Insurers,

reasonably obtainable information pertaining to bodily injury sustained by an Insured Person. In the event of death immediate notice must be sent to the Insurers.

(b) In consideration of any settlement under the provisions of this Endorsement and as a

condition precedent thereto, the Insurers shall be provided with a full legal release for all claims for damages against the Insured and/or any other party(ies) protected by this Policy from the Insured Person and/or any person having a cause of action for such bodily injury. If the injured Insured Person or any person claiming by, through or under him shall fail to accept in writing within thirty (30) days from the date of offering the voluntary settlement under the provisions of this Endorsement or to execute the necessary release then Insurers may, at their option, withdraw the offered voluntary settlement, without notice, in which circumstances the Insurers will no longer be bound by the undertakings expressed in the preceding paragraphs. If subsequent to an offer of voluntary settlement being made in respect of any Insured Person any claim suit or demand is made or prosecuted against the Insured for damages on account of such bodily injury, such claim suit or demand shall be considered as refusal to accept such voluntary settlement and the obligations of the Insurers as expressed in Section III, Legal Liability to Passengers, of the London Aircraft Insurance Policy, AVN1C to which this Endorsement is attached, shall be available as fully and completely as if this Endorsement had not been issued.

Limits of Settlement

Sum Insured USD XXXXX each person. The percentages specified below are % of the above Sum Insured.

1. Death 100%

2. Total and irrecoverable loss of sight of both eyes 100%

3. Total and irrecoverable loss of sight of one eye 100%

4. Loss of two limbs 100%

5. Loss of one limb 100%

6. Total and irrecoverable loss of sight of one eye and loss of one limb

100%

7. Permanent Total Disablement (other than total and irrecoverable loss of sight of one or both eyes or loss of limb(s))

100%

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Endorsement is subject to the terms, exclusions, conditions and limitations of the Policy to which it is

attached.

AVN 34A (Amended)

DATE RECOGNITION EXCLUSION CLAUSE

This Policy 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 Insurers to investigate or defend claims shall not apply to any claims so excluded.

AVN 2000A

NUCLEAR RISKS EXCLUSION CLAUSE AVN 38B

(1) 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 naturedirectly 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) the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;

(c) ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

(2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1)(b) and (c) above shall not include:

(i) depleted uranium and natural uranium in any form;

(ii) radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose.

(3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which:

(i) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or

(ii) any person or organisation is required to maintain financial protection pursuant to legislation in any country; or

(iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.

(4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:

(i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization “Technical Instructions for the Safe Transport of Dangerous Goods by Air”, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;

(ii) this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof;

(iii) in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter Maximum permissible level

(IAEA Health and Safety Regulations) of non-fixed radioactive surface contamination

(Averaged over 300cm2

) Beta, gamma and low toxicity alpha emitters

Not exceeding 4 Becquerels/cm2

(10 -4

microcuries/cm2

) All other emitters Not exceeding 0.4 Becquerels/cm

2

(10 -5

microcuries/cm2

)

(iv) the cover afforded hereby may be cancelled at any time by the Insurers giving

seven days‟ notice of cancellation.

Contracts (Rights of Third Parties) Act 1999 Exclusion Clause

The rights of a person who is not a party to this insurance or reinsurance to enforce a term of this

insurance or reinsurance and/or not to have this insurance or reinsurance rescinded, varied or altered without his consent by virtue of the provisions of the Contracts (Rights of Third Parties) Act 1999 are excluded from this insurance or reinsurance.

AVN 72

SANCTIONS AND EMBARGO CLAUSE

Notwithstanding anything to the contrary in the Policy the following shall apply:

1. If, by virtue of any law or regulation which is applicable to an Insurer at the inception of this Policy or becomes applicable at any time thereafter, providing coverage to the Insured is or would be unlawful because it breaches an embargo or sanction, that Insurer shall provide no coverage and have no liability whatsoever nor provide any defence to the Insured or make any payment of defence costs or provide any form of security on behalf of the Insured, to the extent that it would be in breach of such law or regulation.

2. In circumstances where it is lawful for an Insurer to provide coverage under the Policy, but the payment of a valid and otherwise collectable claim may breach an embargo or sanction, then the Insurer will take all reasonable measures to obtain the necessary authorisation to make such payment.

3. In the event of any law or regulation becoming applicable during the Policy period which will restrict the ability of an Insurer to provide coverage as specified in paragraph 1, then both the Insured and the Insurer shall have the right to cancel its participation on this Policy in accordance with the laws and regulations applicable to the Policy provided that in respect of cancellation by the Insurer a minimum of 30 days notice in writing be given. In the event of cancellation by either the Insured or the Insurer, the Insurer shall retain the pro rata proportion of the premium for the period that the Policy has been in force. However, in the event that the incurred claims at the effective date of cancellation exceed the earned or pro rata premium (as applicable) due to the Insurer, and in the absence of a more specific provision in the Policy relating to the return of premium, any return premium shall be subject to mutual agreement. Notice of cancellation by the Insurer shall be effective even though the Insurer makes no payment or tender of return premium.

AVN 111 01.10.10 PREMIUM PAYMENT CLAUSE (Amended)

1) It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments:

2) 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.

3) Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the

Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by

the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers.

Appointed Broker: Willis Limited

AVN6A

AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT

It is noted that the Contract Party(ies) have an interest in respect of the Equipment under the Contract(s). Accordingly, with respect to losses occurring during the period from the Effective Date until the expiry of the Insurance or until the expiry or agreed termination of the Contract(s) or until the obligations under the Contract(s) are terminated by any action of the Insured or the Contract Party(ies), whichever shall first occur, in respect of the said interest of the Contract Party(ies) and in consideration of the Additional Premium it is confirmed that the Insurance afforded by the Policy is in full force and effect and it is further agreed that the following provisions are specifically endorsed to the Policy:-

1. Under the Hull and Aircraft Spares Insurances

1.1 In respect of any claim on Equipment that becomes payable on the basis of a Total Loss, settlement (net of any relevant Policy Deductible) shall be made to, or to the order of the Contract Party(ies). In respect of any other claim, settlement (net of any relevant Policy Deductible) shall be made with such party(ies) as may be necessary to repair the Equipment unless otherwise agreed after consultation between the Insurers and the Insured and, where necessary under the terms of the Contract(s), the Contract Party(ies).

Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

1.2 Insurers shall be entitled to the benefit of salvage in respect of any property for which a claims settlement has been made.

2. Under the Legal Liability Insurance

2.1 Subject to the provisions of this Endorsement, the Insurance shall operate in all respects as if a separate Policy had been issued covering each party insured hereunder, but this provision shall not operate to include any claim howsoever arising in respect of loss or damage to the Equipment insured under the Hull or Spares Insurance of the Insured. Notwithstanding the foregoing the total liability of Insurers in respect of any and all Insureds shall not exceed the limits of liability stated in the Policy.

2.2 The Insurance provided hereunder shall be primary and without right of contribution from any other insurance which may be available to the Contract Party(ies).

2.3 This Endorsement does not provide coverage for the Contract Party(ies) with respect to claims arising out of their legal liability as manufacturer, repairer, or servicing agent of the Equipment.

3. Under ALL Insurances

3.1 The Contract Party(ies) are included as Additional Insured(s).

3.2 The cover afforded to each Contract Party by the Policy in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission.

3.3 The provisions of this Endorsement apply to the Contract Party(ies) solely in their capacity as financier(s)/lessor(s) in the identified Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement.

3.4 The Contract Party(ies) shall have no responsibility for premium and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies) except in respect of outstanding premium in respect of the Equipment.

3.5 Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to

the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights.

3.6 Except in respect of any provisions for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT, however, be given at normal expiry date of the Policy or any endorsement.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:-

1. THE CONTRACT PARTY(IES) ARE COVERED BY THE POLICY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

2. THE POLICY SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE POLICY.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Equipment:

2. Policy Deductible applicable to physical damage to the Equipment:

3. (a) Contract Party(ies):

AND (b), in addition, in respect of Legal Liability Insurances:

4. Contract(s):

5. Effective Date:

6. Additional Premium:

7. Appointed Broker:

AVN 67B 28.9.94

ADDITIONS AND DELETIONS

(Combined)

1. The insurance afforded by this Policy is automatically extended to include at pro rata additional

premium further Aircraft added during the currency of this Policy provided such Aircraft are owned

or operated by the Insured and are of the same type and value as Aircraft already covered

hereunder and of no greater seating capacity.

2. The inclusion of additional Aircraft of other types or different values or greater seating capacity

shall be subject to special agreement and rating by Insurers prior to attachment-.'

3. Under the Aircraft loss or physical damage Section of this Policy Aircraft which have been sold or

disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of

premium provided no claim has arisen and become payable in respect of such Aircraft under the

Aircraft loss or physical damage Section of this Policy and that this Policy is not cancelled by

virtue of such deletion.

4. Under the liability Section(s) of this Policy Aircraft which have been sold or disposed of shall be

deleted from this Policy and the Insured shall be entitled to pro rata return of premium

5. Provided always that

(i) Notwithstanding the foregoing provisions for additions and deletions the premium in respect

of each separate period of Flight risk insurance on any Aircraft covered during the

currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on<a

total loss basis the full twelve months' Aircraft loss or physical damage premium shall be

paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1, 3

and 4 respectively shall be given to the Insurers or their representatives in writing within

ten days of attachment or deletion.

AVN 19A 18.3.02

DATE RECOGNITION LIMITED COVERAGE CLAUSE

WHEREAS the Policy of which this Endorsement forms part includes the Date Recognition Exclusion

Clause (Clause AVN 2000A), it is hereby understood and agreed that, subject to all terms and

provisions of this Endorsement, Clause AVN 2000A shall not apply:

(1) to any accidental loss of or damage to an aircraft defined in the Policy Schedule (“Insured

Aircraft”);

(2) to any sums which the Insured shall become legally liable to pay, and (if so required by the

Policy) shall pay including costs awarded against the Insured) in respect of:

(a) accidental bodily injury, fatal or otherwise, to passengers caused by an accident to an

Insured Aircraft; and/or

(b) loss of or damage to baggage and personal articles of passengers, mail and cargo

caused by an accident to an Insured Aircraft; and/or

(c) accidental bodily injury, fatal or otherwise, and accidental damage to property caused

by an Insured Aircraft or by any person or object falling therefrom.

PROVIDED THAT:

1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions,

limitations, warranties, exclusions and cancellation provisions of the Policy (except as specifically

provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by

the Policy.

2. Nothing in this Endorsement shall provide any coverage:

(a) in respect of grounding of any aircraft; and/or

(b) in respect of loss of use of any property unless it arises out of physical damage to or

destruction of property in the accident giving rise to a claim under the Policy.

3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the

Policy period any material facts relating to the Date Recognition Conformity of the Insured‟s

operations, equipment and products.

AVN 2001A 21.3.01

AGREED VALUE CLAUSE

It is hereby understood and agreed that in consideration of the insured Aircraft being covered on an

Agreed Value basis all reference herein to replacement shall be deemed to be deleted but only in

respect of claims adjusted on the basis of a total loss.

In respect of claims adjusted on the basis of a total loss Insurers shall pay to the Insured the

Agreed Value of the Aircraft as stated in the Policy Schedule less any applicable deductible.

Insurers may, at their discretion, take the salvage of such Aircraft, together with all appropriate

documents appertaining thereto, but in no event shall there be any abandonment to Insurers.

The foregoing provision shall not apply to claims arising in respect of partial loss or damage where

Insurers shall retain the right to repair, replace or make good as they deem expedient.

AVN 61 1.10.96

FLYING CLOTHING AND EFFECTS CLAUSE

This Policy is extended to cover the Insured or any pilot described in the Schedule of the Policy

against loss or damage by theft or fire (or accidental damage if the Aircraft itself be damaged) in

respect of flying clothing, maps, navigating equipment and instruments, headsets or similar equipment

(not being fixtures in the Aircraft) and baggage (including contents) actually in or on the Aircraft being

the property of the Insured or any pilot described in the Schedule of the Policy, but excluding money,

credit cards, securities, jewellery and furs of all kinds. This extension is limited to a maximum

indemnity of __As Agreed____ each Accident. Subject to a deductible of __As Agreed____ each

Accident.

AVN 75 09.02.01

SUPPLEMENTARY PAYMENTS CLAUSE

It is understood and agreed that this Policy is extended to cover as more fully set forth under those

paragraph(s) identified below. It is expressly understood that no cover is provided under those

paragraphs of this Clause, which have not been identified below.

The Insurers agree to indemnify the Insured for

a. any reasonable expenses incurred for the purpose of search and rescue operations for an

Aircraft insured hereunder determined to be missing and unreported after the computed

maximum endurance of the flight has been exceeded;

b. any reasonable expenses incurred for the purpose of runway foaming to prevent or mitigate

possible loss or damage because of malfunction or suspected malfunction of an Aircraft

insured hereunder;

c. any reasonable expenses incurred for the purpose of attempted or actual raising, removal,

disposal or destruction of the wreck of an Aircraft insured hereunder and the contents thereof;

d. any reasonable expenses which the Insured may be called upon to pay in respect of any

public inquiry or inquiry by the Civil Aviation Authority or any other relevant authority into an

Accident involving an Aircraft insured hereunder.

Coverage is provided under paragraphs _______________ above.

Provided always that Insurers' liability shall not exceed ___________________ in the aggregate over

all paragraphs insured.

AVN 76 09.02.01

UNAUTHORIZED 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 such use was not

authorized by the Insured and that the Insured had taken reasonable precautions to prevent such

unauthorized use. Any consent given by an employee or agent of the Insured outside the normal

scope of his authority shall be deemed not to be authorization given by the Insured.

AVN 77 09.02.01

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.

AVN 78 09.02.01

ASBESTOS EXCLUSION CLAUSE

This Policy does not cover any claims of any kind whatsoever directly or indirectly relating to, arising out of

or in consequence of:

(1) the actual, alleged or threatened presence of or exposure to asbestos in any form

whatsoever, or

(2) any obligation, request, demand, order, or statutory or regulatory requirement that any

Insured or others test for, monitor, clean up, remove, contain, treat, neutralize, protect

against, indemnify for any costs or damages relating to or in any other way respond to the

actual, alleged or threatened presence of asbestos in any form whatsoever.

Notwithstanding any other provisions of this Policy, Insurers will have no duty to investigate, defend or pay

defence costs in respect of any claim excluded in whole or in part under paragraphs (1) or (2) hereof.

All other terms and conditions of the Policy remain unchanged.

AVN 96 17.3.04

NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE

1. This Policy does not cover 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.

or a recorded in-flight emergency causing abnormal aircraft operation.

2. With respect to any provision in the Policy concerning any duty of Insurers to investigate or

defend claims, such provision shall not apply and Insurers shall not be required to defend

(a) claims excluded by Paragraph 1 or

(b) a claim or claims covered by the Policy when combined with any claims excluded by

Paragraph 1 (referred to below as "Combined Claims").

3. In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the

Policy) reimburse the Insured for that portion of the following items which may be allocated to

the claims covered by the Policy:

(i) damages awarded against the Insured and

(ii) defence fees and expenses incurred by the Insured.

Nothing herein shall override any radioactive contamination or other exclusion clause attached to or

forming part of this Policy.

AVN 46B

PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT

1. In consideration of an additional premium of $____, it is agreed that the Insurers will at the request

of and regardless of legal liability of the Named Insured offer settlement on the basis of the benefits

hereinafter set forth in respect of bodily injury Accidentally sustained by any passenger provided that

at the time of such Accident causing such bodily injury the Passenger Bodily Injury Liability of the

Policy is effective in respect of such Accident.

2. LIMITS OF SETTLEMENT

For death or for total loss of two limbs or total loss of sight of two eyes or total loss of one limb

and total loss of sight of one eye (or any combination thereof) the amount offered shall not exceed the

amount expressed as the limit of settlement for "each passenger" shown below; or

For total loss of one limb or total loss of sight of one eye the amount offered shall not exceed one

half of the amount expressed as the limit of settlement for "each passenger" shown below; or

For permanent total disablement other than by loss of limbs or sight the amount offered shall not

exceed the amount expressed as the limit of settlement for "each passenger" shown below; or

Subject to the limit for "each passenger" the total of the amounts which the Insurers shall offer on

account of bodily injury sustained by two or more passengers in any one Accident shall not exceed the

amount expressed as the limit of settlement for "each Accident" shown below; or

.

3. DEFINITIONS

"ACCIDENT" means any one accident or series of accidents arising out of one event.

"LOSS OF A LIMB" means loss by physical separation of a hand at or above the wrist or of a foot

at or above the; ankle.

"TOTAL LOSS OF SIGHT" means loss of sight which is certified as being entire and irrecoverable

by a licensed physician specializing in ophthalmology.

"PERMANENT TOTAL DISABLEMENT" means disablement which has for twelve months from

the date of the Accident necessarily and continuously disabled the passenger from attending to

business or occupation of any and every kind or if he has no business or occupation confined him

immediately and continuously to the house and prevented him from attending to any of his usual duties

(if any) and at the expiry of that twelve months period being beyond hope of improvement.

4. ADDITIONAL EXCLUSIONS

The Insurers shall not be liable under the terms of this Endorsement

(a) for any payment which may be used to satisfy that obligation for which the Insured or any

Company as his insurer may be held liable under workers compensation, employers liability,

unemployment compensation or disability benefits law or any similar law;

(b) for bodily injury to any passenger caused by his suicide or attempted suicide or intentional

self-injury or own criminal or felonious act or by his own act whilst in a state of insanity or

intoxication;

(c) for bodily injury to any passenger caused by disease or natural causes, or medical or surgical

treatment (except where such treatment is rendered necessary by bodily injury caused by

Accident within the scope of this Endorsement);

(d) for bodily injury to any passenger carried for hire or reward;

(e) or bodily injury to any member of the flight or cabin crew.

5. ADDITIONAL CONDITIONS

(a) The Insured shall furnish, as soon as practicable after each request from the Insurers, reasonably

obtainable information pertaining to bodily injury sustained by passengers. In the event of death

immediate notice must be sent to the Insurers.

(b) In consideration of any settlement under the provisions of this Endorsement and as a condition

precedent thereto, the Insurers shall be provided with a full legal release for all claims for damages

against the Insured and/or any other party(ies) protected by this Policy from the injured passenger

and/or any person having a cause of action for such bodily injury. If the injured passenger or any

person claiming by, through or under him shall fail to accept in writing within thirty (30) days from

the date of offering the voluntary settlement under the provisions of this Endorsement or to execute

the necessary release then the Insurers may, at their option, withdraw the offered voluntary

settlement, without notice, in which circumstances the Insurers will no longer be bound by the

undertakings expressed in the preceding paragraphs. If subsequent to an offer of voluntary

settlement being made in respect of any passenger any claim suit or demand is made or

prosecuted against the Insured for damages on account of such bodily injury, such claim suit or

demand shall be considered as refusal to accept such voluntary settlement and the obligations of

the Insurers as expressed in the Passenger Liability Section of the Policy to which this

Endorsement is attached, shall be available as fully and completely as if this Endorsement had not

been issued.


Each passenger Each Accident

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this

Endorsement is subject to the terms, exclusions, conditions and limitations of the Policy to which it is

attached.

The Schedule

Description of Aircraft

F.A.A. Reg. No.

Make, Model and Type* Declared Maximum number

of Passengers to be carried

at any one time

* Landplane, Seaplane, Skiplane, Amphibian or Rotorcraft


Each Passenger Each Accident

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this

Endorsement is subject to the terms, exclusions, conditions and limitations of the Policy to which it is

attached.

PERSONAL INJURY EXTENSION

The insurance provided by this policy extends to indemnify the insured for legal liability for damages

awarded to any person arising out of one or more of the following offences committed during the policy

period but only where such offences are committed in connection with that part of the insured‟s

aviation operations or interests for which other coverage is granted by the policy:-

1. false arrest, restraint, detention or imprisonment.

2. malicious prosecution.

3. wrongful entry, eviction or other invasion of the right of private occupancy.

4. inadvertent discrimination with respect to withholding or refusal of transportation except with

respect to overbooking.

5. the publication or utterance of a libel or slander or of other defamatory or disparaging material in

violation of an individual's right of privacy except publication or utterance in the course of or

related to advertising, broadcasting or telecasting activities conducted by or on behalf of the

named insured.

6. incidental medical malpractice error or mistake by a physician, surgeon, nurse, medical

technician or other person performing medical services but only for or on behalf of the insured in

the provision of emergency medical relief.

The following additional exclusions shall apply to the insurance provided by this extension:-

(a) liability assumed by the named insured under any contract or agreement

(b) personal injury arising out of the wilful violation of penal statute or ordinance committed by or

with the knowledge or consent of the named insured

(c) personal injury arising out of offence 5 above

(i) if the first injurious publication or utterance of the same or similar material was made prior

to the effective date of this insurance

(ii) if such publication or utterance was made by or at the direction of the insured with the

knowledge of the false nature thereof

(d) liability for personal injury sustained by any person directly or indirectly related to the past,

present or potential employment of such person by the insured.

The limit of liability applicable to this extension shall be ................................... in the aggregate during

the policy period being within the overall policy limit and not in addition thereto.

All other terms and conditions of this policy remain unchanged.

AVN 60А

LIABILITY TO PILOTS AND CREW CLAUSE

It is understood and agreed that notwithstanding any exclusion specifically relating to pilots and

operational crew in the Section of this Policy covering the liability of the Insured to passengers, such

coverage shall extend to include the liability of the Insured to the pilots and operational crew of the

insured Aircraft, but excluding liability required to be insured under the terms of any employers' liability

or workman's compensation legislation or any similar legislation.

AVN 73 09.02.01

PILOT INDEMNITY CLAUSE

The Sections of this Policy covering bodily injury liability, including to passengers, and property

damage liability are extended to cover, as if he/she were the Insured, any pilot authorized by the

Insured under the terms of the Policy in respect of injury or damage arising out of the operation of the

Aircraft described in the Schedule to the Policy, but not so as to increase the liability of Insurers

beyond the amount which would otherwise have been payable under this Policy had liability been

incurred by the Insured.

Provided always that

1. At the time of any accident giving rise to a claim under this Clause the said pilot

(a) shall as though he/she were the Insured, observe, fulfil and be subject to the terms,

conditions and exclusions contained in the Policy, and

(b) is not entitled to indemnity under any other policy.

2. There shall be no indemnity under this Clause in respect of claims made against the pilot by the

Insured and/or with respect to the Aircraft described in the Schedule to the Policy.

AVN 74 09.02.01

MEDICAL AND RELATED EXPENSES INCLUSION CLAUSE

It is understood and agreed that this Policy is extended to pay all reasonable expenses incurred within

one year from the date of accident for necessary medical, surgical, ambulance, hospital, professional

nursing, repatriation and funeral expenses to or for each person who sustains bodily injury, sickness or

disease, caused by accident whilst in, entering or alighting from the Aircraft if the Aircraft is being used

by the Insured or with his permission.

As soon as practicable, the injured person or someone on his behalf shall give to the Insurers or any of

their representatives written proof of claim, under oath if required, and shall, after each request from

the Insurers, execute authorisation to enable the Insurers to obtain medical reports and copies of

records. The injured person shall submit to physical examination by physicians selected by the

Insurers when and as often as the Insurers may reasonably require. The insurance afforded by this

coverage shall be subject to a Policy limit of ____________ and shall be excess insurance over any

other valid and collectible insurance applicable thereto.

The coverage afforded by this Clause extends to the pilot(s) and operational crew of the Aircraft.

does not extend *

*Delete as appropriate. AVN 80 09.02.01

CIVIL USE OF MOD AIRFIELDS ENDORSEMENT

It is noted that the Insured(s) may wish to use, for civil aircraft purposes, Ministry of Defence (MOD)

airfields and be required to enter into an agreement with the Crown incorporating certain conditions for

the civil (flying) use of such airfields and to afford an indemnity to the Crown in the form of

INDEM3.81/Form4a.

The Insurers will indemnify the Insured for all sums which the Insured shall become legally liable to

pay and shall pay to the Crown under such an agreement 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 any Aircraft insured under the Policy or by any person or object falling

therefrom.

The limit applicable to this Endorsement is GBP……….. any one Accident and such limit shall not be in

addition to nor in excess of any other limit of liability provided in the Policy.

Additional Premium: ………………………………………………….

Unless the Policy otherwise provides, the following exclusions shall apply:

(a) Nuclear Risks Exclusion Clause AVN 38B;

(b) War, Hi-jacking and Other Perils Exclusion Clause (Aviation) AVN 48B;

(c) Noise and Pollution and Other Perils Exclusion Clause AVN 46B;

(d) Contracts (Rights of Third Parties) Act 1999 Exclusion Clause AVN 72; and

(e) Date Recognition Exclusion Clause AVN 2000A.

If Insurers are called upon to provide coverage to the Insured in compliance with INDEM3.81/Form4a

including the defence and legal costs associated therewith and if by reason of the terms conditions

limitations and exclusions of the Policy such coverage would not have been provided except for this

Endorsement then the Insured will reimburse Insurers for such payments made in providing coverage

under INDEM3.81/Form4a.

Nothing in this Endorsement shall restrict the coverages otherwise provided under the Policy.

AVN 95 30.4.02

CARGO LEGAL LIABILITY ENDORSEMENT

This Endorsement extends the coverage provided under Section .................. of this Policy, subject to

the Limit of Indemnity and to the Deductible stated below, for legal liability in respect of accidental

physical loss of or damage to cargo, whilst in the care, custody or control of the Insured, for the

purpose of carriage by air.


1. Before accepting any cargo for the purpose of carriage by air the Insured shall take such

measures (including but not limited to the issue or acceptance of an air waybill) as are necessary to

exclude or limit liability for claims in respect of the accidental physical loss of or damage to that cargo

to the extent permitted by law. In no event shall the amount of the indemnity provided by Insurers

under this Endorsement exceed the amount of the legal liability, if any, that would have existed had the

Insured taken such measures.

2. The Insured shall ensure that cargo in their care, custody or control is kept in secure premises at

all times other than during transit.

Coverage provided by this Endorsement attaches from the time of acceptance of such cargo by the

Insured and ceases upon delivery by the Insured at the final destination or when handed over to a

successive carrier.

This Endorsement does not apply to legal liability in respect of:

1. delay or loss of market;

2. perishables and/or livestock; :

3. consequential loss howsoever arising;

4. slung loads;

5. money, securities, precious stones, precious metals, jewellery, fine art and antiques of any kind.

LIMIT OF INDEMNITY

………………………………………………………………………………….

DEDUCTIBLE

………………………………………………………………………………….. AVN 92

GROUND HANDLING/SERVICING AGREEMENTS It is hereby noted and agreed to waive rights of subrogation against and hold harmless companies or other entities with whom the Insured has entered into agreements in respect of ground handling or servicing in accordance with usual operating practice. LSW704

CIVIL AVIATION AUTHORITY TRAINEE ENDORSEMENT It is noted and agreed that this Policy is extended to indemnify the Insured in respect of Liability assumed under agreement with the Civil Aviation Authority (or its local equivalent) in connection with the flying training by the Insured of employees of the Civil Aviation Authority (or its local equivalent) and the Passenger Legal Liability section is extended to include Civil Aviation Authority (or its local equivalent) employees whilst acting as crew members. 07/94 LSW707A

TWO WAY CROSS LIABILITY CLAUSE It is agreed that the inclusion of more than one Insured in the Policy shall not affect the rights of any Insured as respects any claim or suit by any other Insured, or by any employee of such other Insured. The Policy shall insure each Insured in the same manner as though a separate policy had been issued to each and the Underwriters hereby agree to waive all rights of subrogation which they may have or acquire against any party insured hereon arising out of an accident or occurrence in respect of which any claim is made hereunder. PROVIDED NEVERTHELESS that nothing contained herein shall operate to increase the Underwriters liability as set forth elsewhere in the Policy beyond the amount or amounts for which the Underwriters would have been liable if only one Insured had been named. LSW 715

HI-JACK CLAUSE Subject otherwise to the terms and conditions of the policy it is hereby agreed the term "Accident" should bedeemed to include Hi-jack, or any attempt thereat, and exposure resulting therefrom. The cover referred to above shall continue whilst the {Response} is subject to the control of the personal or their associates making the Hi-jack and during travel direct to his domicile and/or original destination from period not exceeding twelve months from the date of the Hi-jack.

Definition Hi-jacking means unlawful seizure or wrongful exercise of control an aircraft or conveyance, or the crew thereof, in which the {Response} is travelling as a passenger. 17/12/70 NMA1732

INNOCENT OPERATORS COVERAGE CLAUSE

This Policy is extended to cover physical damage to the Aircraft hereby insured arising from the

action of any Government, Government Department, Authority or Agency by reason of actual or

alleged infringement of Customs, Quarantine or Public Health regulations.

Warranted the Insured shall

(a) not knowingly carry cargo incorrectly described or labeled;

(b) take reasonable precautions to adhere to any Customs, Quarantine or Public Health regulations. AVN 89

DATE RECOGNITION LIMITED COVERAGE CLAUSE

WHEREAS the Policy of which this Endorsement forms part includes the Date Recognition

Exclusion Clause (Clause AVN 2000A), it is hereby understood and agreed that, subject to all terms

and provisions of this Endorsement, Clause AVN 2000A shall not apply to any sums which the

Insured shall become legally liable to pay, and (if so required by the Policy) shall pay (including

costs awarded against the Insured) in respect of:

(1) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an

aircraft accident occurring during the Policy period and arising out of a risk insured under the

Policy; and/or

(2) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an

accident, other than an aircraft accident, occurring during the Policy period and arising out of

a risk insured under the Policy. For the avoidance of doubt, solely for the purposes of this

paragraph (2) and without prejudice to the meaning of the words in any other context, “bodily

injury” shall mean only physical corporeal injury and unless arising directly therefrom shall not

include mental or psychological injury.

PROVIDED THAT:

1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions,

limitations, warranties, exclusions and cancellation provisions of the Policy (except as

specifically provided herein), and nothing in this Endorsement extends coverage beyond that

which is provided by the Policy.

2. Nothing in this Endorsement shall provide any coverage:

(a) applying in excess of any scheduled underlying insurance and/or in respect of any

non aviation risks; and/or

(b) in respect of grounding of any aircraft; and/or

(c) in respect of loss of use of any property unless it arises out of physical damage to or

destruction of property in the accident giving rise to a claim under the Policy.

3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the

Policy period any material facts relating to the Date Recognition Conformity of the Insured‟s

operations, equipment and products.

AVN 2002A

Aircraft Spares Wording LPO344C 1. INTENTION Subject to the terms, conditions and exclusions hereinafter contained this Policy insures Property being only Engines, Spare Parts and Equipment destined to be fitted to or to form part of an aircraft and being the property of the Assured or the property of others for which the Assured is responsible, while such property is in the care, custody or control of the Assured on the ground, or is being carried as cargo in transit, by air (including Assured's aircraft) and/or steamers (approved or held covered at a premium to be arranged) and/or road and/or rail and/or conveyance. 2. CONDITIONS All risks of Physical Loss or Damage (except as hereafter excluded) but Air Transits Institute Cargo Clauses (AIR) 1/1/82 Marine Transits Institute Cargo Clauses (A) 1/1/82 3. GEOGRAPHICAL LIMITS This Policy to cover the property described above, against the risks described above, whilst {Response} 4. EXCLUSIONS This Policy does not insure:- (a) Loss of or damage to any such property occurring at any time after the commencement of the

operation of fitting it to or placing it on board the aircraft to which it is destined. (b) Loss of or damage to an Engine occurring during the running or testing thereof. (c) Mechanical or electrical derangement. (d) Loss or damage caused by wear, tear or gradual deterioration. (e) Loss or damage caused by or resulting from neglect of the Assured to use reasonable means to

save and preserve the property at the time of and after any loss or damage. (f) Loss of or damage to any property which has been detached from an aircraft and which is

intended to be refitted to the aircraft and not to be replaced by other property. (g) Loss of or damage to any property hereby insured which may be sustained whilst the same is

under any process and directly resulting therefrom. (h) Property carried in an aircraft as a spare parts kit. (i) Property fitted to or forming part of an aircraft. (j) The property of others carried or stored by the Assured for hire or reward. (k) Mysterious disappearance or unexplained loss or shortage disclosed upon taking inventory. 5. This Policy is subject to the Nuclear Risks Exclusion Clause AVN71. 6. This Policy does not cover 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) Hi-jacking or any unlawful seizure or wrongful exercise of control of an 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 consent of the Assured.

(h) An aircraft being outside the control of the Assured by reason of a peril excluded by paragraphs (f) or (g). 7. DEDUCTIBLE CLAUSE Each claim for loss or damage arising out of one event shall be adjusted separately and from the amount of such adjusted claim the sum of {Response} shall be deducted but claims for loss or damage caused by fire, wind, tornado and cyclone shall be paid in full. 8. LIMITS OF LIABILITY The liability of the Underwriters shall not exceed:- 1. {Response} any one building and/or location

2. {Response} any one sending 3. The cost of repair or the cost of replacement or the insured value, whichever shall be the least

amount, in respect of any one item of property. 9. REPORTING AND PREMIUM ADJUSTMENT CLAUSE The premium of {Response} is a minimum and deposit premium to be adjusted at expiry as follows:- (a) Within one month after the expiration date the Assured shall furnish to Underwriters a statement

showing the total values at risk over all locations at the last day of each policy month such amounts shall be totaled then divided by the number of policy months and premium will be payable on the resulting amount at a rate of {Response}.

(b) If this Policy is cancelled prior to expiration, the Assured is required to report total monthly values at risk for each completed policy month prior to the date of cancellation and premium payable hereunder shall be calculated on such reported values in the manner and at the rate hereinbefore provided. It is a condition of this insurance that the Assured shall keep a proper record of all items of property from time to time hereby insured and of the value of each item.

10. SALVAGE AND RECOVERIES CLAUSE All salvages, recoveries and payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to the said settlement and all necessary adjustments shall be made by the parties thereto. 11. LOSS CLAUSE Any loss hereunder shall not reduce the amount of this Policy. 12. CANCELLATION CLAUSE This Policy shall be cancelled either by the Assured or by Underwriters by mailing to the other at the address shown in the Policy, written notice stating when not less than {Response} days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Assured or by Underwriters shall be equivalent to mailing. The Assured agrees, in the event of cancellation, to report the values at risk and to pay premium thereon to Underwriters as provided by "Reporting and Premium Adjustment Clause" up to the date of cancellation.

AVIATION HULL ‘‘WAR AND ALLIED PERILS’’ POLICY

SECTION ONE: LOSS OF OR DAMAGE TO AIRCRAFT

Subject to the terms, conditions and limitations set out below, this Policy covers loss of or damage to the Aircraft stated in the Schedule against claims excluded from the Assured‟s Hull „„All Risks‟‟ Policy 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 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 Assured. For the purpose of this paragraph (f) only, an aircraft is considered to be in flight at any time from the moment when all its external doors are closed following embarkation until the moment when any such door is opened for disembarkation or when the aircraft is in motion. A rotor-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.

Furthermore this Policy covers claims excluded from the Hull „„All Risks‟‟ Policy from occurrences whilst the Aircraft is outside the control of the Assured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Assured on the safe return of the Aircraft to the Assured at an airfield not excluded by the geographical limits of this 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).

SECTION TWO: KIDNAP, RANSOM, EXTORTION AND HI-JACK EXPENSES

1. This Policy will also indemnify the Assured subject to the terms, conditions, exclusions and limitations set out below, and up to the limit stated in the Schedule, for any payment properly made in respect of:

(a) threats against any Aircraft stated in the Schedule or its passengers or crew, including kidnap, ransom and extortion made during the currency of this Policy.

(b) extra expenses necessarily incurred following confiscation, etcetera (as Section One clause (e)) or hi-jacking, etcetera (as Section One clause (f)) of any Aircraft stated in the Schedule.

2. No cover will be provided under this Section of the Policy in any territory where such insurance is not lawful, and the Assured is at all times responsible for ensuring that no arrangements of any kind are made which are not permitted by the proper authorities.

SECTION THREE: GENERAL EXCLUSIONS

This Policy excludes loss, damage or expense caused by one or any combinations 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) confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the authority of the Government(s) stated in the Schedule, or any public or local authority under its jurisdiction;

(c) the emission, discharge, release or escape of any chemical, biological or biochemical materials or the threat of same but this exclusion shall not apply;

(i) if such materials are used or threatened to be used solely and directly in:

1. the Hi-jacking, unlawful seizure or wrongful exercise of control of an Aircraft in flight and then only in respect of loss of or damage to such Aircraft the subject of a valid claim under clause (f) Section One above; or

2. any threat against an Aircraft stated in the Schedule or its passengers or crew and then only in respect of payments as are insured under Section Two above;

(ii) other than as provided for in sub-paragraph 1 above, to loss of or damage to an Aircraft if the use of such materials is hostile and originates solely and directly;

1. on board such Aircraft, whether it is on the ground or in the air.

or

2. external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft‟s wheels are not in contact with the ground.

Any emission, discharge, release or escape originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Policy.

(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 Assured protected under this Policy may be party;

(f) delay, loss of use, or except as specifically provided in Section Two any other consequential loss; whether following upon loss of or damage to the Aircraft or otherwise.

(g) any use, hostile or otherwise, of radioactive contamination or matter but this exclusion shall not apply to loss of or damage to an Aircraft if such use is hostile and originates solely and directly;

(i) on board such Aircraft, whether it is on the ground or in the air, or

(ii) external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft‟s wheels are no longer in contact with the ground

Any such use originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Policy.

(h) any use, hostile or otherwise, of an electromagnetic pulse but this exclusion shall not apply to loss of or damage to an Aircraft if such use originates solely and directly on board such Aircraft, whether it is on the ground or in the air.

(i) any detonation, hostile or otherwise, of any device employing atomic or nuclear fission and/or fusion or other like reaction, and notwithstanding (g) and (h) above, any radioactive contamination and electromagnetic pulse resulting directly from such detonation is also excluded by this Policy.

SECTION FOUR: GENERAL CONDITIONS

1. This Policy is subject to the same warranties, terms and conditions (except as regards the premium, the obligations to investigate and defend, the renewal agreement (if any), the amount of deductible or self insurance provision where applicable AND EXCEPT AS OTHERWISE PROVIDED HEREIN) as are contained in or may be added to the Assured‟s Hull „„All Risks‟‟ Policy.

2. Should there be any Material Change in the nature or area of the Assured‟s operations, the Assured shall give immediate notice of such Change to the Underwriters; no claim arising subsequent to a Material Change over which the Assured had control shall be recoverable hereunder unless such change has been accepted by the Underwriters.

„„Material Change‟‟ shall be understood to mean any change in the operation of the Assured which might reasonably be regarded by the Underwriters as increasing their risk in degree or frequency, or reducing possibilities of recovery or subrogation.

3. The due observance and fulfilment of the terms, provisions, conditions and endorsements of this Policy shall be conditions precedent to any liability of the Underwriters to make any payment under this Policy: in particular the Assured 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 to obtain all permits necessary for the lawful operation of the Aircraft.

4. Subject always to the provisions of Section Five, 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 Rights of Subrogation.

SECTION FIVE: CANCELLATION REVISION AND AUTOMATIC TERMINATION

Amendment of 1.(a) Underwriters may give notice, effective on the expiry of 7 days from midnight G.M.T. on the day on which notice is issued, to review the rate of premium and/or the geographical limits.

In the event of the review of the rate of premium and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Policy shall become cancelled at that date.

Terms or Cancellation

Automatic Review of Terms or Cancellation

(b) Notwithstanding 1(a) above, this Policy is subject to automatic review by Underwriters of the rate of premium and/or conditions and/or geographical limits effective on the expiry of 7 days from the time of any hostile detonation of any device including 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 directly affected. In the event of the review of the rate of premium and/or conditions and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Policy shall become cancelled at that date.

Cancellation by Notice

(c) This Policy may be cancelled by the Assured or Underwriters giving notice not less than 7 days prior to the end of each period of 3 months from inception.

Automatic Termination

2.Whether or not such notice of cancellation has been given clause (a) of Section One of 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.

04/06 LSW555D (Amended)

ARIEL

AIRPORT OWNERS AND OPERATORS LIABILITY INSURANCE POLICY

The Insurers hereby agree to the extent and in the manner hereinafter provided, to pay on behalf of the Insured

all sums which the Insured shall become legally obligated to pay or by final judgement be adjudged to pay up

to but not exceeding the amounts specified in the Schedule, to any person or persons as damages

(a) for bodily injury including death at any time resulting therefrom (hereinafter referred to as bodily

injury) or

(b) for loss of or damage to property of others (hereinafter referred to as property damage)

caused by accident occurring during the period mentioned in the Schedule and arising out of the hazards

set forth in Sections 1, 2 and 3 below.

SECTION 1

Bodily injury or property damage

(a) in or about the premises specified in the Schedule, as a direct result of the services granted by the

Insured

(b) elsewhere in the course of any work or of the performance of any duties carried out by the Insured or his

employees in connection with the business or operations specified in the Schedule

caused by the fault or negligence of the Insured or any of his employees engaged in the Insured’s business

or by any defect in the Insured’s premises, ways, works, machinery or plant used in the Insured’s business.

THIS SECTION IS SUBJECT TO THE FOLLOWING EXCLUSIONS:

1. Loss of or damage to property owned, rented, leased or occupied by; whilst in the care, custody or

control of; whilst being handled, serviced or maintained by the Insured or any servant of the Insured but this

exclusion shall be deemed not to apply to vehicles that are not the property of the Insured whilst on the

premises specified in the Schedule.

2. Bodily injury or property damage caused by

(a) any mechanically propelled vehicle which the Insured may cause or permit any other person to

use on the road in such a manner as to render them responsible for insurance under any

domestic or international law appertaining to road traffic, or where no such law exists, whilst

such vehicle is on any public highway.

(b) any Ships, Vessels, Craft or Aircraft owned, chartered, used or operated by or on account of the

Insured, but this exclusion shall be deemed not to apply to aircraft owned by others which are

on the ground and for which indemnity is otherwise granted under Section 2 of this Policy,

whether such Section is insured hereunder or not.

3. Bodily injury or property damage arising out of any Airmeet, Air Race, or Air Show, nor any stand used for

the accommodation of spectators in connection therewith, unless previously agreed by Insurers.

4. Bodily injury or property damage arising out of construction of, demolition of or alterations to

Buildings, Runways, or Installations by the Insured or his contractors or sub-contractors (other than normal

maintenance operations) unless previously agreed by Insurers.

5. Bodily injury or property damage arising out of any goods or products manufactured, constructed,

altered, repaired, serviced, treated, sold, supplied, or distributed by the Insured or his employees after such

goods or products have ceased to be in the possession or under the control of the Insured, but this exclusion

shall be deemed not to apply to the supply, by the Insured, of food or drink at the premises specified in the

Schedule.

SECTION 2

Loss of or damage to Aircraft or Aircraft equipment, not owned, rented or leased by the Insured, whilst on the

ground in the care, custody or control of or whilst being serviced, handled or maintained by the Insured or any

servant of the Insured.


(a) Loss of or damage to robes, wearing apparel, personal effects or merchandise of any description.

(b) Loss of or damage to Aircraft or Aircraft equipment, hired or leased by or loaned to the Insured.

(c) Loss of or damage to any Aircraft while in flight as defined.

SECTION 3

Bodily injury or property damage arising out of the possession, use, consumption or handling of any goods or

products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the

Insured or his employees, but only in respect of such goods or products which form part of or are used in

conjunction with aircraft, and then only after such goods or products have ceased to be in the possession or

under the control of the Insured.


(a) Damage to the property of the Insured or to property within his care, custody or control.

(b) The cost of repairing or replacing any defective goods or products manufactured, constructed, altered,

repaired, serviced, treated, sold, supplied or distributed by the Insured or any defective part or parts thereof.

(c) Loss arising out of improper or inadequate performance, design or specification but this exclusion shall be

deemed not to apply to bodily injury or property damage as insured hereby resulting therefrom.

(d) Loss of use of any Aircraft not actually lost or damaged in an accident giving rise to a claim

hereunder.

EXCLUSIONS APPLICABLE TO ALL SECTIONS OF THIS POLICY

1. THIS POLICY DOES NOT COVER liability for bodily injury to any person, who at the time of

sustaining such injury is engaged in the service of the Insured or acting on his behalf, or liability for which

the Insured or his insurer may be held liable under any workmans compensation,

unemployment compensation or disability benefits law or any similar law.

2. THIS POLICY DOES NOT COVER the cost of making good any faulty workmanship for which the

Insured, his employees, contractors or subcontractors may be liable (but this limitation shall not exclude

resulting damage arising out of such faulty workmanship).

3. THIS POLICY DOES NOT COVER liability assumed by the Insured by Agreement under any

Contract unless such liability would have attached to the Insured even in the absence of such

Agreement.

4. THIS POLICY DOES NOT COVER liability of the Insured directly or indirectly occasioned by,

happening through or in consequence of War, invasions, act of foreign enemy, hostilities (whether

War be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power.

5. THIS POLICY DOES NOT COVER liability arising out of the operation of an airfield control tower unless

previously agreed by Insurers.

6. Each section of this Policy excludes liability which is or would be covered under any other section of the

Policy, whether such other section is insured hereunder or not.

7. This Policy is subject to the attached Nuclear Risks Exclusion Clause.

PAYMENT OF COSTS

In addition to the limits set out in the Schedule, Insurers will pay all legal and other costs incurred with their

consent in the defence of any claim made against the Insured,

PROVIDED THAT

In the event of their requiring any claim to be contested

(a) If the claim be successfully resisted by the Insured the Insurers will pay all costs, charges and

expenses incurred by the Insured in connection therewith up to but not exceeding the sum insured

under this Policy.

(b) If a payment exceeding the sum insured has to be made to dispose of a claim, the liability of Insurers to pay

any costs, charges and expenses in connection therewith shall be limited to such proportion of the said costs,

charges and expenses as the sum insured by this Policy bears to the amount paid to dispose of the claim.

DEFINITIONS

1. ACCIDENT. The word “accident” shall be understood to mean an accident or series of accidents

arising out of one event or occurrence.

2. FLIGHT. The term “in flight” means the time commencing with the actual take off run of the aircraft and

continuing thereafter until it has completed its landing run.

GENERAL CONDITIONS:

1. Upon the happening of any accident likely to give rise to a claim under this Policy or upon the receipt by the

Insured of notice of any claim or of any other subsequent proceedings, notice in writing with full particulars

shall be given to Insurers as soon as possible after the same shall come to the knowledge of the Insured or

the Insured’s representative. Every letter, claim, writ, summons or process shall be forwarded to Insurers

immediately on receipt by the Insured.

2. All notices as specified above shall be given by the Insured to the person(s) or firm named for the

purpose in the Schedule.

3. If any claim under this Policy is also covered in whole or in part by any other insurance, the liability of

Insurers shall be limited to their rateable proportion of such claim.

4. If the Insured 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.

5. This Policy may be cancelled at any time at the written request of the Insured or may be cancelled by or on

behalf of the Insurers provided 15 days notice in writing be given. (Where 15 days notice is contrary to the

law or statute then the minimum period that is permitted shall be substituted therefor). If the Policy shall be

cancelled by the Insured the Insurers shall retain the earned premium hereon for the period that this Policy

has been in force calculated in accordance with the basis in the Schedule, or the short rate proportion of the

minimum premium, calculated in accordance with the customary scale whichever is the greater.

If the Policy shall be cancelled by Insurers they shall retain the earned premium hereon for the period that

this Policy has been in force, calculated in accordance with the basis in the Schedule or pro rata of the

minimum premium whichever is the greater. Notice of cancellation by the Insurers shall be effective even

though the Insurers make no payment or tender of return premium.

6. It is a condition precedent to the right of the Insured to be indemnified under this Insurance that

(a) If after this Insurance has been effected, the risk is materially altered, such alterations must be

notified in writing to the Insurers immediately.

(b) No liability shall be admitted and no admission, arrangement, offer, promise or payment shall

be made by the Insured without the written consent of Insurers, who shall be entitled, if they so desire,

to take over and conduct in the name of the Insured the defence of any claim or to

prosecute in the name of the Insured for their own benefit any claim for indemnity or damages

or otherwise against any third party, and shall have full discretion in the conduct of any

negotiations or proceedings or the settlement of any claim, and the Insured shall give all such

information and assistance as Insurers may require.

(c) The Insured shall and will at all times exercise reasonable care in seeing that the ways,

implements, plant, machinery and appliances used in the Insured’s business are substantial and

sound and in proper order, and fit for the purpose for which they are used, and that all reasonable

safeguards and precautions against accidents are provided and used.

(d) The Insured shall comply with all International and Government Regulations and Civil

Instructions.

7. Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the

total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in

this Policy.

48FLY00001

Lloyd’s Accident and

Illness Policy

Whereas the Assured, with a view to effecting an insurance as hereinafter provided

with the Underwriters (as defined below) has presented from each Insured Person

mentioned in the Schedule of Insured Persons (hereinafter called “the Insured Person”) a

separate proposal upon which the Underwriters have determined their terms and conditions.

We, Underwriting Members of the syndicates whose definitive

numbers and proportions are shown in the Table attached hereto (hereinafter referred to as

"the Underwriters"), hereby agree, in consideration of the payment to us by or on behalf of

the Assured of the premium specified in the Schedule to insure against Bodily Injury

and/or Illness in the manner and to the extent hereinafter provided.

The Underwriters hereby bind themselves severally and not jointly, each for

his own part and not one for another and therefore each of the Underwriters (and their

Executors and Administrators) shall be liable only for his own share of his syndicate's

proportion of any amounts payable hereunder. The identity of each underwriting member

of the syndicates shown in the Table and the amounts of their respective shares may be

ascertained by the Assured or the Assured's representative on application to Lloyd's Policy

Signing Office quoting the Lloyd's Policy Signing Office number and date shown in the

Table.

In Witness whereof the General Manager of Lloyd’s Policy Signing Office has

signed this Policy on behalf of each of Us.

LLOYD’S POLICY SIGNING OFFICE General Manager

KA NMA 2989 (13.4.04) Form approved by Lloyd’s Market Association [Non-Marine]

THE ASSURED IS REQUESTED TO READ THIS POLICY AND, IF IT IS INCORRECT, RETURN IT

IMMEDIATELY TO YOUR BROKER FOR ALTERATION.

IN ALL COMMUNICATIONS THE POLICY NUMBER APPEARING IN LINE ONE OF THE

SCHEDULE SHOULD BE QUOTED.

Words in bold print in this Insurance have special meaning, as defined in the DEFINITIONS of this Insurance

IMPORTANT NOTICE

PLEASE NOTE THAT SEPARATE INSURANCE IS PROVIDED UNDER THIS POLICY FOR BODILY

INJURY CAUSED BY AN ACCIDENT AND FOR ILLNESS. THIS INSURANCE ONLY RELATES TO

THE BENEFITS OF THE POLICY WHICH ARE SHOWN IN THE SCHEDULE AS BEING INCLUDED

AND FOR WHICH PREMIUM HAS BEEN PAID.

THE ASSURED MUST DISCLOSE TO THE UNDERWRITERS ALL FACTS, MATTERS AND

CIRCUMSTANCES MATERIAL TO THIS INSURANCE, INCLUDING, BUT NOT LIMITED TO

WHETHER THE INSURED PERSON ENGAGES IN ANY OCCUPATION, SPORT OR PASTIME OR

OTHER ACTIVITY OF A HAZARDOUS NATURE.

We The Underwriters hereby agree with the Assured, to the extent and in the manner herein provided,

that if the Insured Person:

a) sustains Bodily Injury caused by an Accident or

b) suffers Illness;

we will pay to the Assured, or to the Assured's Executors or Administrators, according to the Schedule of

Benefits after the total claim shall be substantiated under this Insurance.

Provided Always That:

1. a) benefit shall not be payable under more than one of the items of the Schedule of Benefits in

respect of the consequences of one Accident, except for any benefit payable hereunder in respect of

Temporary Partial Disablement preceding or following Temporary Total Disablement, or of one

Illness, and

b) no weekly benefit shall become payable until the total amount thereof has been ascertained and

agreed. Where any payment is made for weekly benefit, the amount so paid shall be deducted from

any lump sum subsequently payable in respect of the same Accident or Illness.

2. the total sum payable under this Insurance in respect of any one or more claims shall not exceed in all the

largest benefit under any one of the items contained in the Schedule of Benefits.

3. if Item 1 of the Schedule of Benefits is not covered, then no claim shall be payable, other than for weekly

benefits, in respect of any Accident which would have given rise to a claim for death had that item been

covered.

4. if Item 1 of the Schedule of Benefits is covered and an Accident causes the death of the Insured Person

within twelve months following the date of the Accident and prior to the definite settlement of the benefit

for disablement provided for under Items 2 to 7 of the Schedule of Benefits, there shall be paid only the

benefit provided for in the case of death.

5. no benefit shall be payable under Items 10 or 11 of the Schedule of Benefits should Illness cause the death

of the Insured Person within twelve months of that Illness first manifesting itself.

DEFINITIONS

In this Insurance:

1. 'BODILY INJURY' means identifiable physical injury which

a) is caused by an Accident, and

b) solely and independently of any other cause, except illness directly resulting from, or medical or

surgical treatment rendered necessary by such injury, occasions the death or disablement of the

Insured Person within twelve months from the date of the Accident.

2. 'ACCIDENT' means a sudden, unexpected, unusual, specific event which occurs at an identifiable time

and place during the Period of Insurance.

Accident shall also include disappearance. If the Insured Person is not found within twelve months of

disappearing, and sufficient evidence is produced satisfactory to the Underwriters that leads them

inevitably to the conclusion that the Insured Person has sustained Bodily Injury and that such injury has

caused the Insured Person’s death, the Underwriters shall forthwith pay any death benefit, where applicable,

under this Insurance, provided that the person or persons to whom such sum is paid shall sign an

undertaking to refund such sum to the Underwriters if the Insured Person is subsequently found to be living.

3. 'ILLNESS' means sickness or disease of the Insured Person which first manifests itself during the Period

of Insurance and occasions the total disablement of the Insured Person within twelve months after

manifesting itself.

4. 'TEMPORARY TOTAL DISABLEMENT' means disablement which entirely prevents the Insured

Person from attending to their business or occupation.

5. 'TEMPORARY PARTIAL DISABLEMENT' means disablement which prevents the Insured Person

from attending to a substantial part of their business or occupation.

6. 'PERMANENT TOTAL DISABLEMENT' means disablement which entirely prevents the Insured

Person from attending to any business or occupation for which they are reasonably suited by training,

education or experience and which lasts twelve months and at the end of that period is beyond hope of

improvement.

7. 'LOSS OF A LIMB' means permanent loss by physical separation of a hand at or above the wrist or of a

foot at or above the ankle and includes permanent total and irrecoverable loss of use of hand, arm or leg.

EXCLUSIONS

This Insurance does not cover claims in any way caused or contributed to by:

1. war, whether war be declared or not, hostilities or any act of war or civil war;

2. the actual or threatened malicious use of pathogenic or poisonous biological or chemical materials;

3. nuclear reaction, nuclear radiation or radioactive contamination;

4. the Insured Person engaging in or taking part in armed forces service or operations;

5. the Insured Person engaging in flying of any kind other than as a passenger;

6. the Insured Person’s suicide or attempted suicide or intentional self-injury or the Insured Person being in a

state of insanity;

7. venereal disease or Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC) or

Human Immuno-deficiency Virus (HIV) howsoever these have been acquired or may be named;

8. the Insured Person’s deliberate exposure to exceptional danger (except in an attempt to save human life);

9. the Insured Person 's own criminal act;

10. the Insured Person being under the influence of alcohol or drugs;

11. pregnancy or childbirth;

12. neuroses, psychoneuroses, psychopathies or psychoses, anxiety, stress, fatigue or mental or emotional

diseases or disorders of any type.

CONDITIONS

1. If the Insured Person shall regularly engage in any occupation, sport, pastime or other activity in which

materially greater risk may be incurred than previously disclosed in connection with this Insurance without

first notifying the Underwriters and obtaining their written agreement to the inclusion under this Insurance,

(subject to the payment of any additional premium as the Underwriters may reasonably require as the

consideration for such agreement), then no claim shall be payable in respect of any Accident or Illness

arising from such activity.

2. Unless otherwise declared and agreed by the Underwriters no benefit will be payable for any condition for

which the Insured Person has sought advice, diagnosis, treatment or counselling or of which the Insured

Person was or should reasonably have been aware at inception of this Insurance or for which the Insured

Person has been treated at any time prior to inception.

3. Notice must be given to the Underwriters as soon as reasonably practicable of any Accident or Illness

which causes or may cause a claim within the meaning of this Insurance, and the Insured Person must as

early as possible seek the attention of a duly qualified medical practitioner. Notice must be given to the

Underwriters as soon as reasonably practicable in the event of the death of the Insured Person resulting or

alleged to result from an Accident.

All medical records, notes and correspondence referring to the subject of a claim or a related pre-existing

condition shall be made available on request to any medical adviser appointed by or on behalf of the

Underwriters and such medical adviser shall, for the purpose of reviewing the claim, be allowed so often as

may be deemed necessary to make an examination of the Insured Person.

4. Any fraud, concealment, or deliberate mis-statement either in the proposal on which this Insurance is based

or in relation to any other matter affecting this Insurance or in connection with the making of any claim

hereunder shall render this Insurance null and void and all claims hereunder shall be forfeited.

5. The law and jurisdiction applicable to this insurance contract are as stated in the Schedule.

The Table of Syndicates referred to in the Policy follows:-

One Lime Street London EC3M 7HA

SCALE OF PERMANENT DISABILITIES BY ACCIDENT

The percentage of the sum insured under Item 2 in respect of Permanent Total or Permanent Partial Disablement shall be as follows:-

Permanent total disablement

Total loss of sight of both eyes. 100% Total incurable insanity. 100% Loss of both arms or both hands. 100% Complete deafness of both ears, of traumatic origin. 100% Removal of the lower jaw. 100% Loss of speech. 100% Loss of one arm and one leg. 100% Loss of one arm and one foot. 100% Loss of one hand and one foot. 100% Loss of one hand and one leg. 100% Loss of both legs. 100% Loss of both feet. 100%

Permanent partial disablement

Head Loss of osseous substance of the skull in all its thickness

surface of at least 6 sq.cm. 40% surface of 3 to 6 sq.cm. 20% surface of less than 3 sq.cm. 10%

Partial removal of the lower jaw, rising section in its entirety or half of the

maxillary bone. 40% Loss of one eye. 40% Complete deafness of one ear. 30%

Upper Limbs Right Left Loss of one arm or one hand. 60% 50% Considerable loss of osseous substance of the arm (definite and incurable lesion) 50% 40%

Total paralysis of the upper limb (incurable lesion of the nerves). 65% 55% Total paralysis of the circumflex nerve. 20% 15% Shoulder anchylosis. 40% 30% Elbow anchylosis

in favourable position (15 degrees round the right angle). 25% 20% in unfavourable position. 40% 35%

Extensive loss of osseous substance of the two bones of the forearm

(definite and incurable lesion). 40% 30% Total paralysis of the median nerve. 45% 35% Total paralysis of the radial nerve at the torsion cradle. 40% 35% Total paralysis of the forearm radial nerve. 30% 25% Total paralysis of the hand radial nerve. 20% 15% Total paralysis of the cubital nerve. 30% 25% Anchylosis of the wrist in favourable position (straight and in pronation).

20% 15%

Anchylosis of the wrist in unfavourable position (flexion or strained extension or supine position). 30% 25%

Total loss of thumb. 20% 15%

Partial loss of thumb (ungual phalanx). 10% 5% Total anchylosis of thumb. 20% 15% Total amputation of forefinger. 15% 10% Amputation of two phalanges of forefinger. 10% 8% Amputation of the ungual phalanx of forefinger. 5% 3% Simultaneous amputation of thumb and forefinger. 35% 25% Amputation of thumb and a finger other than forefinger. 25% 20% Amputation of two fingers other than thumb and forefinger 12% 8% Amputation of three fingers other than thumb and forefinger. 20% 15% Amputation of four fingers including thumb. 45% 40% Amputation of four fingers excluding thumb. 40% 35% Amputation of the median finger. 10% 8% Amputation of a finger other than thumb, forefinger and median. 7% 3%

Lower Limbs Amputation of thigh (upper half). 60% Amputation of thigh (lower half) and leg. 50% Total loss of foot (tibio-tarsal disarticulation). 45% Partial loss of foot (sub-ankle-bone disarticulation). 40% Partial loss of foot (medio-tarsal disarticulation). 35% Partial loss of foot (tarso-metatarsal disarticulation). 30% Total paralysis of lower limb (incurable nerve lesion). 60% Complete paralysis of the external poplitic sciatic nerve. 30% Complete paralysis of the internal poplitic sciatic nerve. 20% Complete paralysis of two nerves (poplitic sciatic external and internal).

40%

Anchylosis of the hip. 40% Anchylosis of the knee. 20% Loss of osseous substance from thigh or both bones of the leg (incurable condition).

60%

Loss of osseous substance of the knee-pan with considerable separation of the fragments and considerable difficulty of movements in stretching the leg.

40%

Loss of osseous substance of the knee-pan while the movements are preserved.

20%

Shortening of the lower limb by at least 5 cm. 30% Shortening of the lower limb by 3 to 5 cm. 20% Shortening of the lower limb by 1 to 3 cm. 10% Total amputation of all the toes. 25% Amputation of four toes including big toe. 20% Amputation of four toes. 10% Anchylosis of the big toe. 10% Amputation of two toes. 5% Amputation of one toe other than the big toe. 3%

Anchylosis of the fingers (other than thumb, and forefinger) and of the toes (other than the big toe) shall only entitle to 50% of the compensation which would be due for the loss of the said members.

Permanent disabilities by accident not mentioned above shall be compensated in accordance with their seriousness as compared with that of those mentioned, the occupation of the Insured Person not being taken into consideration.

The partial or total "functional" disablement, not specifically dealt with in the Scale of Permanent Disabilities, of a limb or an organ is treated like the partial or total loss of the said limb or organ.

The total compensation payable in respect of several disablements due to the same accident is arrived at by adding together the various sums, but shall not exceed the total sum insured under Item 2 of the Schedule of Compensation.

If the Insured Person is left-handed and has specifically mentioned this on the Proposal Form, the percentages set out above for the various disabilities of the right upper limb and left upper limb will be transposed.

LONDON AIRCRAFT INSURANCE POLICY

Headings and marginal captions are inserted for the purpose of convenient reference only and are

not to be deemed part of this Policy.

Certain words and phrases used in this Policy have special meanings which can be found in Section

IV(D) Definitions.

The Insurers agree to insure against loss, damage or liability, arising out of an Accident occurring

during the Period of Insurance to the extent and in the manner provided in this Policy.

SECTION I LOSS OF OR DAMAGE TO AIRCRAFT

1. Coverage

a) The Insurers will at their option pay for, replace or repair, accidental loss of

or damage to the Aircraft described in the Schedule arising from the risks

covered, including disappearance if the Aircraft is unreported for sixty days

after the commencement of Flight, but not exceeding the Amount Insured

as specified in Part 2(5) of the Schedule and subject to the amounts to be

deducted specified in Condition 3(c).

b) If the Aircraft is insured hereby for the risks of Flight, the Insurers will, in

addition, pay reasonable emergency expenses necessarily incurred by the

Insured for the immediate safety of the Aircraft consequent upon damage

or forced landing, up to 10 per cent of the Amount Insured as specified in

Part 2(5) of the Schedule.

2. Exclusions applicable to this Section only

a) wear and tear, deterioration, breakdown, defect or failure howsoever

caused in any Unit of the Aircraft and the consequences thereof within

such 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.

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

a) If the Aircraft is damaged

i) no dismantling or repairs shall be commenced without the consent of

the Insurers except whatever is necessary in the interests of safety,

Wear and

Tear,

Breakdown

Dismantling

Transport

and Repairs

or to prevent further damage, or to comply with orders issued by the

appropriate authority;

ii) (ii) the Insurers will pay only for repairs and transport of labor and

materials by the most economical method unless the Insurers agree

otherwise with the Insured.

Passengers

Property

Noise and Pollution

and Other Perils

(a) injury (fatal or otherwise) or loss sustained by any passenger whilst

entering, on board, or alighting from the Aircraft;

(b) loss of or damage to any property belonging to or in the care, custody or

control of the Insured;

(c) Claims excluded by the attached Noise and Pollution and Other Perils

Exclusion Clause.

3. Limit of Indemnity applicable to this Section

The liability of the Insurers under this Section shall not exceed the amount

stated in Part 6(C) of the Schedule, less any amounts under Part 6(B). The

Insurers will defray in addition any legal costs and expenses incurred with

their 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

claim exceed the Limit of Indemnity then the liability of the Insurers 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.

See also Section IV

SECTION III LEGAL LIABILITY TO PASSENGERS

1. Coverage

The Insurers 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

1. accidental bodily injury (fatal or otherwise) to passengers whilst entering,

on board, or alighting from the Aircraft and

2. loss of or damage to baggage and personal articles of passengers arising

out of an Accident to the Aircraft.


i. before a passenger boards the Aircraft the Insured shall take such

measures as are necessary to exclude or limit liability for claims

under (a) and (b) above to the extent permitted by law;

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 liability of the

Insurers under this Section shall not exceed the amount of the legal liability, if

any, that would have existed had the proviso been complied with.

2. Exclusions applicable to this Section only

The Insurers shall not be liable for injury (fatal or otherwise) or loss

sustained by any

(a) 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) member of the flight, cabin or other crew whilst engaged in the

operation of the Aircraft.

3. Limits of Indemnity applicable to this Section

The liability of the Insurers under this Section shall not exceed the

amounts stated in Part 6(C) of the Schedule, less any amounts under

Part 6(B). The Insurers will defray in addition any legal costs and

expenses incurred with their 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 claim exceed the Limit of Indemnity

then the liability of the Insurers 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.

See also Section IV

Illegal use

Geographical Limits

Pilots

Transportation by

other conveyance

Landing and Take

off areas

SECTION IV

(A) GENERAL EXCLUSIONS APPLICABLE TO ALL SECTIONS

This Policy does not apply

(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 those stated in Part 3 of the Schedule and as defined in the

Definitions.

2. Whilst the Aircraft is outside the geographical limits stated in Part 5 of the

Schedule unless due to force majeure.

3. Whilst the Aircraft is being piloted by any person other than as stated in

Part 4 of the Schedule except that the Aircraft may be operated on the

ground by any person competent for that purpose.

4. Whilst the Aircraft is being transported by any means of conveyance

except as the result of an Accident giving rise to a claim under Section I

of this Policy.

5. Whilst the Aircraft is landing on or taking off or attempting to do so from a

place which does not comply with the recommendations laid down by the

manufacturer of the Aircraft except as a result of force majeure.

Contractual Liability

Numbers of

passengers

6. To liability assumed or rights waived by the Insured under any agreement

(other than a passenger ticket/baggage check issued under Section III

hereof) except to the extent that such liability would have attached to the

Insured in the absence of such agreement.

7. Whilst the total number of passengers being carried in the Aircraft

exceeds the declared maximum number of passengers stated in Part 2(4)

of the Schedule.

Non-Contribution

Nuclear Risks

War,

Hi-jacking,

and other

perils

8. To claims which are payable under any other 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.

9. To claims excluded by the attached Nuclear Risks Exclusion Clause.

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 labor 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, nationalization, 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) 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 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 (such safe return shall require that the Aircraft be

parked with engines shut down and under no duress).

Due diligence

Compliance with

Air Navigation

Orders, etc.

B) CONDITIONS PRECEDENT APPLICABLE TO ALL SECTIONS

It is necessary that the Insured observes and fulfils the following Conditions

before the Insurers have any liability to make any payment under this Policy.

1. The Insured shall at all times use due diligence and do and concur in doing

everything reasonably practicable to avoid accidents and to avoid or diminish

any loss hereon.

2. The Insured shall comply 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

Claims

procedure

Claim control

Subrogation

(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.

3. Immediate notice of any event likely to give rise to a claim under this Policy

shall be given as stated in Part 8 of the Schedule. In all cases the Insured shall

(a) furnish full particulars in writing of such event and forward immediately

notice of any claim with any letters or documents relating thereto;

(b) give notice of any impending prosecution;

(c) render such further information and assistance as the Insurers may

reasonably require;

(d) not act in any way to the detriment or prejudice of the interest of the

Insurers.

The Insured shall not make any admission of liability or payment or offer or

promise of payment without the written consent of the Insurers.

(C) GENERAL CONDITIONS APPLICABLE TO ALL SECTIONS

1. The Insurers shall be entitled (if they so elect) at any time and for so long as

they desire to take absolute control of all negotiations and proceedings and in

the name of the Insured to settle, defend or pursue any claim.

2. Upon an indemnity being given or a payment being made by the Insurers

under this Policy, they shall be subrogated to the rights and remedies of the

Insured who shall cooperate with and do all things necessary to assist the

Insurers to exercise such rights and remedies

Variation in risk

Cancellation

Assignment

Non marine

insurance

1. 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 Insurers and no claim arising subsequent to such

change shall be recoverable hereunder unless such change has been

accepted by the Insurers.

2. This Policy may be cancelled by either the Insurers or the Insured giving

10 days notice in writing of such cancellation. If cancelled by the Insurers

they will return a pro rata portion of the premium in respect of the

unexpired period of the Policy. If cancelled by the Insured a return of

premium shall be at the discretion of the Insurers. There will be no return

of premium in respect of any Aircraft on which a loss is paid or is payable

under this Policy.

3. This Policy shall not be assigned in whole or in part except with the

consent of the Insurers verified by endorsement hereon6.

4. This Policy is not and the parties hereto expressly agree that it shall not

be construed as a policy of marine insurance.

Arbitration

Two and more

Aircraft

Limit(s) of

Indemnity

False and

fraudulent Claims

5. This Policy shall be construed in accordance with English Law and any

dispute or difference between the Insured and the Insurers shall be

submitted to arbitration in London in accordance with the Statutory

provision for arbitration for the time being in force.

6. When two or more Aircraft are insured hereunder the terms of this Policy

apply separately to each.

7. Notwithstanding the inclusion herein of more than one Insured, whether

by endorsement or otherwise, the total liability of the Insurers in respect

of any or all Insureds shall not exceed the Limit(s) of Indemnity stated in

this Policy.

8. If the Insured 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.

D) DEFINITIONS

1. "ACCIDENT" means any one accident or series of accidents arising out of one event.

2. "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.

3. "OVERHAUL LIFE" means the amount of use, or operational and/or calendar time which,

according to the Airworthiness Authority, determines when overhaul or replacement of a Unit

is required.

4. "OVERHAUL COST" means the costs of labor 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.

5. "PRIVATE PLEASURE" means use for private and pleasure purposes but NOT use for any

business or profession nor for hire or reward.

6. "BUSINESS" means the uses stated in Private Pleasure and use for business or professional

purposes but NOT use for hire or reward.

7. "COMMERCIAL" means the uses stated in Private Pleasure and Business and use for the

carriage by the Insured of passengers, baggage accompanying passengers and cargo for

hire or reward.

8. "RENTAL" means rental, lease, charter or hire by the Insured to any person, company or

organization 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 Insurers and the detail of such use(s) stated in Part

3 of the Schedule under SPECIAL RENTAL USES.

9. Definitions 5, 6, 7 and 8 constitute Standard Uses and do not include instruction, aerobatics,

hunting, patrol, fire-fighting, the intentional dropping, spraying or release of anything, any

form of experimental or competitive flying, and any other use involving abnormal hazard, but

when cover is provided details of such use(s) are stated in Part 3 of the Schedule under

SPECIAL USES.

10. ."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

11. "TAXIING" means movement of the Aircraft under its own power other than in Flight as

defined above. Taxiing shall not be deemed to cease merely by reason of a temporary

halting of the Aircraft.

12. "MOORED" means, in the case of aircraft designed to land on water, whilst the Aircraft is

afloat and is not in Flight or Taxiing as defined above, and includes the risks of launching and

hauling up.

13. "GROUND" means whilst the Aircraft is not in Flight or Taxiing or Moored as defined above.

AVN 1C 21.12.98

國泰產物 aircraft hull spares,war and liability insurance · crew and passengers of the...

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