Civil Liability Insurance is mandatory coverage in Aviation activity, both commercial and private.
What does it offer?
For all purposes, the subscription of Insurance is mandatory to cover claims that may arise during aeronautical operations and with respect to the insured aircraft(s).
The limits are set in the Regulation (EC) 785/2004, in it Royal Decree 37/2001, as well as in the Air Navigation Law (Law 48/1960) of July 21.
Through this coverage, the Insurer will pay all sums for which the Insured is legally obliged to pay for damages with respect to the CR (Civil Liability) that the Insured may incur as a consequence of its Aviation operations with respect to the insured aircraft.
On the other hand, we must always check that the Company we contract with is authorized by the General Directorate of Insurance to underwrite aviation risks, as well as its Security or solvency level.
There are two ways to insure civil liability:
- Combined Single Limit (LUC or CSL) A single limit is used for all claims that may arise, without the application of any sublimit. It is the best way to insure a risk since we will not encounter sublimits established in the policy (they are usually sublimits per victim) that make the policy cheaper but which may mean that we have to face with our own assets apart from the compensation that a The judge could establish in favor of the victim or his heirs if the policy established by the policy was insufficient.
- Civil liability of non-passenger third parties / Civil liability of third party passengers. Two limits are established, a broader one (non-passengers) and a CR sub-limit per victim and/or passenger much smaller than the first. It is the most common way to insure aeronautical risks because the premium is lower than with the CSL.
In both cases the coverage complies with European aeronautical legislation. The choice of one or the other depends largely on the cost and the operation being carried out. For private users, the two limits are usually the most common option because in the event of an accident, the sublimit compensation per victim is usually more than enough in those cases. Commercial Air Operators usually contract the Single Combined Limit.
Who needs it?
Civil Liability Insurance is mandatory coverage for companies or private individuals that carry out aviation activities, whether commercial, private or pleasure.
