How Air Craft Owners Can Insure the their Pilots

AVIATION INSURANCE

Aviation operations are required to comply strictly to the prescribed minimum limits of aircraft operators by the Federal Ministry of Aviation.

However, the minimum insurance requirement in Nigeria conforms to the international requirements. For example War-Saw convention in Geneva provides in its section I cover for damages for aircraft's while section II and III provides covers for passengers.

Although there are several risks covered by Aviation Insurance, the insurance of the aircraft passengers and crew are among the other compulsory covers to be obtained in aviation insurance.

Third Party Motor Insurance

According to Nigeria’s Road Traffic Act (1972) as amended) it is compulsory for any motorist to insure his or her vehicle at least on a third party policy. It provides cover for third party liability – Fire and Theft. It does not cover own damage but injury or death to third parties arising from motor accidents. It is the minimum insurance cover required from any motorist or by law before or while operating on Nigerian roads.

MOTOR VEHICLE

Motor Vehicle insurance falls within the broad division of accident insurance, but since it is of such general interest and importance, it is also necessary to examine it at some length.

By the Motor Vehicles (Third Party Insurance) Act 1950, it is compulsory for all motor vehicles owners to insure their vehicles against third party risks i.e. to insure against the risk of liability for death or bodily injury. Moreover, section 31 of the Act provides that it is unlawful to use or permit any person to use a motor vehicle unless there is in force, in relation to the user of that vehicle by such person, person or such other person as the case may be. Such a policy or insurance or such a security for third party risks in accordance with the provision of section 6 of Act. If the user or a motor vehicle is not covered against liability for third party risk, both the owner and the drivers can be successful prosecuted.

Section 6 stipulates that the policy must be issued by an approved insurer and that it must be one which insures such person or classes of person as may be specified in it in respect of death or bodily injury to any person caused by or arising out of the use of the motor vehicle covered by the party the policy.

It is clear that the provision is restricted to death or bodily injury occasional to third parties. It does not cover damages to property of third party, the insured’s property or vehicle or to injury to his person.

GROUP LIFE INSURANCE

In country such as Japan where employers realize that workers loyalty to the corporate establishment is crucial to the achievement of corporate objectives and goal, group life insurance has been used a primary incentive to hard work. When a worker is confident that his whole life labor will not be in vain after all, chances are that such confidence will elicit dedication and loyalty from him. Productivity levels will rise and this will turn enhance the overall health of the national economy.

Group life insurance is a vital tool for enhancing national productivity. Where employees are never sure of receiving any appreciable compensation when they become old and retire, it becomes rampant for them to jump from one firm to another in search of the proverbial green pastures. Under group life insurance, the employer will sign a master contract with the insurance company. The contract will explain the provision of the plan. Each employee will be given a certificate which will serve as an evidence of his participation in the group life insurance plan. The employee’s salary level or job classification will determine the value of insurance to be taken. The employer will pay a portion of the premium while the employee will pay the rest. Very often, though the employer bears the entire cost of the insurance. If the employee leaves the company, he has the option of converting the policy to  an individual policy. Group life insurance is made available to all employees regardless of their state of health.

Again, the premiums paid are generally less than those paid for individual policies. This is because of the minimal administrative cost involved in arranging group life policies. An insurer may only require that the group to be insured should not fall below certain minimum number, or that they should all belong to a uniform occupational or professional group. Nonetheless, it is usually easy to work out the terms. Group health insurance schemes also abound for employees and other groups of people who may suffer as a result of illness, hospitalization, injuries, surgical expenses and disability. This policy can also be obtained on an individual basis. But it may form part of an employee benefit plan. Reimbursement loss having regards to the terms of the policy. (Historic Strides 1999:14)

LIABILITY INSURANCE

Liability Insurance provides cover for the insured against his legal liability to others. This can arise through the negligence of the insured in failing to act in a reasonable manner. Such as crossing the road without looking which leads to an accident. It can also arise through insured’s unlawful disturbance of another person in the enjoyment of his property – (nuisance) or through the insured’s trespass which is unlawful act committed with force or violence on another person’s property.

The insured person can incur public liability through statutory provisions which may hold him or her liable for the loss of a person’s property due to his or her negligence which he or her contributed with third parties. Such liabilities include

• The employer’s liability to his employee.
• The employee’s liability to his employer.
• The public liability by the insured.