Debunking common aviation insurance myths with Mike Dalton – Part 2
Welcome to the second edition of our four-part series featuring Mike Dalton as he delves into the world of aviation insurance, debunking common myths and misconceptions. Join us as we navigate through the complexities of aviation insurance, separating fact from fiction, and ensuring you are well-informed with accurate and practical information. Stay tuned for each instalment as we unravel these myths one by one!
Myth #2 – My insurance policy will pay for an engine overhaul after a prop strike
Well, that would be nice but that’s not how it works unfortunately. In a similar way to your car
insurance, mechanical breakdowns, failures, and the like are not covered by aircraft
insurance policies. Some engine damage is covered however, but it needs to be the result of
an accident or incident not caused by the engine, such as a propellor strike.
In such scenarios, an aircraft insurance policy only pays for the following:
- Removal and reinstallation of the engine and associated components,
- Mandatory inspections as required by the regulator and/or engine, component or
propellor manufacturer, and - Damage found because of the accident.
Item 1 is straightforward and requires no further explanation.
The scope of item 2 will depend largely on the aircraft and engine fitted and will be more
costly and complex in line with the aircraft design. A Cessna 150 for instance would require
just a bulk strip inspection and magneto overhaul whereas a Beech Kingair would be
somewhat more involved.
For point 3, Items damage from, say a prop strike, could include the engine mount,
crankshaft, crankcase and certainly the propellor and these items would be either replaced
or repaired by the insurance policy ONLY if the damage was found to be cause by the
accident.
Items found to be unserviceable and in need of replacement but not damaged because of
the accident, are not covered by the insurance policy and are to the aircraft owners own
account. This could include, corroded cam shafts, worn pistons and items required by
airworthiness directives to be replaced the next time the crankcase is opened. Whilst these
may have only been discovered because of the accident, they are not damage CAUSED BY
the accident and so are excluded from the scope of policy cover.
While all policies all essentially the same, you should carefully check your own to understand
what is covered and what is excluded and, importantly, what you need to pay for as part of
that process.
Mike Dalton is our Head of Aviation at Agile Underwriting. He is a licensed pilot with a Commercial, ATP and RAAus Pilot qualifications in Australia and the US. Mike enjoys working with customers and discussing aviation and is eager to simplify aviation insurance for customers and brokers.
Mike has 30 years of insurance experience, specialising on aviation underwriting. He has extensive experience writing risks in Australia, New Zealand, Papua New Guinea, and the South Pacific and has written policies in the airline, manufacturing, airport, and general aviation industries. He has held management positions at one of Australia’s largest Aero Clubs and has his own Air Operators Certificate for passenger transport charter operations. He owns and operates a small vintage aircraft collection and has flown over 50 different general aviation aircraft types.
