• Sharebar
Aviation Insurance
Monday, December 1, 2008
At long last

At long last New York has signed a bill that prevents insurers from pleading late notification as a reason for chucking out claims. Until 23rd June 2008 all it took was for you to be one day late in notifying a claim and insurers could decline it without any other reason. Many insurers took this exit very happily.
Now they have to prove prejudice if the notification is up to two years late, but the insured has to prove that there would be no prejudice if the notification is over two years late.
The one set of policies that is not so affected is the “claims made” liability one. This is where cover applies if the claim is made during the policy period as opposed to the more usual basis of losses occurring – that is where the loss itself must occur during the policy period. Nearly all aviation liability policies refer to accidents or losses occurring during the policy period.
“Claims made” covers came into being when insurers realised that long-term injuries like asbestos claims wrapped them up indefinitely. Thirty years later a claim would come in and the insurer had to be found and then he had to find his old files. It was felt to be much better that whoever was on risk when these claims came in would have to answer.
Aviation doesn’t fall into this category since you generally know when you’ve crashed – it’s a much longer walk to the terminal building than usual. That way you can tell insurers straight away.
I trust that other legal systems in other countries will fall in line swiftly. By Henry Tours, Aviation Consultant

Copyright © Insurance Times and Investments® Vol:21.11 1st December, 2008
497 views, page last viewed on December 13, 2019