• Sharebar
Aviation Insurance
Monday, March 1, 2010
Dificult and expensive

The FSB has continued its launch against the use of non-registered insurers by putting out Directive 149.A ii(ST) which requires any use of non-registered insurers to be put in as a preliminary notice 30 days ahead of a final application, which itself has to be in 21 days ahead of inception. This could make life very difficult and expensive, as there are only five local insurers and Lloyd’s. It seems that the FSB has little interest in the workings of a specialist market like aviation where it is often impossible to get terms from an insurer more than 30 days ahead of inception and then to approach the whole market and then to have to go overseas to find the best terms just cannot be done in such a short time.

Another problem is that many risks come up at very short notice – a few days ahead of inception and only the non-registered market is available.
The penalties for late submission are R100 per day. Ouch!
I trust that the brokers and their associations will take this up fast and furiously with the FSB. It should have been done a couple of years back, if not before then but no one thought that the FSB would put this pressure on. By Henry Tours, Aviation Consultant
 

Copyright © Insurance Times and Investments® Vol:23.3 1st March, 2010
539 views, page last viewed on March 26, 2020