AVIATION ACCIDENT INSURANCE IN THE CONTEXT OF CONTRACT LAW

The existence of a significant aviation insurance market is noted and the response of the insurance industry to this market is discussed. It is thought that clearly defined categorization of insurance coverage could well be the fundamental problem of aviation insurance policies. The complexity of aviation accidents and the complexity of the law are discussed, and the development is reported of a family of insurance coverages applicable in the aviation operational world which can be described only in matrix form. For example coverages could be described as aircraft liability insurance, aircraft hull insurance, and aviation accident insurance. A proposed standardized policy is discussed which describes the coverages more from the insureds' perspective than that of the insurer. Attention is directed to a comprehensive reference aid to those seeking judicial interpretations of various provisions of aviation insurance policies, namely the Defense Research Institutes's "Anotated Aviation Insurance Policy". Cases are quoted to illustrate the causal determination related to insurance contract coverage. Pitfalls in the standardization of insurance coverage are noted.