Aircraft Policy

Wear and Tear, Breakdown, Dismantling Transport and Repairs


1. a. The underwriters will at their option pay for, replace or repair, accidental loss of or damage to the Aircraft described on the Schedule arising from the risks covered including disappearance if the Aircraft is unreported for sixty days after the commencement of flight, but not exceeding the amount insured as shown therein and subject to the amounts to be deducted shown below.

  b. If the Aircraft is insured hereby for the risks of flight, the Underwriters will, in addition, pay reasonable emergency expenses necessarily incurred by the Insured for the immediate safety of the Aircraft consequent upon damage of forced landing, up to 10 per cent of the amount insured.

Exclusions applicable to this section only

2. The Underwriters shall not be liable for

  a. Wear and tear, deterioration, breakdown, defect or failure howsoever caused in any unit (hereinafter defined) of the Aircraft and the consequences thereof within such unit.

  b. Damage to any unit by anything which has a progressive or cumulative effect but damage attributable to a single recorded incident is covered under paragraph 1 (a) above.

 However accidental loss of or damage to the Aircraft consequent upon 2 (a) and (b) above is covered under paragraph 1 (a) hereof.

Conditions applicable to this section only

3.  I. If the Aircraft is Damaged

 a. No dismantling or repairs shall be commenced without the consent of the Underwriters except whatever is necessary in the interests of safety, or to prevent further damage, or to comply with orders issued by the appropriate authority.

Payment or replacement  Amounts to be deducted from claim No Abanonment Other Insurance


  b. The Underwriters will pay only for repairs and transport of labour and materials by the most economical method unless the Underwriters agree otherwise with the Insured.

  II. If the Underwriters exercises their option to pay for or replace the Aircraft.

  a. The Underwriters may take the Aircraft (together with all documents of record, registration and title thereto) as salvage.

  b. The cover afforded by this section is terminated in respect of the Aircraft even if the Aircraft is retained by the insured for valuable consideration or otherwise.

  c. The replacement Aircraft should be of the same make & type and in reasonable condition unless otherwise agreed with the Insured.

III. Except where the Underwriters exercise their option to pay for or replace the Aircraft, there shall be deducted from the claim under paragraph 1 (a) of this section :

    a. The amount specified as deductible in the schedule and

  b. Such proportion of the Overhaul Cost (hereinafter defined) of any unit repaired or replaced as the used time bears to the Overhaul life (hereinafter defined) of the unit.

 IV. Unless the Underwriters elect to take the Aircraft as salvage the Aircraft shall at all times remain the property if the insured who shall have no right of abandonment to the Underwriters.

 V. No claim should be payable under this section if other Insurance which is payable in consequence of loss or damage covered under this section has been or should be effected by or on behalf of the insured without the Knowledge or consent of the Underwriters.



Illegal Uses







by other


Landing and

Take-off Areas





Number of


Non- Contribution


War, Hijacking

and other perils





This policy does not apply :

1. Whilst the Aircraft is being used for any illegal purpose or for any purpose other than those stated in the schedule and as defined in the definitions.

2. Whilst the Aircraft is outside the geographical limits mentioned in the schedule unless due to force majeure.

3. Whilst the Aircraft is being piloted by any person other than as stated in the schedule except that the Aircraft may be operated on the ground by any person competent for that purpose.

4. Whilst the Aircraft is being transported by any means of conveyance except as the result of an accident giving rise to a claim under section 1 of this policy.

5. Whilst the Aircraft is landing on or taking off or attempting to do so from a place which does not comply with the recommendations laid down by the manufacturer of the Aircraft except as a result of force majeure.

6. To liability assumed or rights waived by the insured under any agreement (other than passenger ticket/baggage check issued under section III hereof) except to the extent that such liability would have attached to the insured in the absence of such agreement.

7. Whilst the total number of passengers being carried in the Aircraft exceeds the declared maximum number if passengers stated in the schedule.

8. To claims which are payable under any other policy or policies except in respect if any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected.

9. To claims caused by

a. War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.

b. Any hostile detonation of any weapon of war employing atomic or nuclear fission and / or fusion or other like reaction or radioactive force or matter.

Due Dilligence



with Air


Orders, etc,


c. Strikes, riots, civil commotions or labor disturbances.

d. Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purpose and whether the loss or damage resulting therefrom is accidental or intentional.

e. Any malicious act or act of sabotage.

f. Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

g. Hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the insured.

Furthermore, this policy does not cover claims arising whilst the Aircraft is outside the control of the insured by reason of any of the above perils.

The Aircraft should be deemed to have been restored to the control of insured on the safe return of the Aircraft to the insured at an airfield not excluded by the geographical limits of this policy, and entirely suitable for the operation of the Aircraft (Such safe return need the Aircraft to be parked with engines shut down and under no duress).


1. The due observance and fulfillment of the terms, conditions and endorsements of this policy should be a condition precedent to any liability of the Underwriters to make any payment under this policy.

2. The insured, at all times, should use due dilligence and do and concur in doing everything reasonably practicable to avoid or diminish any loss hereon.

3. The insured should comply with all air navigation & Airworthiness orders and requirements issued by any competent authority affecting the safe operation of the Aircraft and should ensure that :

a. The Aircraft is airworthy at the commencement of each flight.

b. All log books and other records in connection with the Aircraft which are required by any official regulation in force from time to time should be kept up to date and should be produced to the Underwriters or their agents at request.








Variation in




c. The employees and agents of the insured comply with such orders and requirements.

4. Immediate notice of any event likely to give rise to a claim under this policy should be given as mentioned in the schedule. In all cases the insured should:

a. Furnish full particulars in writing of such event and forward immediately notice of any claim (by a third party or passenger) with any letters or documents relating thereto.

b. Give notice of any impending prosecution.

c. Render such further information and assistance as the Underwriters may reasonably require.

d. Not act in any way to the detriment or prejudice of the interest of the Underwriters.

The insured should not make any admission of liability or payment or offer or promise of payment without the written consent of the Underwriters.

5. The Underwriters should be entitled (If they so elect) at any time and for so long as they desire to take absolute control of all negotiations and proceedings and in the name of the insured to settle, defend or pursue any claim.

6. Upon an indemnity being given or a payment being made by the Underwriters under this policy, they should be subrogated to the rights and remedies of the insured who should Co-Operate with and do all things necessary to assist the Underwriters to exercise such rights and remedies.

7. Should there be any change in the circumstances or nature of the risks which are the basis of this contract, the insured shall give immediate notice thereof to the Underwriters and no claim arising subsequent to such change should be recoverable hereunder unless such change has been accepted by the Underwriters.

8. This policy may be cancelled by either the Underwriters or the insured giving 10 days notice in writing of such cancellation. If cancelled by the Underwriters, they will return a pro rata portion of the premium in respect of the unexpired period of the policy. If cancelled by the insured, a return of premium should be at the discretion of the Underwriters. There will be no




Non Marine





Two or More



Limits of



False and




Return of premium in respect of any Aircraft on which a loss is paid or is payable under this policy.

9. This policy should not be assigned in whole or part except with the consent of the Underwriters verified by endorsement hereon.

10. This policy is not and the parties hereto expressly agree that it should not be construed as a policy of marine insurance.

11. This policy should be construed in accordance with Iranian law and any dispute or difference between the insured and the Underwriters should be submitted to arbitration in Iranin accordance with the statutory provision for arbitration for the time being in force.

12. When two or more Aircraft are insured hereunder the terms of this policy, it will be applied separately to each.

13. Not withstanding the inclusion herein of more than one insured whether by endorsement of otherwise the total liability of the Underwriters in respect of any or all insureds should not exceed the limit (5) of indemnity mentioned in this policy.

14. If the insured should make any claim knowing the same to be false or fraudulent regarding amount or otherwise this policy should become void and all claims hereunder should be forfeited.


a.: ACCIDENT” means any one accident or series of accidents arising out of one event.

b. “UNIT” means a part or an assembly of parts (including any sub-assemblies) of the Aircraft which has been assigned an Overhaul life as a part or an assembly. Nevertheless, an engine completes with all parts normally attached when removed for the purpose of overhaul or replacement, should together constitute a single unit.

c. “OVERHAUL LIFE” means the amount of use, or operational and/or calendar time which according to the Airworthiness authority determines when overhaul or replacement of a unit is required.

d. “OVERHAUL COST” means the costs of labor and materials which are or would be incurred in overhaul or replacement (whichever is necessary) at -


The end of the overhaul life of the damages or a similar unit.

e. “PRIVATE PLEASURE” means use for private and pleasure purposes but not use neither for any business or profession nor for hire or reward.

F.”BUSINESS” means the uses mentioned in private pleasure and use for the purpose of the insured’s business or profession but not use for hire or reward.

g. “COMMERCIAL” means the uses mentioned in private pleasure and business and use for the carriage by the insured of passengers, baggage accompanying passengers and cargo for hire or reward.

h. “RENTAL” means rental, lease, charter or hire by the insured to any person, company or organization for private pleasure and business uses only, where the operation of the Aircraft is not under the control of the insured. Rental for any other purpose in NOT insured under this policy unless specifically declared to Underwriters under SPECIAL RENTAL USES in the schedule.

I. Definitions (e), (f), (g) and (h) constitute standard uses and do not include Instruction, Acrobatics, Hunting, Patrol, Fire Fighting, the international dropping, spraying or release of anything, any form of experimental or competitive flying, and any other use involving abnormal hazard, but when cover is provided details of such use (s) are stated in the schedule under SPECIAL USES.

j. “FLIGHT” means from the time the Aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the Aircraft completes its landing run.

k. “TAXYING” means movement of the Aircraft under its own power other than in flight as defined. Taxying should not be deemed to case merely by reason of a temporary halting of the Aircraft.

l. “MOORED” MEANS, in the case of Aircraft designed to land on water, whilst the Aircraft is afloat and is not in flight or taxying as defined, and includes the risks of launching and hauling up.

m. “GROUND” means while the Aircraft is not in flight or taxying or moored as defined.