As the risk manager for Travelair, analyse the key insurance issues, and the major considerations both for you and your insurers?

1. As the risk manager for Travelair, analyse the key insurance issues, and the major considerations both for you and your insurers? [30%]

 

1. Crew training
2. Passengers claiming for airlines conduct during operation
3. Total hull loss
4. Claims by 3^rd parties for deaths, injuries and economic loss for everyone on aircraft and island possibly? (Look at wider picture)

• The airline not complying with the insurance requirements through pilot conduct, procedures not being adhered to or incorrect training.
• If the crew training is outsourced how can they be sure that the flight training company (Flight Training Worldiwide Inc) provided adequate training for items that were outsourced? Did the airline have sufficient oversight?
• How does the airline which operates in different jurisdictions affect the insurance liability?
• Insurance is there to pay for claims made by the airline but also by 3^rd parties (passengers and families, 3^rd party injuries sustained by crash, airport for loss of revenue, island for loss of revenue and damages sustained as a result of crash say from loss of tourism. A lot of claims may be put in against this claim. Its important to ensure insurance requirements are complied with.
• It is the brokers jobs to provide advice to the insured. They are the point of contact with the insurance world. They provide multiple roles to airline (Please See insurance lecture presentation)
• Role of the insurer is to making sure that the claim is covered and that there is enough money to pay for the claim. An accurate assement of the claim value is needed. This is a role which covers what might happen to the airline and any losses that could arise. It simpsitatnt that providing they do their job right that any risks should already be covered under insurance.
• The hull or aircraft would be handled by the airline surveyors and the loss adjusters – In this case as the site has been tampered with by the authorities by clearing wreckage of high value items. Having said that if the hull is written off as a total loss then this may not have a serious impact as first thought.
• Liabilities would be handled by the airline lawyers. This would have major implications down to the crews actions when calculating fuel (1.8.1), the nav databse not being updated (1.8.2, this is down to the Part 145 Astrotech), the crews actions when dealing with weather conditions.

Liabilities risk of passengers. It references (1.8.11) about lack of prep by crew in cabin for impact. Again this refers back to outsourcing training.

 

Insurance is also there to advise and protect. By getting them in to advise very early on it can help with managing the crisis. Like the airport, use them as a resource. By the insurance leveraging their huge global reach you can have a better chance of minimising potential damages later on.

It is important to reference the insurance claims process.