The Certificate of Insurance cover note

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					                                  The Certificate of
                              Insurance / cover note
                                                                       Text by Athol Franz

        All aircraft owners are aware and are used to managing their annual insurance renewals. It is a time when one goes over the aircraft
        insurance to ensure that coverage has been placed in accordance with one’s requirements. This is also typically when one updates
                              the agreed values, recalculates one’s flying hours, and hopes for a reduction in premium.

Whilst	 it	 is	 a	 good	 practice	 to	 go	 over	 everything	 with	 your	 broker	 at	 the	   ‘Private business and pleasure’ refer to your own private flying, whilst
time	 of	 the	 renewal,	 it	 is	 also	 important	 to	 reassess	 the	 coverage	 on	 the	     ‘industrial aid’ refers to any flying for your business, e.g. an engineering
insurance	 policy	 from	 time	 to	 time	 and	 especially	 important	 to	 do	 so	 in	        firm flying an engineer to a building site for inspection, or a company flying
turbulent times. The certificate of insurance is one of the most important                  staff	to	a	business	meeting	in	a	company	owned	aircraft.	It	is	important	to	
documents	 changing	 hands	 between	 insurers,	 brokers,	 the	 insured	 party,	             distinguish between ‘industrial aid’ and ‘charter.’ The latter refers to flying for
additional	insured	parties	and	countless	other	third	parties.	Referring	to	the	             reward. ‘industrial aid’ would not cover any flying for reward, which needs to
certificate of insurance, or cover note, will provide a brief overview of your              be	covered	by	adding	‘charter’	to	the	list	of	insured	uses.
current	 coverage	 and	 also	 give	 you	 an	 immediate	 indication	 of	 how	 your	
current	cover	has	been	arranged.	It	is	therefore	of	utmost	importance	that	                 ‘Advanced	instruction’	refers	to	any	instruction	you	may	receive	other	than	ab-
one familiarises oneself with the content of the certificate or cover note,                 initio	(student)	training	and	conversion	to	type	training,	both	of	which	have	to	
irrespective	of	time	constraints	or	the	length	of	the	document.	A	few	minutes	              be specifically noted on the Insurance contract, in addition to the standard
of	your	time	could	possibly	spare	you	a	lot	of	hassle	down	the	line.	                       uses. Any additional commercial uses need to be specifically noted. This
Important	points	to	consider                                                                includes any form of flying for reward such as commercial passenger and
                                                                                            cargo	carriage	(charter)	and	other	commercial	uses	such	as	aerial	surveillance,	
‘The	Insured’	refers	to	the	entity	or	person	entering	into	the	insurer	contract,	           aerial photography, film work, vehicle and asset tracking, game census, game
with	 the	 Insured	 being	 the	 legal	 owner	 of	 the	 aircraft	 being	 insured.	 For	      counts, rental to any third parties, hire and fly by any third parties.
example,	the	aircraft	may	be	registered	in	the	name	of	a	company,	partnership	
or	other	legal	entity,	whilst	you	have	(incorrectly)	been	noted	as	the	Insured.	            ‘Permitted pilots’ refer to the pilots who are covered to fly the aircraft in terms of
‘Geographical	 limits’	 refer	 to	 the	 insured	 areas	 in	 which	 the	 aircraft	 may	      the insurance contract. This would include any pilots specifically named under
be	 operated.	 Typically	 this	 would	 include	 South	 Africa	 and	 neighbouring	           the	policy	(named	pilots)	as	well	as	any	open	pilot	warranties,	which	make	
countries	 or	 territories:	 Namibia,	 Botswana,	 Zimbabwe,	 Mozambique,	                   provision	to	cover	unnamed	pilots	complying	with	the	minimum	requirements	
Swaziland	and	Lesotho.	However,	an	area	commonly	referred	to	us	as	‘The	                    stated	in	the	warranties.	A	typical	open	pilot	warranty	for	a	single	engine	turbine	
Lesotho	Mountains’	is	often	excluded.	This	exclusion	refers	to	the	area	to	the	             fixed wing aircraft doing charter work, would read ‘authorised commercially
east	and	south	of	an	imaginary	line	drawn	on	a	map	of	Lesotho,	connecting	                  licensed pilots with a minimum of 1,000 hours total fixed wing time of which at
Quithing, Mohaleshoek, Roma and Libono. However, over flying the entire                     least	250	hours	are	in	respect	of	turbines	including	at	least	25	hours	on	make	
Lesotho	in	a	multi	engine	aircraft	is	covered.                                              and	model.’	This	is	often	extended	to	include	‘and	having	had	no	losses	in	the	
                                                                                            last five years.’ Airborne Insurance Consultants ensure that their clients and any
If	 you	 are	 currently	 operating	 in	 any	 other	 countries,	 you	 need	 to	 notify	      parties	leasing	the	aircraft	from	their	clients	(including	all	their	pilots)	comply	
your	insurance	broker	immediately.	Areas	deemed	to	be	‘high-risk,’	such	as	                 with	the	open	pilot	warranties	laid	down	in	our	client’s	insurance	contract.	They	
Sudan,	 Somalia,	 Nigeria	 and	 the	 Democratic	 Republic	 of	 Congo,	 may	 all	            ensure	that	their	clients	have	disclosed	any	incidents	that	they,	or	anyone	else	
attract	varying	additional	costs,	so	it	is	also	important	to	notify	your	broker	            who flies (or may fly) the aircraft, have had in the last five years.
if	you	are	no	longer	operating	in	any	high	risk	areas	for	which	you	may	be	
paying	unnecessary	additional	premium.	                                                     The ‘deductible’ refers to the excess, being the first amount payable in the
                                                                                            event	of	a	claim	being	lodged	against	the	policy	by	the	Insured.	The	amounts	
‘Insured	uses’	refer	to	what	you	are	covered	to	do	in	the	aircraft.	The	standard	           payable	vary	between	insurers	and	additional	deductibles	may	apply.	Has	
uses	are	‘private	business,	pleasure,	advanced	instruction	and	industrial	aid.’	            the	broker	offered	you	the	option	of	insuring	the	deductible?

78       African Pilot	   June	2009