There’s No Place Like Home!

When arranging your insurance, you told your Insurers that your aircraft was based at Lanseria. Your policy provided a geographical area of coverage described as “Africa, south of the equator”. Permitted Uses included commercial passenger transport operations.

A few months into your policy, you obtained a lucrative contract to base and operate the aircraft in Mozambique for a two-month period. A quick look at your insurance contract confirmed that Mozambique was included within your geographical area of coverage and so you sent the aircraft off to Mozambique without another thought.

Are you covered?

The place where an aircraft is to be based is considered “material” information by most Insurers. Your Insurer was told your aircraft was to be based at Lanseria. Consequently, your Insurer will anticipate that flights will, generally-speaking, commence at Lanseria and that your aircraft, when not on an extended away trip, will sleep at Lanseria as well.

The perceived risk may change (=increase) once the base of an aircraft changes, especially to a new base outside South Africa. Lack of infrastructure, availability of fuel, cost of recovery in the event of a loss, political instability, lack of or limited regulation of ATC all play a part in an Insurer’s assessment of its exposure to loss.

It is therefore imperative that any intention to change the declared base of your aircraft, particularly if it will now be based outside South Africa<, be advised to your Insurers. Failure to do so may result in your coverage being unnecessarily prejudiced.

If you are in any doubt, speak to your insurance broker and take the advice offered.