The following Banking & Finance guidance note Produced in partnership with Norton Rose Fulbright provides comprehensive and up to date legal information covering:
Aircraft are high value assets, prone to damage and capable of causing destruction. Appropriate insurance coverage is a vital concern for financiers and the contents of the policies and their legal effect is an area where more attention is required than may be the case in other types of asset finance.
See also Practice Note: Typical features of an aviation insurance policy.
A contract of insurance is a contract of indemnity for loss arising as a consequence of a specified peril (eg, the loss caused by the damage or destruction of the insured asset). The contract is constituted between the insurer, the insured and any other additional named insured parties. It differs from other contracts in that it is based on the principle of utmost good faith (uberrimae fidei). Under English law, an absence of utmost good faith traditionally resulted in the contract being void from the start. In some overseas jurisdictions, the insurance contracts are deemed to be voidable at the insurer’s instigation; there is little practical difference between these two outcomes.
However, the regime under the Insurance Act 2015, which came into force in the UK in August 2016 and applies to insurance contracts governed by the laws of England, Wales, Scotland or Northern Ireland, is less draconian and perceived to favour the insured more.
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