QBE Members Insurance

 

A QUICK TOUR OF THE SAAA QBE AVIATION INSURANCE PROGRAM

Adequate Insurance has long been a difficult problem for owners and builders of recreational aircraft, particularly homebuilt aircraft.  At the same time, this sector represents a significant aircraft population, and one showing strong growth in an otherwise stagnant GA market.

SAAA studies how to make this sector attractive to Insurers.   We proposed a Flight Safety Assistance Program (FSAP), aimed at systematic risk reduction by participants, together with a risk management partnership between SAAA and the Insurer to achieve the safest outcomes.  Throughout their 30 year relationship with the SAAA, QBE has enthusiastically and generously supported this approach.  The SAAA QBE Aviation Insurance Program is the result.

QBE has reviewed the program as of May 2013 and based on our members' performance, further improved the cover, benefits and costs associated with insuring your aircraft through the Flight Safety Assurance Program (FSAP).

These are the elements of the program:

1.      Hull Cover

The Insurance Program covers you through all phases of your project, from the time the kit first arrives, through the construction period, taxi trials, for the first flight and subsequent test flying, and through ongoing operations.  Moreover, you have the options to select either full hull cover or parts-only* cover at each stage.  Table 1 illustrates your hull cover selection options.  Of course if you have a factory built aircraft, or you have a restored aircraft, you can also select the appropriate options.
*See  Appendix 1 – Parts Only Brochure

 

CONSTRUCTION

GROUND only

TAXI
(incl ground)

FLIGHT (Incl flight test, taxi & ground)

FLIGHT (Incl taxi and ground)

PARTS and LABOUR

(not applicable)

Yes/No

Yes/No

Yes/No

Yes/No

PARTS ONLY

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

 

2.      Liability Cover

You can take out cover for third party liability, passenger liability and even your liability to other pilots if you wish.  You can select the amount of cover you consider appropriate, beginning at $1,000,000.  It is wise to take out liability cover, because in the event of an accident, it protects you if you are found to be legally liable.

 

3.      Extra Liability Cover

There are a couple of additional benefits regarding liability which are now automatically included as part of the Insurance Program when you take out Liability Cover.  If you hire or fly another aircraft for recreation whilst your aircraft is insured, there is cover in place should you be legally liable in the event of a claim.

Also included is Premises Liability (Hangar Keepers) up to the limit on your policy.  This covers bodily injury or property damage in or about the premises you own or occupy, or elsewhere in the course of your aviation related operations where you have been found to be legally liable.

4.      Excesses

You will find the excesses applicable to be reasonable and fair, however they do vary with different stages of the FSAP.  For instance, during the first ten flying hours for a homebuilt aircraft or during the initial flight testing. Excesses keep premiums lower by discouraging smaller claims.

 

5.       Mutual Obligation

The program is based on the concept of mutual obligation, whereby you agree to do those things that make you a better insurance risk.    Part of this is that you are required to sign up for, and observe your obligations under the Flight Safety Assistance Program (FSAP).  This program is free to SAAA members.  It is designed to enable you to achieve excellent construction standards, maintenance standards, operational standards and pilot proficiency standards.  The pilot proficiency standards do not yet form part of the Flight Safety Assistance Program, but SAAA is working hard to have this available to you very soon.

6.       Premiums

QBE will assess each proposal independently to establish premiums.  However, the general rating is commensurate with the most favourable rate for similar commercially certified aircraft.  This is a huge vote of confidence by QBE in the skill, attitude and airmanship of our members who accept their mutual obligation.  As the SAAA and QBE will be continually monitoring the “loss ratio” of the program, we can and have seen even lower premiums if we achieve even better levels of safe operation.  The following table is indicative of the savings available, when compared with a non-member, all else being equal.

Example of rating (Indicative only)
Assumption: Sole Pilot Owner with 200 hours experience (50 hours Make and Model), maximum FSAP eligibility, $2,000,000 Combined Single Limit of Liability.

 

PROGRAM

COVER TYPE

COVER VALUE

DISCOUNT

Full
Flight Risk

Non SAAA member

Full Flight Risk
(Parts & Labour)

$100,000

-

SAAA / FSAP Member

Full Flight Risk
(Parts & Labour)

$100,000

23%

SAAA / FSAP Member

Full Flight Risk
(Parts Only)

$70,000

50%

Ground Risk

Non SAAA member

Ground Only
(Parts & Labour)

$100,000

-

SAAA / FSAP Member

Ground Only
(Parts & Labour)

$100,000

50%

SAAA / FSAP Member

Ground Only
(Parts Only)

$70,000

65%

“Actual premium payable will depend on individual circumstances and of course premium rates are subject to change”