Two Nigerian underwriters of aviation insurance, Consolidated Hallmark Insurance and NICON Insurance have solicited improved synergy between the insurance and aviation sectors stating that getting it right will provide a win-win partnership for insurers and airline operators.
Speaking yesterday at the Aviation Round Table (ART) Breakfast Meeting at the Gulfview Hotel and Suites in Ikeja, both insurance companies in their own way explained how to grow the partnership and avoid some of the pitfalls.
First up, Managing Director of Consolidated Hallmark Insurance Plc, Eddy Efekoha, who gave a presentation titled Regulation and Aviation Insurance said that complying with the rules including on time payment of premiums will ease indemnity should there be risk.
He said that the company currently leads in 12 aviation insurance policies and co-insure another 36 with a gross aviation premium income of N17billion in 2015.
He said that the numerous plane crashes in the past, business interruption and supply chain risk exposure necessitates the need for regulation as well as aviation insurance in the industry.
He listed policies for the sector to include aircraft hull, passengers, aviation third party as well as excess liability also included are aircraft hull war, aviation refuelling; hanger keepers liability and airport operator liability.
He further stated,” In accordance with the Civil Aviation Act 2006, every airline Operator providing air transport services for hire and reward, must have adequate Insurance for passengers/cargo and third party. The insurance must be sufficient to pay compensation of $100,000.00 USD (one hundred thousand US Dollars) per passenger in case of death or injury.
In his paper, same title, the Managing Director of NICON Insurance represented by Vincent Okomayin stated that the primary responsibility of both local and international regulation is to ensure safety of life and property of passengers/ third party, saying that the role of airline operators in aviation insurance is to provide adequate and reliable insurance cover.
He said that NICON started aviation insurance in Nigeria and was the sole indigenous insurer of the now defunct national carrier, Nigeria Airways for a couple of years, bring to bear a wealth of experience in aviation insurance.
According to Okomayin, for smooth synergy airlines are supposed to provide relevant information about the subject matter of insurance from insurance, request adequate cover as well as ensure timely payment of premium as at when due to forestall a situation where the insurance industry would have to pay claims despite delay in premium payment.
He also called on airline to comply with safety regulations under ICAO and the NCAA stating that on the part of the Insurance regulator, National Insurance Commission (NAICOM), they would ensure the scope of policies issued by the insurance sector is enough to provide the required support in the event of a mishap.
“Airline operators are advised to ensure that all aspects of their operations are adequately insured to guarantee uninterrupted usage of vital international tool of commerce,” he said.