Insurance woes

[Russ]

Yet another fellow aviator tells me his "insurer" has advised him his policy will not be renewed when it falls due.

 

The guy has never made a claim, ever, but his plea has fallen on deaf ears.

 

Another chap told me some time back, he too had a battle, in the end the insurer agreed to renew, but the premium was about 20% of the crafts valuation.

 

The apparant trend by insurers to target recreational folks is disturbing, especially when the stats just don't stack up to support their actions.

 

Sourcing cover outside of oz, is very possible, but i hear it could backfire when oz laws etc are called into play. :confused::confused:

 

Maybe.............if all aviators, i mean ALL rec aviators, banded together, and presented a case, the numbers then just might get some clout.

 

Tiz a worry.......

 

 

[Guest ozzie]

Seems that this is a continuing problem that has been growing like your premiums have over the years. there is no real reason for recreational pilots to be singled out for this treatment. I do not think it is because there is a larger number of claims compared to earlier times. does the broker give any reason for this. has the insured made claims or had refusals in other areas?

 

If this is a backlash on just recreational aircraft or is it a real problem in GA as well? As for banding together, we have, under the flag of the RAAus. Illustrius Leaders may need another poke as per the third party policy some time back to help address this problem.

 

 

[Spin]

It's probably got very little to do with claims experience; insuring recreational aircraft is considered a specialist field and a small market at that. I wouldn't be suprised if most of the local business was being funneled to only one or two underwriters and if these decide to alter the type of business thay are accepting, then it is suddenly going to become difficult for brokers to place the business. There is also a perception that the risk in insuring toys like boats, planes, motor cycles etc increases as times get harder - there always being a temptation for an otherwise unsaleable item to suffer some sort of irreparable harm that results in a cash payout.:ah_oh:

 

As far as overseas insurers go, I suspect that most of this sort of business is underwritten overseas anyway, they have more insurers who are prepared to take on niche markets with specialised underwriting skills.

 

 

[jetjr]

Australian insurance laws require a certain volume of risk security be based here. This rules out many specialised insurers from overseas.

 

My broker has no trouble finding insurance but RAA do seem to pay a serious premium.

 

Higher experience/hours and no cross hire are part of the deal

 

I agree RAA needs to try to educate Insurers (and finance Co's) as to attractive side of the sector.

 

 

[Guest eland2705]

motorcycles are no different.

 

Apparently if you ride or fly you're are a "hoon" and a liability.

 

 

[Derby]

has anyone tried QBE, that's who I use, I find them to be good. But it"s through the saaa.

 

Rory

 

 

[Guest ozzie]

Read recently that in NSW motorcycles just had a 300% increase in green slip premiums due to a higher rate of accidents, this i belive is due to the recent popularity of scooters.

 

I personally belive that insurance companies had a big hit in the recent GFC when their investments did a big dive. To build the pot back up, guess who pays for it? And they would probably try and reduce their percieved higher risk claims as well.

 

 

[Russ]

Idea......................self, inhouse insurance...............WTF

 

RAA, puts in place "their own" insurance cover for ALL MEMBERS........every member pays an additional $$$$ that is then dedicated to the insurance fund, with the numbers here of members, it would quickly build up to a sizeable amount, and snowball further with good returns from any banking company.

 

This "insurance fee" would be compulsory as part of membership, maybe a "cap" could be placed to "payout", perhaps 50 % of valuation...........this is far better than zero, that most folks now get ( not insured )

 

Just tossing an idea here folks...........try to think HOW this could be done..........not how it can't be done.

 

back under me rock now................

 

 

[Yenn]

Russ. Not a bad idea, but only 50% would I think be a bit of a problem. I for one would want 100% coverage and consider 50% not much better than no insurance. I wonder how many planes there are involved and what their value would be. Surely if one insurance company had all the planes they could make a profit at a reasonable premium per $1000 value. I know we have a fairly good safety record as far as fatalities go, but the payouts would be for tailwheel damage and running off runways rather than complete write offs.

 

 

[HEON]

Have always insured but now questioning it as I now own multible aircraft, with one a amphibian that costs heaps. Have moved some to "ground cover" only as the bill was getting out of hand.

 

Amount per year that was due can cover a lot of non total damage.

 

A bit like a BRS...if the wing falls of you would be an instant convert to both full insurance and a BRS...but would it rearly matter?(to you!)

 

 

[Guest ozzie]

The EAA has long recognised this problem and has it sorted out. Maybe the RAAus could benifit from their experience or maybe you do not have to reside in the USA to take advantge of it.

 

I do not need insurance, the low cost to replace mine would not make it worth while, nor do i see 3rd party being a real issue for me either.

 

EAA - Aircraft Insurance

 

 

[Guest Maj Millard]

I have been with QBE for the last two years, as I was told that if there is a claim, they do pay. This came from some pilots (GA and Glider) who had experienced this first hand, after incidences they had, requiring repairs to their aircraft.

 

I did however just renew with another company, CAI which I sourced from the magazine. I requested three quotes including QBE, and CAI were the ones who worked the hardest for the money , so they got it this time.

 

I can't say anything bad about QBE, and I may use them again in the future............................Maj...

 

 

[bushpilot]

has anyone tried QBE, that's who I use, I find them to be good. But it"s through the saaa.Rory

We have our 3 aircraft insured with QBE. They are always reasonable in their premium quotes and give no claim discounts.

 

One of our RAA friends here in Bathurst took out a cover note with QBE on buying a new a/c recently; he crash landed on the ferry flight and even though he hadnt paid the premium at that stage, QBE paid the $35,000 claim quickly and without question.

 

 

[Bill Hamilton]

Folks,

 

Insurance is about to get a whole lot harder, if the White Paper recommendations are followed. If the Labor government is returned, they will be, there is no saying a change would see the present new insurance regulations canceled.

 

The proposal is for compulsory third party personal and property insurance to a much higher level than the present normal limits of QBE and Vero ---- if they will offer cover at all.

 

Regards,