The purpose of this article is to draw attention to some frequent misconceptions concerning the nature and extent of liability insurance cover commonly purchased by the operators of European light aircraft. The issues raised are discussed primarily in the United Kingdom context, although since many aviation policies are standard throughout large areas of the world the lessons to be drawn are of more general application.

When a fatal accident occurs to a light aircraft those acting for the families of deceased passengers instinctively and understandably are quick to enquire whether “the aircraft was insured”. What is, however, both remarkable and unjustified is the relaxed confidence which an affirmative answer to this simplistic and ambiguous question can engender. If it becomes known, for example, that an aircraft was insured for, say £41,000 per passenger seat, assumptions are made that this sum will be paid in respect of death on a near-automatic basis.

The attitude is remarkable in the first instance, since it often conceals a surprising confusion in the minds of passengers or their legal advisers as to the distinction between personal accident insurance and liability insurance. The personal accident policy under which a specified sum is automatically paid on the happening of any event such as death to a passenger in an identified conveyance is rare in general aviation (except in certain Continental European countries for reasons to be touched on later). Almost invariably, the nature of passenger cover is liability insurance which, of course, necessitates that negligence or some other basis for a cause of action can be substantiated. (In the U.K. aircraft operators are absolutely liable without proof of negligence for damage caused to third parties on the ground. However, with respect to passengers not carried for reward when statutory strict liability based on the Warsaw Convention applies ordinary common law principles will govern.)

While an aircraft accident may in the absence of clear evidence as to cause be a proper event for the application of the res ipsa loquitur rule against its operator (that is, negligence will be assumed from the facts unless the contrary is proven) the complex variety of factors that can give rise to an accident may not point clearly to liability on the part of the party which insured the aircraft. For example, if a private owner with