What Is Aviation War Risks Insurance?
Aviation war risks insurance deals, in a separate cover structure, with the war and allied perils that are removed from aircraft hull all risks and aviation liability policies by a war exclusion. In the market it has two main parts: Hull War for physical damage to the aircraft, and Aviation War Liability for third-party and passenger losses arising from a war or terrorism event.
Hull and general liability cover are explained on the Aviation Insurance page; this page deals only with how war and allied perils are separated out and how they are covered back. War and strikes clauses for cargo are a separate subject: Marine Cargo War and Strikes Insurance. This page is general information; it does not imply the scope, acceptance, price or any payment guarantee of a particular policy.
The War and Other Perils Exclusion in Main Policies
In aviation policies, war and allied perils are removed from the main policy by an exclusion that is widely handled in the market through the AVN 48B clause family (the war, hi-jacking and other perils exclusion; later editions are known as AVN 48C and AVN 48D). The exclusion is wider than the clause title suggests; which edition is used and how the definitions are written should be confirmed at quotation stage. The excluded perils generally include:
- War and conflict: war, invasion, civil war, rebellion and revolution, usurped power
- Political and social events: strikes, riots and civil commotion
- Intentional acts: acts of terrorism, sabotage and malicious damage
- Unlawful interference with the aircraft: hijacking and unlawful seizure
- Official acts: confiscation, nationalisation, seizure and requisition
Nuclear risks are generally subject to a separate exclusion (the nuclear risks exclusion known in the market as the AVN 38B family); the scope on this point should be confirmed from the policy. This page is not clause text; exact scope, edition and definitions must be read from the policy itself.
Hull War: Physical Damage to the Aircraft
Hull War is a separate policy dealing with physical loss of or damage to the aircraft from war and allied perils; it is built on the same value and interest structure as hull all risks. The basic war exclusion and cover-back table for hull all risks and Hull War, and the explanation of the hull war schedule (restricted areas), are on the Aviation Insurance page and are not repeated here. A Hull War policy is also read for:
- Scope limits and sublimits: under what conditions and with what sublimit perils such as hijacking, confiscation or terrorism are included
- Duration and cancellation: notice and automatic termination provisions in war policies may differ from the main policy; short-notice cancellation and termination on specified events should be read
- Restricted areas: whether prior notification, additional premium or approval is required to enter an area
- Spares and equipment: whether engines and spares are included in the war cover
- Value and interested parties: notice and payment provisions of the war policy for financiers and lessors; see the leasing and financing explanation on Aviation Insurance
Hull War is generally placed separately in the international market; this sentence does not imply the capacity of any particular insurer or acceptance of cover.
Aviation War Liability: Third-Party and Passenger Losses
Hull War deals with the aircraft's own damage. Liability for losses caused to third parties, passengers, baggage and cargo during a war or terrorism event must be structured separately, because the war exclusion in liability policies also takes these losses outside cover. In the market this gap is generally dealt with through war extensions added to the liability policy (AVN 52E and similar extended coverage endorsements) or through a separate war liability structure. Points to watch:
- Sublimit: war and terrorism extensions are often given with a separate limit below the main liability limit and with an annual aggregate
- Clause edition: AVN 52E is an extension that, under certain conditions, covers back liabilities excluded by the AVN 48B family; it does not replace a hull war policy, and each policy's own text must be reviewed separately
- Cancellation notice: the extension may be cancellable on shorter notice than the main policy, or may not be renewed
- Passenger vs third-party split: the war cover for passenger liability and for ground third-party liability may be subject to separate provisions
An airport operator's liability arising from war and terrorism is a separate risk group; see Airport Operators Liability Insurance.
Compulsory Insurance and War Risks in Türkiye
In Türkiye, compulsory aviation liability insurance is governed by two separate regulations. Both were published in the Official Gazette of 27/7/2017, no. 30136, and both bring war and terrorism risks within the compulsory cover. They are separate from the hull or Hull War insurance that deals with the aircraft's own physical damage.
- Passenger, baggage, cargo and mail liability: the "Regulation on Passenger, Baggage, Cargo and Mail Financial Liability Insurance for Aircraft Operating in Türkiye" (basis: Law no. 4059 Art. 8, Law no. 2920 Art. 132, Law no. 5431 Art. 4; amended by the Official Gazette of 6/12/2019, no. 30970, in force from 28/12/2019). The party obliged is the carrier licensed to carry passengers, cargo and mail (Art. 4(1)(ğ)). The insurance covers the carrier's legal liability for passengers, baggage, cargo, mail and delay (Art. 2(1)). The carrier must take out insurance against these liabilities so as also to cover war, terrorism, hijacking, sabotage, unlawful seizure and civil commotion risks (Art. 6(1)); indirect losses, including loss of profit and loss of labour, are outside cover (Art. 6(2)). Minimum cover is set in Art. 8; for death or bodily injury of a passenger it is 250,000 SDR per passenger (Art. 8(1)(a)). Separate amounts apply to non-commercial flights of aircraft with a maximum take-off mass below 2,700 kg, and to delay, baggage, and cargo and mail. The definition of passenger does not include flight and cabin crew (Art. 4(1)(ı)).
- Third-party liability: the "Regulation on Third-Party Financial Liability Insurance for Civil Aircraft" (basis: Law no. 4059 Art. 8, Law no. 2920 Arts. 138, 139 and 140, Law no. 5431 Art. 4). The party obliged is the operator (Art. 4(1)(d)); the regulation applies to the operators of registered aircraft and unmanned aircraft and of foreign-registered aircraft using Turkish airports or airspace (Art. 5(2)). Operators must take out insurance against their liability for loss caused to third parties so as also to cover war, terrorism, hijacking, sabotage, unlawful seizure and civil commotion risks (Art. 6(1)); indirect losses, including loss of profit and loss of rent, are outside cover (Art. 6(2)). Minimum cover is tied to a ten-category table by maximum take-off mass, per aircraft and per occurrence, applied with percentages according to type of use (Art. 8).
- The exceptions are set out separately in each regulation and must not be generalised from one to the other. In the passenger, baggage, cargo and mail regulation: state aircraft (Art. 2(2)(a)) and aircraft used for forest fire fighting and agricultural spraying (Art. 2(2)(b)) are outside the regulation; only as regards war and terrorism risks, balloons, gliders and very light aircraft used on flights within the country made for non-commercial purposes to give flight training by authorised persons, provided international borders are not breached, are also outside it (Art. 2(2)(c)). In the third-party regulation: state aircraft (Art. 5(3)(a)) and aircraft that can take off and land by foot power, namely hang gliders and paragliders (Art. 5(3)(b)) are outside the regulation; only as regards the insurance obligations relating to war and terrorism risks, aircraft with a maximum take-off mass below 500 kg, gliders included, used on flights within the country made for non-commercial purposes to give flight training by authorised persons, provided international borders are not breached, are also outside it (Art. 5(3)(c)). The war and terrorism exceptions do not remove the other insurance obligations for those aircraft.
Hull War is not compulsory. The regulation texts above do not impose an obligation to take out hull or Hull War insurance covering the aircraft's own damage; the war and terrorism cover within the compulsory insurances relates to passenger, baggage, cargo, mail and third-party liability. Hull and Hull War cover is voluntary and may arise separately from the insured's own decision or from financing and leasing contracts. Which policy structure is sufficient for the compulsory insurance, the minimum amounts, and the proof and insurer notification obligations to SHGM (passenger regulation Art. 7, third-party regulation Art. 7) should be confirmed at placement stage from the relevant text and the insurer.
Sanctions and Embargo Provisions
Aviation policies may contain sanctions and embargo provisions, either through sanctions limitation and exclusion clauses known in the market under clause names such as AVN 111, or through an insurer's own sanctions wording. These may limit cover or payment of claims for flights and payments involving certain countries, persons or entities. The legal basis of the sanctions regime (for example the US, EU or UN) and the parties in the reinsurance structure affect compliance risk. The clause text, edition and effect should be confirmed from the policy; this page does not explain the result of any particular sanctions regime.
How Do Hull All Risks, Hull War and Liability Cover Differ?
The table below shows in general terms how each policy deals with war and allied perils; the final result depends on the policy wording.
Scroll the table horizontally to see all columns.
| War and allied perils | Point to watch | |
|---|---|---|
| Hull all risks | Physical damage to the aircraft. War and allied perils excluded (AVN 48B family) | The war gap is dealt with by a separate policy |
| Hull War (voluntary) | Physical damage to the aircraft from war and allied perils. War, terrorism, hijacking and confiscation perils as defined in the policy | Not compulsory under the regulations; area and cancellation provisions, sublimits |
| Liability (CSL) | Third-party and passenger liability. War exclusion applies | Without an extension, war-caused loss falls outside cover |
| War liability extension (AVN 52E type) | War and terrorism cover added to the liability policy. Covered back under certain conditions | Often a sublimit and short cancellation notice |
| Compulsory passenger, baggage, cargo and mail liability insurance (carrier) | The carrier's liability for passengers, baggage, cargo, mail and delay. The regulation provides that war and terrorism risks are also covered (Art. 6) | Does not cover the aircraft's own damage; minimum amount and exceptions confirmed from the official text |
| Compulsory third-party liability insurance (operator) | The operator's liability for loss caused to third parties. The regulation provides that war and terrorism risks are also covered (Art. 6) | Does not cover the aircraft's own damage; minimum amount depends on maximum take-off mass |
What Information Is Needed for a Quotation?
- Aircraft type, number and value, and existing hull and liability policies
- Type of operation (scheduled, charter, cargo, private) and areas flown; plans to enter restricted areas
- Requested war liability limit and any existing extension cover
- Financiers and lessors and the insurance requirements in their contracts
- Information on flights to, or payment flows involving, sanctioned countries
- Loss history and existing exclusions
This list is an example; the information and documents requested vary by insurer and policy structure. Acceptance, requests for further information and terms rest with the relevant insurer.
Frequently Asked Questions
What is Hull War and how does it differ from hull all risks?
Why is Aviation War Liability assessed separately?
What does AVN 48B mean?
Is insurance for war and terrorism risks compulsory in Türkiye?
Does Regulation 785/2004 of the EU apply in Türkiye?
How do sanctions and embargo provisions affect a war policy?
Is aviation war insurance the same as marine cargo war and strikes insurance?
Neolife's Role
Neolife Group can assess the relevant information and contracts, explore suitable local insurance and reinsurance solutions, carry out placement work and compare the quotations received. This does not imply the capacity of any particular insurer or reinsurer, acceptance of cover, price or any commitment to pay; these are subject to the rules of the relevant insurer, to legislation and to the policy terms.