A) History and development of Aviation
It all started when the famous renaissance painter, Leonardo da Vinci developed drawings and sketches of flying devices and believed that human could fly on air one day. That may seem something impossible at that time. But, he designed a human – powered aircraft, Daedalus 88 and flew 115km in 1788. In 1842, Englishman named Henson patented a design for a machine similar to the modern monoplane. A Frenchman, Alphonse Penaud made successful flying models of airplanes while Clement Ader achieved flight over 45m in 1890 and about 280m in 1897. In 1894, Sir Hiram Maxim built a plane in England which was operated by steam engines and carrying three people, it rose into air. Orville and Wilbur Wright flew the first piloted airplane on 17th Dec 1903 off the beach near Kitty Hawk, N.C. In 1909, Henry Bleriot flew across English Tunnel. Ten years later, Glenn Curtis designed flying boat across the Atlantic Ocean. B) History and development of Aviation Insurance
Aviation insurance is insurance coverage designed specifically to the operation of aircraft and the risks involved in aviation industry. Aviation Insurance was first introduced in early 20th Century. The first aviation insurance policy was written by Lloyd's of London in 1911. The company stopped writing aviation policies in 1912 after bad weather and the resulting crashes at an air meet caused losses on many of those first policies. Though, it is believed that the first aviation polices were underwritten by the marine insurance underwriting community. In 1929, the Warsaw convention was signed. The convention was an agreement to establish terms, conditions and limitations of liability for carriage by air, this was the first recognition of the airline industry as we know it today. By 1933, realizing that there should be a specialist industry sector the International Union of Marine Insurance (IUMI) set up an aviation committee and by 1934 eight European aviation insurance companies and pools were formally established and the International Union of Aviation Insurers (IUAI) was born. The London insurance market is still the largest single centre for aviation insurance. The market is made up of the traditional Lloyd's of London syndicates and numerous other traditional insurance markets. Throughout the rest of the world there are national markets established in various countries, this is dependent on the aviation activity within each country, the US has a large percentage of the world's general aviation fleet and has a large established market. No single insurer has the resources to retain a risk the size of a major airline, or even a substantial proportion of such a risk. The disastrous nature of aviation insurance can be measured in the number of losses that have cost insurers hundreds of millions of dollars (Aviation accidents and incidents). Most airlines arrange "fleet policies" to cover all aircraft they own or operate. There are two types of aviation insurance which are:
i. Hull Coverage
Two types are covered under here which are all risks while not in flight and all risks coverage which has its exclusions.
ii. Liability Coverage
There are two types under this category which are bodily injury except passenger liability and passenger liability. Examples of aviation insurance products offered by insurance companies are aircraft insurance, airplane insurance, airport liability coverage, FBO insurance, pilot life insurance, helicopter insurance, airline insurance, general aviation insurance and more.
C) Aviation Industry Market
The aviation Market is constantly undergoing changes as a result of new developments in technology arising from the production of larger and faster aircrafts. The aviation industry market members are as below: i. Clients / buyers
These are the group or organizations that need to buy aviation insurance from the sellers. For example are airlines, operators...