AVN 47

Insurers, agree with the Insured named in the Schedule hereto, in consideration of the payment of the premium, and in reliance upon the statements in the Schedule hereto:-

1. Subject to the terms, conditions, exclusions and limits hereof Insurers will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay as compensation (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or non-fatal) or accidental physical damage to or destruction of property (including animals) caused by the Noise of an identified Aircraft as specified in the Schedule hereto.
Coverage
As used herein:

‘‘Noise’’ includes vibration, sonic boom and any phenomena associated therewith.

2. (a) Insurers shall not be required to defend claims made against the Insured but may at their own Option and expense (in addition to any amounts paid in accordance with Paragraph 1) investigate, defend, compromise and settle in the name of and on behalf of the Insured any claims covered by Paragraph 1 and, to the extent hereby provided, may also act as aforesaid in relation to any uninsured claims when combined with any claims covered by Paragraph 1. Notwithstanding any exercise of their Option as aforesaid, Insurers shall only be responsible for that part of any sums paid as compensation which is in accordance with Paragraph 1.
Insurers’
Option to Defend
(b) As soon as practicable following the receipt of Notice from the Insured in accordance with Paragraph 7 Insurers shall advise the Insured whether they wish to exercise their Option, and in any event not later than 60 days after Insurers have received a copy of any Writ, Summons or Complaint or other document commencing legal proceedings against the Insured in respect of Aircraft Noise. If Insurers advise the Insured that they do not wish to exercise their Option as aforesaid thereafter Insurers may only exercise the said Option with the consent of the Insured.

3. If Insurers do not exercise their Option, they shall contribute in the proportion specified below to the Insured’s costs and expenses necessarily incurred for the purposes of investigation, defence, settlement, trial or appeal in relation to Aircraft Noise claims:
Contribution to Insured’s costs and expenses
Insurers’ Contribution

= The total paid by Insurers as compensation in
Accordance with paragraph 1

The total paid by or on behalf of the Insured as compensation howsoever arising in respect of Aircraft Noise


x
The Insured’s costs and expenses as aforesaid
The Insured’s costs and expenses as aforesaid shall not include wages or salary of directors, partners or employees of the Insured.


AVN 47 1.10.96

Any contribution by Insurers as aforesaid shall be in addition to any sums paid in accordance with Paragraph 1 subject to an aggregate annual limit as shown in Item 8 of the Schedule.

4. The Insured shall contribute ten per cent (10%) towards all claims paid under this Policy, including the allocated claims expense therefor under paragraphs 2(a) and 3. The Insurers may pay any part or all of the named Insured’s contribution in order to effect settlement of any claim or suit and upon notice to the named Insured, the named Insured shall reimburse the Insurers for such part of the Insured’s contribution as has been paid by the Insurers.
Insured’s Contribution
5. THIS POLICY DOES NOT APPLY
Exclusions
(a) to claims arising out of or in any way connected with nuisance and/or compensation for the taking, use of or acquisition of rights to property or airspace and/or any other direct or indirect consequences of Aircraft Noise except to the extent provided by Paragraph 1

(b) to any liability which arises solely by reason of any contract or agreement entered into by or on behalf of the Insured even if such contract or agreement has been noted by Insurers

(c) to claims by or in respect of any person or property on board the Aircraft, or any property owned, rented, occupied or used by or in the care, custody or control of the Insured

(d) while the Aircraft is being used for any unlawful purpose, or any purpose not specified in Item 4 of the Schedule hereto

(e) while outside the geographical limits specified in Item 5 of the Schedule hereto unless due to force majeure

(f) while the Aircraft is operated by anyone other than the Pilot(s) specified in Item 6 of the Schedule hereto.

6.

This Policy does not cover claims directly or indirectly occasioned by happening through or in consequence of:-

(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.
War, hi-jacking and other perils exclusions
(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(c) Strikes, riots, civil commotions or labour disturbances.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.





(e)

Any malicious act or act of sabotage.

(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.

(h) The Aircraft being outside the control of the Insured by reason of a peril excluded by paragraphs (f) or (g).

7. (a) The Insured shall give immediate Notice to Insurers (as specified in Item 9 of the Schedule hereto) of the following:
Claims Procedure
(i) any claims covered by this Policy

(ii) any events, documents or communications likely to give rise to such claims

and, without any admission of liability, shall forthwith take such steps as may be reasonable and necessary to investigate, mitigate and defend claims and, unless Insurers exercise their Option, shall thereafter send to Insurers regular reports of progress in the aforesaid matters.

(b) The Insured shall not, without the consent of Insurers, compromise or settle any claim covered by Paragraph 1 or any such claim when combined with any uninsured claim.

(c) The Insured shall be responsible for

(i) The maintenance, and production for inspection by Insurers, of comprehensive and accurate records and accounts of all matters relevant to this Policy; in particular, if Insurers do not exercise their Option, the Insured shall maintain and produce such records and accounts as will enable Insurers to determine that part of any sums paid as compensation which is covered by Paragraph 1 and that proportion of the Insured’s costs and expenses which is covered by Paragraph 3.

(ii) Ensuring that employees, lawyers, adjusters and other agents of the Insured are given suitable instructions in relation to the maintenance and production of records and accounts as aforesaid.

8. WARRANTED that in relation to Warranty
(i) the control and minimisation of Noise and
(ii) airworthiness, operation, maintenance and repair of aircraft

The Insured will take all reasonable steps to ensure that the Aircraft and all those engaged in its operation and maintenance will

(a) comply with any applicable Laws and Regulations (including any rules and instructions of airport, Air Traffic Control and airworthiness authorities) and

(b) follow any applicable instructions or recommendations of Aircraft, Engine and Operational Equipment designers and manufacturers.

9. (i) Insurers’ liability shall not exceed the limits specified in Item 8 of the Schedule hereto. General
Conditions

(ii) Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise, the total liability of Insurers in respect of any or all Insureds shall not exceed the amounts specified in Item 8 of the Schedule hereto.

(iii) If the risk covered herein is insured by, or would, but for the existence of this Policy, be insured by any other policy or policies, then this Policy shall only pay in excess of any amount which is or would have been payable under such other policy or policies.

(iv) The due observance and fulfilment of the terms provisions, conditions and endorsements of this Policy shall be conditions precedent to any liability of the Insurers to make any payment under this Policy.

(v) If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise this Policy shall become void and all claims thereunder shall be forfeited.

(vi) Should there be any change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers.

(vii) This Policy may be cancelled at any time by the Insurers giving 10 days’ notice in writing of such cancellation. In such event the Insurers will return in respect of the unexpired period a pro rata portion of the premium.

(viii) This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon.

(ix) All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not

agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Insurers. If the Insurers shall disclaim liability to the Insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. Unless otherwise mutually agreed between the parties such arbitration shall take place in London.








THE SCHEDULE


PREMIUM.......................................................... POLICY NO. ..........................................

1. Name of Insured

2. Address

3. Period of Insurance

4. Purposes for which Aircraft may be used

5. Geographical Limits

6. Pilots

7. Aircraft Insured hereby:-

(a) Manufacturer

(b) Model designation

(c) Registration Marks

8. Limits of Insurers’ Liability

The Liability of Insurers shall not exceed the following amounts:-

...................................... any one Aircraft any one occurrence but not exceeding

...................................... in the aggregate during any one Policy year

9. Notice to Insurers

Notice to Insurers in accordance with Paragraph 7 shall be given to:-


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AVN 47 1.10.96