Rand-nosediving-questionmark

The continuing weakness of the SA Rand leaves many aircraft owners exposed to the dangers of under-insurance.  Aviation insurance is not generally subject tot the principle of Average.  Most aircraft are insured on an Agreed Value basis.  Being under-insured may result in what is called a “Constructive Total Loss” being declared where the aircraft has suffered only moderate damage, resulting in the payment of the Agreed Value whilst the Insurers become entitled to take the aircraft as salvage.  Be aware of the current value of your aircraft and adjust your sum insured as required.  You may also consider fixing your sum insured in a hard currency – such as US Dollars or Euros, depending on where the aircraft is manufactured – as this will create an automatic currency hedge.  Such an approach is particularly recommended for owners of turbine, jet or turboprop-engined aircraft.  Discuss the options with your DJA representative.