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AVIATION MANUFACTURERS PRODUCT LIABILITIES ENDORSEMENT

1.   The Policy includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B),
     but it is NOW AGREED THAT in consideration of an Additional Premium of [              ] the
     coverage provided by the Policy shall, with effect from [  ], be subject to this Endorsement.

2.   COVERAGE
     All sub-paragraphs other than [       ] of Clause AVN 48B are deleted with respect to the legal
     liability of [   ]/the Insured arising out of the Products Hazard as insured in the Policy.

3.   EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph
     (a) of Clause AVN 48B.

     Cover shall not include liability for damage to any form of property on the ground situated
     outside Canada and the United States of America unless caused by or arising out of the use of
     aircraft.

4.   LIMITATION OF LIABILITY

     The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be
     [     ] any one Occurrence and [           ] in the annual aggregate. This limit shall apply within
     and not in addition to the full Policy limit.

5.   AUTOMATIC TERMINATION

     To the extent provided below, cover under this Endorsement shall TERMINATE
     AUTOMATICALLY in the following circumstances:

     (i)      All cover
              - upon the outbreak of war (whether there be a declaration of war or not) between any
              two or more of the following States, namely, France, the People’s Republic of China, the
              Russian Federation, the United Kingdom, the United States of America

     (ii)     Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
              - upon the hostile detonation of any weapon of war employing atomic or nuclear fission
              and/or fusion or other like reaction or radioactive force or matter wheresoever or
              whensoever such detonation may occur

     PROVIDED THAT if an aircraft is in the air when (i) or (ii) occurs, then the cover provided by
     this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect
     of such an aircraft until completion of its first landing thereafter and any passengers have
     disembarked.

6.   CANCELLATION


     (a)      Limited Cancellation (48 hours)
              Following a hostile detonation as specified in 5 (ii) above, Insurers may give notice of
              cancellation of one or more parts of the cover provided by this Endorsement by
              reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice
              to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day
              on which notice is given.

     (b)      Cancellation (7 days)
              The cover provided by this Endorsement may be cancelled by either Insurers or the
              Insured giving notice to become effective on the expiry of seven days from 23.59 hours
              GMT on the day on which such notice is given.
(c)     Notices
                All notices shall be in writing.

7.      This Endorsement is part of Policy No [      ] and is otherwise subject to all terms and
        conditions of that Policy. Terms defined in the Policy have the same meaning in this
        Endorsement.


AVN 52P 27.02.06

This clause is published by AICG, but it is expressly not intended to be binding on any market
participant. AICG makes no recommendation as to its use in particular policies and recognises that all
underwriters are free to offer different policy wordings to their policyholders


NOTES

These notes do not form part of AVN 52P. They are intended to clarify the background to the clause and
further to comment on a drafting issue as an aid to interpretation.

1.    BACKGROUND NOTE
      The limited write-back clause was drafted at the request of Global Aerospace with support from
      the Aviation Working Group and LMBC. Changes to the original draft were made following
      publication of amended draft for consultation. The clause is intended to apply to policies issued
      to aviation manufacturers only, and not to other policies providing coverage for product exposure.

2.    DRAFTING NOTE
      A number of “blanks” have been inserted for completion by the underwriter and/or the broker.
      These are largely self explanatory except in Para 2 – where the intention is that this should be
      completed in respect of any relevant parts of the Insured where a policy may include multiple
      names or alternatively just the Insured.

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Avn 52 p aviation manufacturers product liabilities endorsement

  • 1. AVIATION MANUFACTURERS PRODUCT LIABILITIES ENDORSEMENT 1. The Policy includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), but it is NOW AGREED THAT in consideration of an Additional Premium of [ ] the coverage provided by the Policy shall, with effect from [ ], be subject to this Endorsement. 2. COVERAGE All sub-paragraphs other than [ ] of Clause AVN 48B are deleted with respect to the legal liability of [ ]/the Insured arising out of the Products Hazard as insured in the Policy. 3. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B. Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft. 4. LIMITATION OF LIABILITY The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be [ ] any one Occurrence and [ ] in the annual aggregate. This limit shall apply within and not in addition to the full Policy limit. 5. AUTOMATIC TERMINATION To the extent provided below, cover under this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances: (i) All cover - upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America (ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B - upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur PROVIDED THAT if an aircraft is in the air when (i) or (ii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an aircraft until completion of its first landing thereafter and any passengers have disembarked. 6. CANCELLATION (a) Limited Cancellation (48 hours) Following a hostile detonation as specified in 5 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given. (b) Cancellation (7 days) The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.
  • 2. (c) Notices All notices shall be in writing. 7. This Endorsement is part of Policy No [ ] and is otherwise subject to all terms and conditions of that Policy. Terms defined in the Policy have the same meaning in this Endorsement. AVN 52P 27.02.06 This clause is published by AICG, but it is expressly not intended to be binding on any market participant. AICG makes no recommendation as to its use in particular policies and recognises that all underwriters are free to offer different policy wordings to their policyholders NOTES These notes do not form part of AVN 52P. They are intended to clarify the background to the clause and further to comment on a drafting issue as an aid to interpretation. 1. BACKGROUND NOTE The limited write-back clause was drafted at the request of Global Aerospace with support from the Aviation Working Group and LMBC. Changes to the original draft were made following publication of amended draft for consultation. The clause is intended to apply to policies issued to aviation manufacturers only, and not to other policies providing coverage for product exposure. 2. DRAFTING NOTE A number of “blanks” have been inserted for completion by the underwriter and/or the broker. These are largely self explanatory except in Para 2 – where the intention is that this should be completed in respect of any relevant parts of the Insured where a policy may include multiple names or alternatively just the Insured.