The exponential growth of domestic and international business aviation in Türkiye has led local aviation authorities to create new insurance requirements for flights arriving in the country. Along those lines, new rules on Türkiye’s private aircraft insurance requirements come with new liability limits that all operators must abide by.
In this blog, we discuss the latest private jet insurance mandates in Türkiye, including passenger liability, baggage cover, third-party liability, and how to be compliant. We also illustrate how the amendments impact private flying operators, aircraft owners, and charter firms.
Understanding private jet insurance in Türkiye
Private air operators in Türkiye have to follow some liability insurance rules, including for passengers, baggage, cargo, and third-party risks. These regulations stipulate a minimum level of liability to be met by all operators.
1. Passenger Liability Cover
Private aviation insurance in Türkiye is also obligated by the new law to cover passengers’ death or injury with a minimum of 250,000 SDR (Special Drawing Rights) of cover per passenger. SDRs are foreign exchange reserves used by the International Monetary Fund (IMF) for pegging exchange rates.
2. Baggage and Cargo Liability
The passengers are also insured against damage and delay in carriage of baggage:
- 1,519 SDR per passenger for damage to baggage and delayed carriage.
- 6,303 SDR per passenger for damages resulting from delay in flight.
- 26 SDR per kilogram for damage to cargo and mail.
3. Third-Party Liability Insurance
Private airlines are required to buy third-party liability insurance, i.e., death, bodily injury, and property damages due to aircraft operations. Such minimum coverage per aircraft and damage incident is stipulated by Turkey’s aviation liability law.
4. War, Terrorism, and Unlawful Acts Coverage
There is one unique feature of Turkey’s private jet insurance policies, which is offering liability cover against risks of:
- War
- Terrorism
- Hijacking
- Sabotage acts
- Unlawful seizure of aircraft
- Civil commotion
This ensures that passengers, operators, and third parties are covered financially, even in worst-case scenarios.
Compliance and certification process
Private aircraft operators are required to submit current insurance certification to the Turkish Civil Aviation Authority (DGCA). Underwriters of cover are also required to be registered and approved to write policies in Türkiye.
Documents required for compliance:
1. Certificate of Liability Insurance: Proof that the operator has attained the required liability coverage for passengers, baggage, and cargo.
2. Third-Party Liability Insurance Certificate: Covers third-party damage or injury outside the aircraft.
3. Policy Details: Documentation indicating policy coverage limits, policy duration, and insurer details.
Operators are required to notify the Turkish Civil Aviation Authority if the insurance is modified or canceled before the expiry date.
What does this mean for private aviation in Türkiye?
For jet owners & operators
- Higher compliance standards: Bringing all jets to date with the new insurance requirements minimizes financial and legal exposure.
- Possibility of cost increase: Premiums could increase due to the additional liability cover, particularly war and terrorism cover.
- Better protection for passengers: The additional cover is welcome news for private jet passengers.
For charter companies
- More stringent leasing agreements: Any aircraft wet-leased will also fall under the new liability standards.
- Competitive advantage: Operators offering full compliance can attract more high-net-worth individuals.
For private jet passengers:
- Greater protection: Compensation is assured in the event of injury, lost luggage, or delayed flights under the new rules.
- Greater transparency: Passengers can ask for insurance proof before booking a private flight.
How to achieve compliance
To achieve compliance with the new Turkish private jet insurance rules, do the following:
1. Review existing policies: Ensure your insurer provides cover at least as high as the new liability limits.
2. Deal with authorized insurers: Policies are valid only if written by insurers approved in Türkiye.
3. Renew certificates: All applicable certificates must be renewed and submitted to the Turkish Civil Aviation Authority.
4. Internal audits: The policy terms are to be internally audited at regular intervals to avoid gaps in coverage.
5. Operational team training: Staff needs to be thoroughly familiar with the terms of insurance coverage and compliance.
Conclusion
The new private aviation insurance regulations in Türkiye reflect the nation’s commitment to enhancing aviation security and financial safety for both passengers and operators. Raising liability limits, expanding third-party coverage, and requiring war and terrorism coverage enhance the safety and reliability of private flights in Türkiye.
For private jet owners, operators, and charter companies, the path to penalty avoidance and remaining in business is compliance. With approved insurers and familiarizing themselves with the new law, local and international private aviation players can ensure they are adequately covered and compliant.
If you’re an operator or private jet crew, it’s time to take action and contact our trip support team for further insights into this new requirement. Icarus Jet will provide guidance regarding policies to ensure you comply with Türkiye’s new rules for private jet insurance before your next flight.
FAQs
1. Is every private jet in Türkiye required to have insurance?
Yes, every private jet in Türkiye must have liability insurance with minimum coverage limits as stipulated in Turkish aviation law.
2. What are the consequences if an operator fails to adhere to the new insurance policies?
Failure to comply can lead to fines, grounding of the aircraft, and prosecution by the Turkish Civil Aviation Authority.
3. Does the insurance cover terrorism and hijacking?
Yes, war, terrorism, hijacking, sabotage, and unlawful seizure of aircraft are covered under the new insurance terms.
4. Can operators utilize foreign insurers?
Yes, but the insurer must be approved and licensed to provide coverage for aircraft operated in Türkiye.
5. How often do private jet insurance policies need to be renewed?
Policies must be continued uninterruptedly, and the operators must notify the Turkish Civil Aviation Authority in case of any change or cancellation before the end date.
