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Expired insurance grounds another Nigerian airline
Rather than their problems coming to an end, more Nigerian airlines are in deep trouble as one of Nigeria’s biggest airlines (Name withheld) has technically grounded its operations after its insurance on its airplanes was said to have expired.
It was however curious how the airline allowed insurance on all its airplanes expired in one day, making it very unlawful to operate the equipment out of their destinations. It was also curious why the operator was not in the know as to when it was supposed to renew its insurance policy on its fleet.
At the Lagos airport, a large number of their fleet was seen on the tarmac of the Lagos airport.
As at 9 am today, the carrier was yet to make a flight out of Lagos or into Lagos indicating that a crisis may loom later today and tomorrow as people go back to work after the long Sallah holiday.
A source at the airport said insurance on the airplanes expired midnight of today.
Airlines always make the mistake of insuring their airlines same time making it difficult to operate their airplanes when they default on premiums.
The International Civil Aviation Authority (ICAO) and the United States Federal Aviation Administration (FAA) including Nigeria Civil Aviation Authority (NCAA) forbids the operations of civil aircraft without proper insurance.
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, each dependent on the aviation activity within each country.
The United States has a large percentage of the world’s general aviation fleet and has a large established market. A
ccording to the 2014 report from GAMA (General Aviation Manufacturers Association), there are 362,000 general aviation aircraft worldwide, and 199,000 (or roughly 55%) are based in the United States.
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