Debunking common aviation insurance myths with Mike Dalton – Part 2

Mike Dalton
Myth #2 – My insurance policy will pay for an engine overhaul after a prop strike

Well, that would be nice but that’s not how it works unfortunately. In a similar way to your car
insurance, mechanical breakdowns, failures, and the like are not covered by aircraft
insurance policies. Some engine damage is covered however, but it needs to be the result of
an accident or incident not caused by the engine, such as a propellor strike.

In such scenarios, an aircraft insurance policy only pays for the following:

  1. Removal and reinstallation of the engine and associated components,
  2. Mandatory inspections as required by the regulator and/or engine, component or
    propellor manufacturer, and
  3. Damage found because of the accident.

    Item 1 is straightforward and requires no further explanation.
    The scope of item 2 will depend largely on the aircraft and engine fitted and will be more
    costly and complex in line with the aircraft design. A Cessna 150 for instance would require
    just a bulk strip inspection and magneto overhaul whereas a Beech Kingair would be
    somewhat more involved.
    For point 3, Items damage from, say a prop strike, could include the engine mount,
    crankshaft, crankcase and certainly the propellor and these items would be either replaced
    or repaired by the insurance policy ONLY if the damage was found to be cause by the
    Items found to be unserviceable and in need of replacement but not damaged because of
    the accident, are not covered by the insurance policy and are to the aircraft owners own
    account. This could include, corroded cam shafts, worn pistons and items required by
    airworthiness directives to be replaced the next time the crankcase is opened. Whilst these
    may have only been discovered because of the accident, they are not damage CAUSED BY
    the accident and so are excluded from the scope of policy cover.
    While all policies all essentially the same, you should carefully check your own to understand
    what is covered and what is excluded and, importantly, what you need to pay for as part of
    that process.