Insurers temporarily stop covering aircraft in Ukrainian airspace

14 February 2022, 09:04 PM

UK reinsurance broker Lloyd informed Ukrainian insurance companies on Feb. 12 that it was temporary no longer covering military risks in Ukrainian airspace, Ukrainian news agency Interfax-Ukraine has reported. 

“Yes, one of the brokers, Lloyd informed us that starting Feb. 14 they would no longer be covering military risks in aviation insurance,” said one Ukrainian insurance company CEO, Anatoliy Ivantsev.

“The update applies both to underwriting and car insurance.”

Ivantsev added that the new restriction only applies to military risks. All other insurance risks remained covered.

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“If an aircraft was to be damaged as result of military activity, the insurance company and insurers would not cover this damage caused by military activity,” said Ivantsev.

If the aircraft fell on a residential building, city, factory, etc. and caused damage to third parties, this damage would not be covered either.” 

According to Ivantsev, aircraft lessors, aware of the update to risk coverage, will ask companies who lease their airplanes to move them out of non-covered territory. Airlines flying their own airplanes will be able to continue their operations at their own risk.

On Feb. 12, Dutch airline KLM temporarily stopped flights to Ukraine.

On Feb. 13, a plane belonging to Ukrainian airline SkyUp, flying from Portugal to Kyiv, diverted and landed in Moldova: The Irish company that leases aircraft to SkyUp had barred the plane from entering Ukraine’s airspace.

Ukraine’s Infrastructure Ministry announced on Feb. 13 that Ukrainian airspace was to remain open. The ministry is working to prevent risks for airlines that may arise in the event of a potential Russian invasion of Ukraine.

In the light of potential Russian military aggression, dozens of countries have called upon their citizens to leave Ukraine and cancel their trips to the country. A number of countries have also reduced their diplomatic staff in Ukraine, moved their embassies to western Ukraine or evacuated part of their personnel and their families.

Western media and intelligence agencies report that another Russian invasion of Ukraine is likely, as Moscow has amassed over 130,000 troops around Ukraine’s borders since October 2021.

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