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The Frills and Thrills of Air Travel Insurance

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Over the years, the Nigerian aviation sector has witnessed an undulating progress, occasioned by many moribund airlines. At the last count, the number of airlines that have folded up is over fifteen. Yet many are still going into the field, without adequate preparations. The importance of air travel is so important in meeting the business needs of a nation that the Central Bank of Nigeria (CBN) recently proposed to extend its bail out facilities to the sector. Unlike vehicle transportation where owners can afford to neglect insurance, aviation insurance is compulsory, especially certain provisions of them which must be met within a regulated time. Insurance is basically to avoid any kind of unexpected damage or loss of those things that are fiscally associated. In case of aircraft insurance it covers the aircraft and its contents. The owner’s responsibility and accident insurance of the passengers is also covered most of the times. At times the state requires the owners and operators to have insurance covering the aircraft and the operations. At least third party liability coverage should be there so that if a loss of injury is caused to a third person due to the operation of the aircraft, responsibility is taken. If the aircraft is hypothecated as collateral, the finance institution will require hull coverage and replacement value insurance as most of the finance institution have it as a policy. This is a must since the accidents actually incur heavy loss on the people involved and at times it takes years for them to recover. According to an aviation insurance expert Barrister Gbenga Tabi, some of the air crashes that Nigeria has experience could be traced to poor maintenance and lack of proper insurance on ground. This, he said explains why even after one decade, victims of past crashes in the country are yet to be compensated by the insurance. He called for a consortium of insurance companies to write out every requirements of our aviation insurance, noting that the area is so expensive to be left in the hands of one insurer alone. Probably that is the reason it was initially started by the marine insurance underwriting community since initially ships were as large as an investment as an aircraft now though ships have not yet lost their glory and value. It started applying to the aircraft industry, the most expensive aviation industry in modern times, from the year 1929 when the Warsaw convention was signed.
Easy methods to obtain the Policy, an insurance agent or broker will save you form all the trouble of applying for insurance. Then the insurance company would go through your financial history to assess the risk that would be involved in insuring you. After all the investigation and acceptance of all the risk factors, the premium would be determined and which would be based on the amount of risk involved. The more the risk factor, the more expensive your coverage would be. So if you do not want to pay a certain amount you can talk to them wherein they might accept the negotiation or simply reject it. The deciding factors, which work behind the underwriting decisions are Aircraft type, Qualifications of the pilots involved, Nature of the operation that the aircraft is involved in, whether its business or pleasure and Base of operations.
One issue that makes aviation insurance costly is that most of the operations and running cost are prized in foreign currencies. The risk policies that are issued may be something like the hull risk policy, the hull all-risk policy which insures the aircraft against all kinds of physical loss and damage except the exclusions. There is a standard limit of deductible that applies to the aircraft insurance policies and that applies in case of partial loss and the amount is somewhere like $50,000 to $1,00,000. Deductibles can be insured by deductible insurance. Exclusions to the policy would be the loss of use, delay or consequential loss like grounding. In recent times, especially after the series of air crashes we have had, The Nigerian Civil Aviation Authority has had to ground many aircrafts for failure to adhere to set standard. For instance, the wear and tear and deterioration of the aircraft would certainly not be included. Also excluded is the ingestion damage like stones and dust getting in the engine resulting into deterioration. Mechanical Breakdown is also not covered. This is all about the aircraft insurance, that is the mechanical vessel, but there is more to it like stated above that the contents of the vessel also are the liability of the owner and the operators and they also have to be insured. Contents here include passengers; baggage, cargo and mail; and third party liability would any third party who faces loss due to the operation of the aircraft. Liability (third party) insurance excludes damages to the owner own property in case of third party damage; war or risks would also not be included and so will noise and pollution also would not be included. Whenever you go for Aviation Insurance, check the clauses and read it carefully. There might be few terms and conditions that are important but you overlook it.

 


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NCC Threatens Illegal Users of GSM Boosters with Arrest, Prosecution

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Nigerian Communication Commission (NCC) has warned telecom consumers to desist from using illegal GSM boosters.

NCC Threatens Illegal Users of GSM Boosters with Arrest, Prosecution

The commission also said that anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.

GSM boosters are devices that transmit and receive telecommunications signals and can therefore interfere with other radio frequency equipment.

Ikechukwu Adinde, director, public affairs, NCC, said in a notice published on NCC website, that only licensed network operators are allowed to use GSM boosters.

The booster, also known as amplifier or repeater is made up of three main elements – exterior antenna, amplifier, and interior antenna.

They form a wireless system to boost cellular reception

“Members of the public should note that, willful interference with any wireless telegraphy is an offence under Section 16 of the Telegraphy Act, 2004,”it said

The agency said it will not condone any flagrant breach of this law.

It has also enforced measures to prosecute offenders.

Accordingly, monitoring mechanisms have been put in place and anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.

“Any member of the public with useful information regarding the illegal use of GSM Boosters should contact the Commission on 09-4617000/7351 or send an email to [email protected],” the notice said.

“Individuals desirous of using GSM Boosters should note that they can only do so in conjunction with licensed network operators,” it added.

 

 


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Tizeti Selects Nokia to Provide LTE Fixed Wireless Access Solution for High-Speed internet Services in Nigeria

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Tizeti announced that it selected Nokia’s Fastmile Long Term Evolution (LTE) technology to enable usprovide superior internet services to over 1 Million subscribers in Port Harcourt, Edo and Ogun in Nigeria.

Tizeti Selects Nokia to Provide LTE Fixed Wireless Access Solution for High-Speed internet Services in Nigeria

Tizeti will deploy Nokia’s AirScale Base Station TDD-LTE and FastmileFixed Wireless Access (FWA) gatewaysto deliver premium internet and Virtual Private Network (VPN) services to Residential, Small and Medium Enterprises (SMEs).

The solution will also enable Tizeti’sto deliver a more robust, high-speedinternet service to subscribers and the flexibility to seamlessly evolve to 5G Fixed Wireless Access when needed.

Nokia’s FWA solution enables Tizeti to fast-track broadband access and provide a best-in-class broadband experience to its subscribers.

Nokia’sAirScale Base Stations ensure high-quality connectivity and coverage and enablesTizeti to evolve the network in line with customer demand.

Nokia’sFastmilegateways connect wirelessly to the existing network to createa fastbroadband connection and enhanced Wi-Fi experience in the home.

The Nokia Network Services Platform will help Tizeti to simplify operations and quickly respond to changing market demands.

Kendall Ananyi, Tizeti, said:“We are committed to providing the best-in-class network experience to our subscribers. We are confident that Nokia’s proven technology and expertise will help us differentiate our services based on quality. This a crucial project for us as it introduces LTE in our networks and allows us to bring new and innovative services to our subscribers.”

Eniola Balogun, Nokia, said:“We are thrilled to work with Tizeti on the initiative to upgrade their network to bring the latest products and services to its subscribers. Nokia Fastmile will help Tizeti to cost-effectively enhance the customer experience.

The project will also enable them to delight their subscribers by providing more reliable data services.

On the other hand, Tizeti will benefit by adding new revenue streams.”

 

 


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Risk Assets Push Higher on Vaccine Hopes; Eyes on the Fed

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By Hussein Sayed, Chief Market Strategist at FXTM,

After two consecutive weeks of back-to-back declines, global stocks kicked off Monday with solid gains amid a surge in M&A activity and positive signs towards vaccine developments. Currency markets were little changed ahead of a busy week of monetary policy announcements, while Oil and Gold ticked slightly higher.

The two big deals announced over the weekend were Softbank’s plan to sell chipmaker ARM to Nvidia for more than $40 billion and Gilead Sciences to acquire Immunomedics for a price tag of $21 billion. Meanwhile, on the vaccine front, AstraZeneca resumed its phase-3 trial on Covid-19 after being suspended last week following a neurological illness developed in one participant, and Pfizer announced that its vaccine could be distributed before year-end if found safe and effective.

 

Central Banks will take centre stage this week with the Federal Reserve, Bank of England and Bank of Japan all due to announce policy decisions. Out of the three meetings, the Fed is likely to be the most watched following its historic shift towards average inflation targeting. The big question remains how will the FOMC put this policy into action?

 

From what we know now, the Fed is set up to keep interest rates near zero for a long time, possibly for several years. Given the new framework, any spike in inflation won’t translate into immediate rate hikes as the Fed wants to compensate for the lost years when they have failed to hit the target. The dot plot will be the key guide for investors and traders alike. If inflation projections remain at 2% or below for the foreseeable future, this will solidify market expectations for a low rate environment for many years to come. That said, Jay Powell would still have to explain in more detail how the new framework will be translated into policy action.

 

In June’s economic projections, the Fed anticipated unemployment would be at 9.3% by year-end, but, in August, unemployment was well below that forecast at 8.4%. Many other economic data surprised to the upside during the June – August period in a clear sign that most economists were overly pessimistic towards the strength of the recovery. However, there is still a considerable amount of uncertainty given the latest surge in Covid-19 cases worldwide and the US, especially as we get closer into the winter season. A second wave will undoubtedly put the recovery at risk in the final quarter of the year and it will be interesting to see the Fed’s view on that issue.

 

As for the market selloff over the past two weeks, the Fed isn’t likely to show any signs of concern. In fact, policymakers should be satisfied with the pullback as the risk of a bubble in several assets has been growing due to the Fed’s extremely accommodative policies. Unless we see another 10 -15% drop, do not expect the Fed to intervene.


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