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Can anyone clarify the advantages (if any) of choosing Passenger Voluntary Settlement cover option in an aircraft insurance policy when the policy already has third party and passenger liability cover?

Passenger Voluntary Settlement (PVS) will pay out a set financial amount (e.g. £50,000) in the event that a passenger suffers a specific injury (e.g. loss of sight, loss of limb, death) as a result of an aircraft accident.

Probably the main advantage of PVS over the cover provided under the passenger liability section is that there is no need for the injured party to prove the owner / operator of the aircraft was liable for the injury they sustained. This can lead to a quicker and more certain settlement. However, a recipient of a PVS settlement may be required to forego any other rights to claim on the policy, and the amounts which might be awarded under the passenger liability cover may well be higher than the benefit payable under PVS.

Hope this is of some help.

Cheers,

Bob

So basically, you pay to reduce admin for insurance company and third party claiment in the event of an injury, unless claiment thinks they deserve more?

Bob Bevan wrote:Probably the main advantage of PVS over the cover provided under the passenger liability section is that there is no need for the injured party to prove the owner / operator of the aircraft was liable for the injury they sustained. This can lead to a quicker and more certain settlement. However, a recipient of a PVS settlement may be required to forego any other rights to claim on the policy, and the amounts which might be awarded under the passenger liability cover may well be higher than the benefit payable under PVS.

What's the benefit for the policyholder?

PVS is not dissimilar to Personal Accident cover, in that the main benefit will be to the person who receives the payout, albeit this might be cold comfort given the seriousness of the injury which may have occurred!

Given that the policyholder themselves may also be a passenger with someone else as PIC, they may also benefit from the PVS cover in the event of an accident.

Hope this helps.

Cheers

Bob

Bob - just reading this thread - PVS ( Or personal accident) isn't a replacement for liability as you can't avoid liability ( in law) and generally doesnt meet minimums that you legally need to fly your aircraft with passengers.

Much like the PA cover or 'medical & related benefits' cover - it's really helpful to get a quick, but usually smallish chunk of cash for people without needing to argue about or agree liability.

Sounds like a variation on what car insurers already do, make a quick settlement offer on injuries with a full and final clause, just wrapped differently.

Most general aviation policies will be based on a standard market wording called AVN1 (There are some variations such as AVN1c, AVN1e etc). Endorsement 34 deals with PVS and includes a condition to the effect "In consideration of any settlement under the provisions of this Endorsement, the Insurers shall be provided with a full legal release for all claims for damages against the Insured and/or any other party(ies) protected by this Policy from the injured passenger and/or any person having a cause of action for such bodily injury."

This clause is why I suggested that the recipient of a PVS settlement may be required to forego any other rights to claim on the policy. Ultimately the injured party does not have to accept the PVS settlement and may pursue a claim under the passenger liability cover.

Hope this helps.

Bob