Aircraft Insurance – for when planes go BUMP
When we think of aviation risk, we often imagine mid-air emergencies or catastrophic events. But a growing number of recent incidents remind us that aircraft are vulnerable even on the ground.
Taxiways, parking bays, and runways are complex, high-traffic environments. Even minor misjudgments can lead to costly aircraft-to-aircraft contact, as seen in recent events.
Incident 1: Delhi Airport (April 2026)
At Delhi airport, a SpiceJet Boeing 737 taxiing into a parking bay struck the horizontal tail of a stationary Akasa Air aircraft.
The SpiceJet aircraft’s winglet was damaged and the Akasa aircraft’s tail structure was impacted. Both aircraft were grounded for inspection and no injuries were reported.
Regulators have initiated an investigation, and both pilots and the concerned ATC personnel have been taken off duty pending review.
Incident 2: Mumbai Airport (February 2026)
In a separate incident at Mumbai airport, two aircraft, one from Air India and one from IndiGo, made wingtip-to-wingtip contact while taxiing.
This resulted in visible structural dents following which the aircraft were grounded for checks. No injuries were reported and the passengers safely disembarked.
While these incidents may appear minor, even small structural damage in aviation can lead to significant repair costs and operational disruptions. Similar ground collisions occur regularly:
- Aircraft clipping wings during taxi
- Collisions with ground equipment
- Damage during pushback or parking
As airports become busier and turnaround times shorten, ground risk exposure is increasing worldwide.
What does Aircraft Insurance cover?
Aircraft insurance can be very comprehensive. It typically includes:
- Hull Insurance: Covers physical damage to the aircraft itself whether in flight or on the ground.
- Liability Insurance: Covers damage caused to third parties including other aircraft, property, or passengers.
- Ground Risk Cover: Specifically addresses risks when the aircraft is not in flight (taxiing, parked, or under maintenance).
Other common coverages usually included as riders (optional coverages) under aircraft insurance are: War risk insurance and business interruption.
For ground collisions like in the above incidents, in principle:
- The aircraft at fault is liable for damage caused to the other aircraft
- Its liability insurance responds to compensate the affected party
But at the same time:
- Each airline may also claim under its own hull insurance for immediate repair
- Insurers may later settle liability between themselves through subrogation
So both hull and liability covers often come into play simultaneously.
More complex than motor insurance
At first glance, this seems similar to motor insurance involving car accidents, but aviation is far more complex. But aircraft insurance involves higher asset value (aircraft cost hundreds of crores) where multiple parties involved (airlines, airports, ATC, ground handlers) and technical causation analysis required following an incident. Further, regulatory investigations influence liability
For example, in the Delhi case:
- Was it pilot error?
- ATC instruction?
- Ground coordination failure?
Liability depends on precise determination of fault, not just the incident itself.
“Minor” Damage
Even seemingly small collisions can have major consequences:
- Aircraft grounding leads to revenue loss
- Repairs require specialised aviation engineering
- Replacement parts are expensive and time-sensitive
- Flight disruptions affect passengers and schedules
In aviation, there is no such thing as a “small dent” and every defect must be thoroughly inspected and certified.
Underwriting aircraft insurance is no easy task for insurers. They must balance high-value exposures against pricing that the market views as reasonable, complex claims investigations with regulatory action, and also provide for increasing operational risks in the aviation industry.
In aviation, even a routine taxi can turn into a costly event. And that is exactly why comprehensive, well-structured insurance coverage is indispensable.
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