Insurance, again.

[bluesideup]

Hi everyone.
A buddy of mine got an airplane with a well known co. that shall remain nameless, and in the approved pilots is this statement:

>>APPROVED PILOTS: XXXXXXXXXXXXXXXXXXXX
Any Other Pilots: Private or better properly certified by the FAA and Approved by the Named Insured.<<


He would like me to fly with him, and possibility some of his relatives when he is Not in the plane, at times, and I am apprehensive about doing it without having [FONT=&quot]"waiver of subrogation" [/FONT]
Can someone help to understand what, if anything that means?
I've seen these write ups before and pilots flying in an aircraft even when the owner was present were asked, by the owner's insurance, if they had insurance and they tried to go after them.
Thank you.
Edit: No Compensation.

 

[frfly172]

Seems like the question is not that straight forward. From the post it appears you will be flying his family members for him when he's not available. Could be touching on flying for compensation. Then all bets are off.

 

[PPC1052]

Can someone help to understand what, if anything that means?

[/QUOTE]
Not without reading the entire insurance policy.

An insurance policy consists of three parts: 1) the declarations, 2) the body, and 3) the endorsements. Language that spells out the answer to your question could be found in any of them. That's why you have to look at all three, especially the endorsements. The endorsements can completely change the relevant language.

 

[Henning]

Hi everyone.
A buddy of mine got an airplane with a well known co. that shall remain nameless, and in the approved pilots is this statement:

>>APPROVED PILOTS: XXXXXXXXXXXXXXXXXXXX
Any Other Pilots: Private or better properly certified by the FAA and Approved by the Named Insured.<<


He would like me to fly with him, and possibility some of his relatives when he is Not in the plane, at times, and I am apprehensive about doing it without having [FONT=&quot]"waiver of subrogation" [/FONT]
Can someone help to understand what, if anything that means?
I've seen these write ups before and pilots flying in an aircraft even when the owner was present were asked, by the owner's insurance, if they had insurance and they tried to go after them.
Thank you.

Ask for a waiver of subrogation or to be added as named insured. Either should be easy to provide at little or no cost.

 

[Henning]

Seems like the question is not that straight forward. From the post it appears you will be flying his family members for him when he's not available. Could be touching on flying for compensation. Then all bets are off.

Not if he holds a CPL, no problem at all then.

 

[PPC1052]

Can someone help to understand what, if anything that means?

Just re-read your post, and it occurred I may have misunderstood. Were you asking what the term "waiver of subrogation" means? Subrogation is an action taken by an insurance carrier against a tortfeasor (for discussion purposes, you can assume that "tortfeasor" just means a negligent party) to recover for damages caused by the tortfeasor to the insured that the insurance carrier was obligated under the insurance policy to cover. For example, if you have auto insurance with state farm, and I run a red light and crash your car, your insurance company reimburses you for your damages and sues me to get back what they paid. The insurance company's act of suing me is called "subrogation."

A waiver of subrogation is when you have contract before the loss that says that one party is waiving any right of subrogation. The insurance company, when it sues for subrogation, steps into the shoes of the insured, and takes the claim subject to any defenses available against the insured. If the insured has release or waived the claim, the insurance company is bound by the agreement. Typically, waiver of subrogation is seen in construction injury cases where one contractor is obligated to buy insurance for the benefit of the other party, and agrees that any right of subrogation is waived as part of the construction agreement. But that is not to say that you cannot waive subrogation outside of the construction context. Hope that helps.

 

[Henning]

Yeah, a "Waiver of Subrogation" means the insurance company won't come after you to recover the loss to their insured. When you buy insurance you typically grant the insurance company "Rights of Subrogation". You buy insurance to cover a risk that you may be able to recover from another individual. With insurance they pay you regardless, then try to recover from other responsible parties under the rights granted to you to recover. That transfer of right of recovery is Subrogation, when there is a waiver of Subrogation it is a contract taking that right away from the insurance company.