Aviation Insurance Clauses Group (AICG) 

The Aviation Insurance Clauses Group (AICG) was established in June 2005 by the Lloyd's Market Association and the International Underwriting Association of London. The AICG establishes non-binding standard wordings, clauses and variants for use in aviation insurance policies. Users are consulted on proposed clauses and can propose variant clauses themselves. This process has significantly increased transparency for air carriers.
Further details of the AICG, including minutes of the AICG meetings and sets of draft wordings and clauses issued by the Group since its inception, are available from the AICG website.

Wordings and Consultation Drafts

In February 2017 the IUAI reached agreement that the consultation drafts, and wordings circulated by the AICG, can be made available via the Union website.
IUAI Members will be notified when consultation drafts are circulated and when new wordings are released.
 

Aviation Insurance Clauses (AICG) CD58 Publication of Software Clauses

Following the request back in August 2019 for the Aviation Insurance Clauses Group (AICG)to consider publication of a Model AVN clause addressing cyber risks, the Group published ‘CD55 Software Limitation Clause for market consultation.

After the initial round of consultations the AICG was asked to produce a Suite of Software Limitation Clauses, published to market consultation in April 2020 as CD56. These Consultation Drafts were circulated to Union Members and posted to the AICG Section of the Union website at the time they were issued.

The AICG received a large number of comments on CD56, primarily concentrated around the definitions used in the clauses, the intended scope of cover provided and how the drafting would apply to practical liability scenarios. Following extensive discussion, the AICG consulted on a revised suite of clauses based on a core ‘Cyber Incident’ definition (CD58). Based upon the comments received and further detailed consideration by the AICG, the AICG Chair has now agreed that a suite of clauses reverting to the approach of ‘Software’, designated AVN133 through to AVN140, be published. The individual clauses will shortly be uploaded to the AICG website.

The Union has received the publication letter for these clauses, which incorporates some drafting comments, along with the clauses (AVN133/AVN134/AVN135/AVN136/AVN137/AVN138/AVN139 and AVN140). These documents can be downloaded from the link below.

AICG Consultation Draft 58 (CD58) - Further revisions to the Cyber Incident Clauses

Following the circulation of AICG Consultation Drafts CD55 and CD56 in August 2019 and April 2020 (see below), and in light of further feedback and comment, a further set of Consultation Drafts, CD58, have now been issued by the AICG for consultation.

The letter outlining the latest position, along with the relevant drafts, can be found below.

If you have any feedback or comments to make regarding these drafts, please refer them to Chris Jones, the Secretary of the AICG, using the contact details shown on the AICG Letter.

The closing date for comment is Wednesday 2 September 2020.

AICG Consultation Draft 57 (CD57) Publication of Grounding Liability Clauses

In July 2020, AICG considered a request from a market entity to draft a suite of AVN clauses addressing grounding liability. In line with the AICG Terms of Reference, the AICG Chair considered that this request was reasonable and draft clauses were published for market consultation (CD57). These drafts were circulated to Union Members and posted to this section of the Union website.

The AICG received a number of responses to CD57 which led to some drafting amendments. The AICG Chair has now agreed that the suite of Grounding Liability clauses, designated AVN128 through to AVN132, be published forthwith.

The AICG Publication Letter, along with the clauses, can be found below.

CD58 AICG Letter and Drafts
(Adobe PDF File)

Consultation Draft 56 (CD 56)
A Suite of Software Clauses

Following the extended discussions and consultations on AICG Consultation Draft 55 (CD 55), and the subsequent decision to put the Draft on hold, the AICG  issued a suite of Software Clauses that looked to manage cyber risks in line with the requirements of the UK regulator, the Prudential Regulation Authority, and Lloyd's in respect of clarification of cyber exposure.

The consultation drafts (below) were made available for 30-day consultation, with the consultation period closing on 8 May 2020.

Following feedback received by the AICG to CD 55, a further set of Consultation Drafts (CD 58) were issued on 3 August 2020 (See Above).

AICG Consultation Draft 55 (‘CD55’)
Software Limitation Clause


In May 2019, AICG received a request from a market participant to consider publishing a model AVN provision addressing cyber risks. A consultation Draft ('CD55') was circulated with an extended consultation period, originally finishing in October 2019. However, due to the complexity of the subject, and ongoing discussions between London Market insurer and broker associations, the consultation was put on hold.

CD55 has been subsequently been superceded by a suite of Software clauses, issued for consultation by the AICG as CD56, in April 2020 (see above).


AICG Consultation Draft 54 (‘CD54’)
Aviation Spares and/or Equipment All Risks Insurance Policy

 
In late 2017, AICG received a request from a market participant to consider drafting an AVN provision addressing Aviation Spares and/or Equipment. In line with the AICG Terms of Reference, the AICG Chair considered that this request was reasonable and a working group was formed to develop this further. 

AICG felt that the best way to approach this was to draft two provisions. The first part of this work was to develop an endorsement that, where appropriate, could be attached to AVN aircraft wordings. This was completed and AVN123 published in February 2018. The second tranche was to develop a standalone Spares wording and a draft is now completed for market consultation. The wording is shown below and will also shortly be added to the AICG website.

The Deadline for comments or submissions on this draft has now passed, submissions were made by the LCSG, and certain members. Any updates will be published here.

CD 53 Aviation Premises, Hangarkeepers and Products Liability Insurance Policy 

 
In late 2017, AICG received a request from a market entity to consider drafting an AVN provision addressing Aviation Premises, Hangarkeepers and Products Liability Insurance. As a result of this approach, the AICG established a Working Party, and the resulting Consultation Draft, CG 53, has now been made available for consultation.

The Deadline for comments or submissions on this draft has now passed. Any updates will be published here.

CD 50 Data Exclusion Clause

Following an approach from a market participant in late 2016, the AICG is assessing the treatment of cyber risks, particularly in relation to damage to tangible property and/or bodily injury. This work is ongoing, but on 29 September the AICG issued Consultation Draft 50 (CD 50), a draft clause, issued for market consultation, that deals with data.

A copy of the covering letter, and the consultation draft can be accessed below. The Deadline for comments or submissions on this draft has now passed, submissions were made by the LCSG, and certain members. Any updates will be published here.

2021 AGM


Due to the COVID 19 Pandemic the 2021 AGM will be held as a Virtual Event.
We plan to be in Dublin for our AGM in June 2022.