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.

Updated Terms of Reference (2021)

In 2021 the Union was advised by the AICG Secretariat that the International Underwriting Association (IUA) and Lloyd’s Market Association (LMA) had taken the opportunity to review the Terms of Reference (ToR) for the Group. The ToR had not been looked at formally since the creation of the Group in 2005 and it was evident that some elements were now obsolete or incorrect. A partial reason for the review was also the completioin of the Brexit transitional period and the impact this has on the membership criteria in the existing Terms of Reference. A copy of the updated ToR is available below, reflecting the following key amendments:

• Amending the membership criteria to ensure that London market entities can continue to be represented on the AICG.
• Removing several external associations that no longer exist and amending the reference to the broker association.
• Slightly extending the remit of the AICG to also consider AVS clauses, in addition to AVNs.To clarify, AVS clauses are clauses that are included in the policy but manage the administrative and technical operation of the policy rather than address policy coverage (as the AVN clauses do). As AICG only strictly considers AVN clauses, it has not drafted these AVS ‘slip clauses’ (which are currently drafted and published jointly by IUA, LMA and LIIBA). These are not drafted very often but it is thought preferable to use the drafting expertise on the AICG to facilitate these where necessary.
• Tidying up some of the language from an administrative and clerical perspective.

The AICG Secretariat confirmed that these amendments were regarded as being straightforward and, in one case, necessary to facilitate the continuing operation of the Group. It is not thought that any of the changes fundamentally amend the operation, membership or core objectives of the AICG agreed with the European Commission. The European Commission have received and noted these updated Terms of Reference.