Underwriting in insurance refers to principles & practices followed by an Insurance Company to fix the insurance premium , decide whether to accept the risk of the prospective insured or not, the amount of risk that can be accepted, whether to bear the entire risk on it's own or share the risk with the reinsurance company. In order to get the best coverage at least premium, the prospective insured must ensure to provide the maximum information in the Proposal Form.

• Degree of Hazard - Exposure to loss or damage to property.
  These hazards comprise of :
  • Moral Hazard
  • Physical Hazard : Aircraft Type/Model/Year etc.
  • Operational Hazard : Take-off and Landing Risk etc.
  • Natural Hazards : Weather/Icing/Mountains etc.
  • Geographical Area of Operation / Location
  • Purpose of insurance : Aircraft Usage/Nature of Services provided etc.
  • Air Crew Training and Experience
  • Agreements entered
  • Sum Insured viz. Value of Aircraft, Liability cover limit etc.
  • Global market conditions and prevalent claim scenario
• Classification of Risks.
  Each risk is classified into broad categories by the insurer to try and charge a particular category a premium according to the hazard they are exposed.
• Past Loss Experience.
  This plays a key role for the insurenace company to arrive at a premium. Therefore, statistical data regarding past losses is essential.
• Miscellenous Factors.
  These help the underwriter of the insurance company in risk analysis.
  • Statutory Regulations
  • Information provided in the Proposal Form
  • Others depending upon the Product/Life to be insured