Ramy wrote:

This is an interesting assumption. I didn't dig my insurance policy
yet, but I don't recall that violations are excluded. I think, like car
accidents, you are covered whether it is your fault or not.


Wow - it's amazing pilots are so oblivious on their insurance coverage
(don't take that personally Ramy). In point of fact, insurance
companies can and will find every possible reason to avoid paying a
claim. Violation of FARs is one of the first places they will look.
This includes but is not limited to:

- Airworthiness of the aircraft (ship is within anual inspection,
required intrumentation operatinge, etc.).
- Pilot is properly qualified for the flight (cockpit checkouts,
Flight Review, etc.)
- Operation is conducted within FARs
- etc.

The concept of "no fault" primarily exists in some personal auto
policies (depending on the state) and all worker's compensation
policies. Other than that, fault is absolutely one of the first
things that is looked at.

Imagine the scenario where a collision occurs between a glider at
18,500 and a Piper Malibu on a flight plan. In the best case, let's
assume that both the Piper and glider pilot escape with their lives.
Now, there's this little problem of $500K worth of damage to the Piper
in addition to the written-off glider. The insurance company for the
Piper figures out that the glider shouldn't have been there and
immediately subrogates to collect back their $500K from the glider
pilot's insurance company. At the trial, it is determined early on
that the glider pilot was in fact not cleared into Class A airpspace.
Guess who is going to be stuck, not only with the cost of their glider,
but the $500K in damages to the Piper as well? Hint: It's not the
glider pilot's insurance company, nor is it the Piper pilot's insurance
company.

My firm is currently managing the claims information systems for one of
the 800lb gorillas in the global insurance business. We see that they
contract out investigations for especially costly aviation incidents to
specialists who do nothing but try to find out if one party or the
other was operating outside of the regs. These sorts of folks are
pilots like us, and they will use every method (including some pretty
unethical approaches) to make sure their employer doesn't get stuck
with a $500K bill if they can help it.

Bottom line: Operating at the margins our outside of the FARs will
mor than likely invalidate your insurance in the event of a claim and
may have very severe financial repurcussions for the pilot.

For more on this, you can check out this sobering article by John
Yodice in AOPA Pilot Magazine:
http://www.aopaia.com/display_article_07.cfm

Erik Mann