I had a great question from a customer and thought it would be good to share the response. The customer is interested in buying a pressurized twin engine aircraft but is not instrument rated.
Just buying liability alone does not change the requirements for the instrument rating. The insurance underwriters are at risk of a claim anytime you strap into the pilot seat. The reasoning that a liability policy has less risk is not accurate. There is as much or more risk for the insurance company than the cost of the aircraft. At least if you crash the aircraft they have a set dollar amount they would pay out to your estate. If you insure the plane for $100,000 that’s the maximum they will pay (minus any deductibles).
But with liability, if there is a liability issue such as a non-instrument pilot getting caught in bad weather or at night and crashing, that pilot then becomes labile for any property damage or bodily injury that results. That could end up in court and the settlement could be more than the policy limits. That affects the pilots estate and the insurance company and it doesn’t matter what the pilot promised or planned on doing, the risk for the insurance company is still there.
Also, the concept behind a pressurized aircraft is to provide more comfort at higher altitudes. Even if you do not plan on flying at night or in clouds the risk of a pressurized aircraft and going cross country could put you in a situation where you may need the instrument. Most accidents are still pilot error and often VFR flight into IMC....
Now, all that said, I am a perfect example of what not to do. I have been a pilot since high school, married into an aircraft family and I am single and multi rated....but not instrument. Been in it, don’t like it, wouldn’t stay proficient enough. Not being instrument rated helped to push me out of aircraft brokerage and sales. Most of my brokerage aircraft were Skymasters. I couldn't get named on some of the policies because of the IFR issue. So I know where you are coming from.
We have and still do get insurance for non instrument pilots in twins and pressurized aircraft. Sometimes it is based on your location and the typical weather and traffic situations, Dense air traffic areas often require an instrument. Places as the LA area or say NY. While in my case here in Central Iowa it might not be as important. Or say Florida, while having lots of air traffic also has lots of sunshine.
And the weird thing is that even if you have the instrument, it doesn’t mean you will use it. The only way the insurance companies try to manage that is they require factory approved training and Instrument proficiency checks in the make and model.Labels: AIG Aviation Insurance, aircraft, buying aircraft, liability only, no instrument, Pressurized twins