Review article
https://doi.org/10.21857/9e31lhd3lm
Hull Insurance of Leased Aircraft: In Peace and War Time
Iva Savić
Ivan Modrić
Abstract
The European Union sanctions imposed on Russia in late February 2022 resulted in a de facto prohibition on the provision of leasing and insurance services to Russian air carriers, as well as the termination of existing contracts. The question of recovering aircraft that were in the possession of Russian carriers at the time became moot when the Russian authorities decided to seize them, in an attempt to extricate themselves from the situation thus created. This sequence of events raised numerous legal and practical questions for leasing and insurance companies, some of which finally found their answers and resolution in the judgment handed down in the case of AerCap v AIG Europe, Lloyd’s and others, in June 2025. This paper analyses the legal framework of aircraft
hull insurance with particular emphasis on hull insurance for leased aircraft and its specific features, and specifically addresses issues relating to war risks cover in aircraft hull insurance. The paper is structured in two layers: following an overview of aircraft hull insurance, questions of coverage and special clauses are analysed through the lens of the judgment in AerCap v AIG Europe, Lloyd’s and others. In this context, the paper also examines the relationship between all risks (AR) and war risks (WR) clauses, as well as the practicality of contingent cover and the practical (in)effectiveness of possession cover.
Keywords
aircraft hull insurance; leased aircraft; all risks; war risks
Hrčak ID:
353359
URI
Publication date:
12.11.2026.
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