Hinshaw Attorneys Jurman, Anderson, and Lewis Author Byline on Insurance Implications for Leased Aircraft Currently Seized by Russia
Hinshaw partner Rory Jurman and associates Sarah Anderson and Peter Lewis recently authored a Law360 Expert Analysis discussing a new Russian law allowing Russia to place aircraft leased from foreign companies on the country's aircraft register and the significant implications this law will have on insurers. The law was passed following Russia's invasion of Ukraine in February and the sanctions being placed on Russia by a series of nations in response.
Russia's new law threatens massive losses for insurers in the aviation insurance market. The authors note that "[c]laims for the expropriation of planes may indeed rise to $10 billion in a worst-case scenario."
The authors outline important considerations for insurers who may be impacted by this Russian law, including choice of law considerations, arbitration clauses, the role of lienholders in these types of claims, and the presence of exclusions. "Although each policy contains its own specific language, a typical conversion exclusion may preclude coverage for the wrongful conversion of the covered aircraft," they state.
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"Insurance Implications for Aircraft Grounded in Russia" was published by Law360 on September 6, 2022.