The candidates performed below average in this question.  The required answers were a follows.

2(a) Aviation insurance is an insurance coverage designed for the operation of aircrafts
and the risks arising from the use of aircrafts. It includes cover for airports and allied
services.

Explanation of covers provided by Aviation insurance

            (i)         Damage to or loss of aircraft itself - This covers an aircraft owner or operator
against accidental loss or damage to the aircraft while it is in flight; taxing on the
ground or moored. Aircraft includes helicopter which are usually referred to as
rotating wing aircrafts.
            (ii)        Third party legal liability- It indemnifies the insured for all sums legally due to
third parties resulting from accidental injury or death of persons or damage to
properties on the ground and outside the aircraft provided such an accident is caused
directly by the aircraft or object falling from it. It also covers liability due to sound
and pollution arising from the accident.
            (iii)      Legal liability to passengers - This policy indemnifies the aircraft operator against
                        allsums for which he is legally liable to pay in respect of accidental bodily injury to
or death of passengers while entering, being carried in or alighting from the aircraft in
            the course of carriage by the operator etc.

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