The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-06-20
AIR INSURANCE
IN step WITH
; PLANE ADVANCE
Rates Are High, but Policies
Available on Most
Risks.
Aviation
John, if you get in that airplane,

John, II you get IN that alrplane,
your insurance will be cancelled. -
Commonly heard in vicinity Of
airports, this wifely warning usu-
! ally is erroneous, a study of instr
ance rules reveals.
Policies issued by nearly every in
Burance company are incontestable
after certain period, usually one
and sometimes two years. Thus,
after the contestable period is past,
the company is forced to pay the
policy regardless Of the manner of
death.
Aviation is one of the biggest
problems faced by insurance COM
panies today. Because of its new
y ness and rapid expansion, attempts
to place it on a sound insurance
basis have not yet been altogether
successful.
Progress Made
However, progress of aviation is
disclosed by the fact such insur-
ance is obtainable, although some
what expensive.
At least two large companies now
issue coverage in practically all
forms corresponding TO the risks on
an automobile.
Combined fire and theft rates are
4 not much higher than on Ford
' auto, according to H. H. Wells, of
the Wells and O'Keeffe Insurance
Agency.
Public liability and property
damage is about four times as much
as on standard auto" Wells said.
Accidental damage is figured on
the value Of the plane, and the
percentage of insurance premium to
the value of the plane is only about
twice as much as on the auto
mobile, on the whole.
1.-THE value and economy of air.
planes has been proven to the bust
\ ness world, and now since invest
ment can be protected by insurance,
it is reasonable to expect that every
firm which features speed as an
asset will have an airplane or fleet
of planes within the next five
years"
Policies Limited
Wells said his agency started it's
airplane department in March, 1927,
and insured fifteen planes that
year. Applications have been taken
on twenty planes in the past two
months.
Aviation insurance is in its in
fancy and is expensive, because of
the few airplanes in existence, in
comparison with automobiles, giving
a smaller field over which losses
may be spread" according to L. G..
Gordner, Travellers Insurance Com
pany agent.
Some companies refuse to write
policies under any circumstances
where the applicant is a f1ier or in
tends to be a frequent airplane
passenger.
Many old line insurance COM
panies write life policies permitting
aviation activities. These differ
greatly, some costing $25 additional
for each $1,000 insurance with a
limit on the amount issued, others
making no extra charge, but placing
a limit as low as $4,000 on the
amount of such policies,
Collision Rate High
The Travellers Insurance Com
pany now writes policy paying the
minimum indemnity for aviation
injuries incurred while a passen-
ger in a licensed passenger airplane
or dirigible airship operated by an
incorporated passenger carrier on a
regular passenger route between
definitely established airports, with
licensed pilots.
Other forMs Of insurance on
planes are still higher than on auto
mobiles. The ordinary tornado and
cyclone rate for automobiles is Is