Australian Aviation Underwriting Pool Proprietary Limited A.C.N. 004 489 810 Your Aviation Insurance Policy - Personal Accident EDITION 1 Section 1: ABOUT THIS POLICY 1. YOUR RELATIONSHIP WITH US We have authorised our Agent to enter into this Policy (which includes the Coverage Schedule and any endorsement(s)) with you on behalf of each of us and to do all things we are able to do under or in connection with this Policy. You have made to our Agent or there has been made to our Agent on your behalf a proposal which is incorporated into and forms part of this Policy. By this Policy we insure you in respect of certain bodily injury that the Insured Person may sustain. Any claim made under this Policy or any proceedings commenced in relation to this Policy must be made to or commenced against our Agent. Our Agent has the power to make, in its own name, any demand or commence or defend any legal action arising out of or incidental to this Policy so that the demand or action shall be as good and effective as if made or commenced by or against each of us. Should any amount of money become payable to you under this Policy each of us has agreed to pay you, your executors, administrators or assigns the portion of that amount calculated by reference to the percentage appearing beside each of our names in the Coverage Schedule and no more. None of us nor our Agent shall have to pay to you, your executors, administrators or assigns any moneys owing or owed by another of us whether the moneys are owed under this Policy or not. 2. WHAT YOU GET UNDER THIS POLICY If you pay the agreed premium and observe the Essential Terms set out in Section 5 we agree to provide you with the insurance cover described in this Policy for the Policy period of cover and any other period for which this Policy is renewed. However, the total amount of our combined liability under this Policy is limited to the relevant amount or amounts stated in the Coverage Schedule under the heading "Schedule of Compensation". Furthermore and importantly, under no circumstances will we pay any moneys under this Policy where the Insured Person suffered bodily injury in any of the circumstances described in Section 4. Section 2: DEFINITIONS In this Policy: WE, OUR, US "We", or "Our" or "Us" refers to the insurance companies named on the first page of the Coverage Schedule. YOU, YOUR "You" or "Your" refers to the Assured(s) named in the Coverage Schedule. OUR AGENT "Our Agent" refers to Australian Aviation Underwriting Pool Proprietary Limited. COVERAGE SCHEDULE "Coverage Schedule" means the Schedule to this Policy which sets out details relevant to your insurance cover including the sum assured in respect of the risks for which this Policy covers you. Please read it. SCHEDULE OF COMPENSATION "Schedule of Compensation" means the schedule headed "Schedule of Compensation" appearing in the Coverage Schedule. ACCIDENT "Accident" means any happening or occurrence not expected foreseen or intended by you or the Insured Person and includes: (a) a mishap to an aircraft which the Insured Person is piloting or in which the Insured Person is travelling as a passenger or crew member; and/or (b) exposure of the Insured Person to the elements as a result of such happening or occurrence. AIRCRAFT "Aircraft" means an aircraft on the civil aircraft register of any nation but does not include any aircraft (whether on a civil register or not) operated by a military force or engaged in any military activities. BODILY INJURY "Bodily Injury" means external and visible injury to the person which: (a) is sustained by the Insured Person within the geographical limits stated in the Coverage Schedule; and (b) is caused by an accident; and (c) solely and independently of any other cause, except illness directly resulting from, or medical or surgical treatment rendered necessary by, such injury, occasions the death or disablement of the Insured Person within twelve calendar months from the date of the accident by which such injury is caused. DEATH "Death" shall include disappearance of the Insured Person if we are satisfied at our sole discretion at the expiration of one calendar year from the date of disappearance that the Insured Person is probably no longer living. EMBARKING and DISEMBARKING "Embarking" commences when the Insured Person sets foot on any steps or any part of the aircraft for the purpose of entering the aircraft and ceases when the Insured Person becomes seated or otherwise accommodated in the aircraft. "Disembarking" commences when the Insured Person rises from his or her seat or other accommodation in the aircraft for the purpose of exiting from the aircraft and ceases when the Insured Person first sets foot upon the ground, any airport building or any aerobridge after passing through the aircraft door or hatch, whichever first occurs. INSURED PERSON "Insured Person" means the person or each of the persons named under that heading in the Coverage Schedule. LOSS OF LIMB "Loss of Limb" means loss by physical separation of a hand at or above the wrist or of a foot at or above the ankle. MEDICAL EXPENSES "Medical Expenses" means expenses properly incurred by you in respect of the Insured Person for professional medical, surgical, manipulative, massage, therapeutic or nursing services including the cost of medical supplies, X-rays and ambulance hire, but excluding amounts recoverable from MediCare, Medical or Hospital Benefits Associations, Societies or Companies or from any other insurance or Government health insurance plan and excluding payments in respect of which insurance is prohibited by the (Commonwealth) Health Insurance Act 1973 and/or other legislation. OPERATIONAL LEGISLATION "Operational Legislation" means all provisions in force from time to time of the Air Navigation Act, Civil Aviation Act, Air Navigation Regulations, Civil Aviation Regulations, Air Navigation Orders, Civil Aviation Orders and orders, requirements, notices, directions, circulars and approvals issued by the Civil Aviation Authority, the Department of Transport and Communications or by any other competent authority or by equivalent authorities in respect of foreign registered aircraft. POLICY PERIOD OF COVER "Policy period of cover" means the period so identified on the Coverage Schedule or such lesser period of cover which is stated in the Coverage Schedule, or any endorsement, in respect of any particular Insured Person. PERMANENT TOTAL DISABLEMENT "Permanent Total Disablement" means disablement lasting twelve calendar months which at the expiry of that period is beyond hope of improvement and which would prevent the Insured Person engaging in each and every occupation or employment for wage or profit for which he or she is reasonably qualified by training, education or experience. TEMPORARY PARTIAL DISABLEMENT "Temporary Partial Disablement" means disablement which prevents the Insured Person from engaging in a substantial part of his or her usual occupation or employment or, if he or she has no occupation or employment, from attending to a substantial part of his or her usual affairs. TEMPORARY TOTAL DISABLEMENT "Temporary Total Disablement" means disablement which entirely prevents the Insured Person from engaging in his or her usual occupation or employment or, if the Insured Person has no occupation or employment, from attending to his or her usual affairs. AUSTRALIA "Australia" means the Commonwealth of Australia but NOT including Australian Antarctic Territory, Macquarie Island, Territory of Heard Island and McDonald Islands or territorial waters adjacent thereto. Section 3: YOUR PERSONAL ACCIDENT COVER 1. If cover is stated in the Coverage Schedule as being limited to Flight Risk Only and if during the Policy period of cover, whilst piloting or travelling as a passenger or crew member is an aircraft or in the course of embarking or disembarking, the Insured Person suffers bodily injury which directly results in one of the Events against which a sum assured appears in the Schedule of Compensation, we will pay to you the relevant amount stated in the Schedule of Compensation. Our liability under this paragraph is subject to paragraphs 3-9 (inclusive) below. 2. If cover is stated in the Coverage Schedule as NOT being limited to Flight Risk Only, and if during the Policy period of cover the Insured Person suffers bodily injury directly resulting in one of the Events against which a sum assured appears in the Schedule of Compensation, we will pay to you the relevant amount stated in the Schedule of Compensation. Our liability under this paragraph is subject to paragraphs 3-9 (inclusive) below. 3. If a sum assured appears against Temporary Total Disablement or Temporary Partial Disablement in the Schedule of Compensation, in addition to any payment we may make under paragraph 1 or 2 in respect of such Events, we will reimburse you for medical expenses you have actually paid in respect of the Insured Person up to but not exceeding fifteen percent of the total amount we pay for such Temporary Total Disablement or Temporary Partial Disablement. 4. In respect of bodily injury arising from any one accident, we are only liable to pay the weekly compensation stated in the Schedule of Compensation, in respect of Temporary Total Disablement or Temporary Partial Disablement for the maximum number of weeks stated in the Coverage Schedule. 5. We are only liable to pay you one of the amounts stated in the Schedule of Compensation as a result of any one accident and/or bodily injury. That one amount shall be the greatest applicable amount stated in the Schedule of Compensation. However, if we make payment for Temporary Total Disablement, we will also make payment in respect of any period of Temporary Partial Disablement immediately preceding or following the period of Temporary Total Disablement and arising from the one accident and/or bodily injury, subject to paragraph 4 of this Section. 6. If we make payment to you for Permanent Total Disablement of the Insured Person we shall deduct from the amount of such payment any weekly or other payments we have made under this Policy for Temporary Disablement and/or Temporary Partial Disablement. 7. If the Insured Person suffers more than one bodily injury during the Policy period of cover, we will not be liable to pay claims totalling more than the largest amount appearing against any of the Events stated in the Schedule of Compensation. 8. If this Policy provides cover for weekly compensation and medical expenses and the Insured Person dies, we shall only pay weekly compensation and medical expenses (subject to paragraph 4 of this Section) up to the date the Insured Person dies. 9. If: (a) a sum assured appears against "Death" in the Schedule of Compensation; and (b) we make payment under this Policy as a result of the disappearance of the Insured Person; and (c) the Insured Person is subsequently found to be living; all moneys paid by us shall immediately be repaid by you and/or any other persons to whom such moneys were paid. Section 4: WHAT WE DO NOT COVER 1. You are not covered for bodily injury of the Insured Person due to or arising from illness or disease or surgical or other treatment not related to or rendered necessary by an accident. 2. War, Hijacking and Other Political Perils You are not covered for bodily injury of the Insured Person directly or indirectly caused by or arising out of: (a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power; (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; (c) Hijacking or any unlawful seizure or wrongful exercise of control of an aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting with the knowledge and/or consent of the Assured and/or the Insured Person. 3. You are not covered for bodily injury of the Insured Person resulting from or consequent upon: (a) the Insured Person engaging in or taking part in: (i) naval, military or air force service or operations; (ii) hunting, football, boxing, wrestling, racing of any kind other than on foot, polo, water skiing, underwater activities, mountaineering or snow or ice sports; (iii) parachuting or hang-gliding; (b) the use of an aircraft for: (i) pylon racing; (ii) record attempts or speed trials; (iii) aerial seeding or fertilization, dusting, spraying or baiting; (iv) hunting or shooting; (v) mustering, fish spotting, or feral animal control; (vi) low flying (other than in accordance with operational legislation) or any other form of flying involving abnormal hazards (other than (i)-(v) above; (vii) experimenting with or testing new parts (other than replaced similar parts), new devices, new designs or new aircraft types; (c) the presence of the Insured Person, as a pilot or person in control of or passenger in, a balloon, hot air airship, gyrocopter, gyroplane, gyroglider, parasail, powered parachute, weight shift controlled aeroplane, motorised hang-glider, ultralight aircraft, superlight aircraft, microlight aircraft, minimum aircraft (whether fitted with an engine or not) or an aeroplane to which the provisions of Civil Aviation Orders 95:10 and/or 95:55 apply. 4. You are not covered for bodily injury of the Insured Person resulting from or occurring in the course of: (a) suicide or attempted suicide or intentional self-injury by the Insured Person ; (b) deliberate or voluntary exposure by the Insured Person to exceptional danger (except in an attempt to save human life); (c) the Insured Person's own criminal act (whether such act is done intentionally, recklessly, negligently or inadvertently). 5. You are not covered for bodily injury of the Insured Person: (a) caused or contributed to by the Insured Person being affected (temporarily or otherwise) by alcohol or drugs; (b) sustained whilst the Insured Person is in a state of insanity; (c) consequent on the aggravation or acceleration of any pre-existing physical defect or infirmity of the Insured Person. 6. Radioactive Contamination You are not covered for bodily injury of the Insured Person directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity. Section 5: ESSENTIAL TERMS 1. We are not liable to make any payment to you unless you observe and fulfil all the Essential Terms of this Policy and any other obligations imposed on you by this Policy (including any endorsement). 2. If you or the Insured Person are or is piloting an aircraft, that aircraft must be registered, have a valid Certificate of Airworthiness and be airworthy at the commencement of each flight. You and the Insured Person shall comply with all operational legislation. 3. If there is any change in the circumstances, magnitude or nature of any of the risks covered by this Policy after this Policy is in force or if the Insured Person shall engage in any occupation or activity in which he or she will be at greater risk of bodily injury, you must give our Agent immediate notice of the change of circumstances or occupation. We are not liable for any claim arising after such a change unless our Agent has been notified of the change and we have accepted it. 4. You must immediately give to our Agent notice and a full and truthful written description of: (a) any accident which causes or may cause bodily injury to the Insured Person; and/or (b) death or disappearance of the Insured Person. You must also immediately give to our Agent a copy of any letter, medical or death certificate, writ, summons or statement of claim you receive relating to any bodily injury or any accident causing such bodily injury. 5. You and the Insured Person must immediately on the occurrence of bodily injury to the Insured Person take any action that is necessary to place the Insured Person under the care of a legally qualified medical practitioner. 6. You and the Insured Person shall not do anything to harm our interests and shall assist us and our Agent in any way we or our Agent reasonably require. In no circumstances will we be liable to make payment under this Policy unless any medical advisers appointed by us or our Agent for the purpose are allowed to examine the Insured Person as often as we or our Agent consider necessary. 7. You and the Insured Person must be honest in all your dealings with us, our Agent and any assessor or medical practitioner appointed by our Agent. If you or the Insured Person or any person acting on your or the Insured Person's behalf is not honest in making a claim, whether as regards amounts or otherwise, we are not liable in respect of this claim. 8. We may cancel this Policy on any of the grounds set out in section 60 of the Insurance Contracts Act 1984 by giving notice in writing of the proposed cancellation to you either personally or by post to your last address known to us. Such notice shall have effect to cancel this Policy at 4.00 p.m. on the third business day after the day on which the notice was given to you or at any later time specified in the notice. If we cancel this Policy, we will return in respect of the unexpired period of cover a pro rata portion of the premium. In the event of cancellation by you, the premium shall be adjusted on the basis of our receiving or retaining the customary short term premium charged by our Agent, details of which will be provided upon request. You are not entitled to a return of premium if any moneys have been paid or are payable by us under this Policy. 9. This Policy shall be construed according to the laws in force from time to time of the State or Territory of Australia stated in the Coverage Schedule.