Directorate General of Civil Aviation (DGCA) Practice Test 2026 - Free DGCA Practice Questions and Study Guide

The main idea here is that operations must have liability coverage that protects against claims by people or property harmed by the aircraft. Third-party liability insurance provides exactly that: it covers injuries or damage to others who are not part of the operator or crew when an incident occurs during flight or ground operations. This is the minimum insurance typically required to allow an operator to operate, because it addresses the financial risk to outsiders and ensures victims can be compensated without devastating costs to the operator.

Hull insurance, on the other hand, covers damage to the aircraft itself. It protects the asset but is not a regulatory requirement for the act of operating; it’s a risk-management choice for the operator or the lender.

Passenger liability may be included in broader liability coverage, but it isn’t usually a separate, standalone requirement for operation. The key regulatory requirement tends to be third-party liability coverage that protects third parties, rather than a separate passenger-only policy.

Medical insurance for crew or passengers isn’t a standard mandatory requirement for operations from a regulatory standpoint, though it may be provided by some operators for safety or welfare reasons.