Helicopter flight instruction and rental aggreements

[shotzy]

I am looking for a school to start my training for flying. And I have narrowed it down to the instructer and school. They want me to sign a flight instruction and rental agreement. Which is fine and I expected this. Most of the contract is fine but it has some sections that are a concern for me.

 

These are the sections

 

12. In the event the Rotorcraft is damaged or otherwise unable to return to normal service, due to pilot error, I will do all reasonably necessary to protect it from further loss, and I agree to pay the cost of repair and diminution in value, if any. I will pay for all uninsured damage to the Rotorcraft while it is leased to me.

 

There is no mention of them having to keep the insurance. So if the company fails to keep there insurance, lets say by not paying the premiums and something happens. Or decides to save money not to have enough insurance to cover an accident. I could be liable for the whole cost of the helicopter.

 

14. If I am unable to return the Rotorcraft due to weather, malfunction, illness or other reason, I agree to pay all costs incurred in returning the Rotorcraft to TRAINING ACADEMY, and will notify TRAINING ACADEMY immediately. I will also pay a minimum of three (3) hours per day for each day that the Rotorcraft is secured at a remote location.

 

I understand if it is my fault. But if we have a mechanical failure while training, it is my responsibility to pay to get the heli back?

 

 

15. If the Rotorcraft is seized or forfeited as a result of the violation of any law or regulation, I will pay TRAINING ACADEMY an amount equal to three (3) hours per day rental for the Rotorcraft at the current hourly rate for each day the Rotorcraft is so held or until I have paid to the TRAINING ACADEMY the fair market value of the Rotorcraft as of the time of seizure; provided, however, that I must pay the fair market value of the Rotorcraft (as of the time of seizure) to TRAINING ACADEMY in the event that the Rotorcraft is not released by the seizing authority within 120 days following seizure. I also agree to pay all reasonable attorney’s fees and expenses incurred by TRAINING ACADEMY in its attempts to recover said Rotorcraft. Upon payment of the fair market value of the Rotorcraft (as of the time of seizure) to TRAINING ACADEMY, I will receive an assignment of the Rotorcraft’s owner’s rights and interest in the Rotorcraft

 

So if I land the helicopter at an airport and the sherriff seizes it because the company didnt pay its taxes. I am responsible for the full value of the helicopter? I could understand if it got seized because of MY actions.

 

So do you think I am over reacting?

 

Is this standard in all contracts at every school?

[rick1128]

I am looking for a school to start my training for flying. And I have narrowed it down to the instructer and school. They want me to sign a flight instruction and rental agreement. Which is fine and I expected this. Most of the contract is fine but it has some sections that are a concern for me.

 

These are the sections

 

12. In the event the Rotorcraft is damaged or otherwise unable to return to normal service, due to pilot error, I will do all reasonably necessary to protect it from further loss, and I agree to pay the cost of repair and diminution in value, if any. I will pay for all uninsured damage to the Rotorcraft while it is leased to me.

 

There is no mention of them having to keep the insurance. So if the company fails to keep there insurance, lets say by not paying the premiums and something happens. Or decides to save money not to have enough insurance to cover an accident. I could be liable for the whole cost of the helicopter.

 

14. If I am unable to return the Rotorcraft due to weather, malfunction, illness or other reason, I agree to pay all costs incurred in returning the Rotorcraft to TRAINING ACADEMY, and will notify TRAINING ACADEMY immediately. I will also pay a minimum of three (3) hours per day for each day that the Rotorcraft is secured at a remote location.

 

I understand if it is my fault. But if we have a mechanical failure while training, it is my responsibility to pay to get the heli back?

 

 

15. If the Rotorcraft is seized or forfeited as a result of the violation of any law or regulation, I will pay TRAINING ACADEMY an amount equal to three (3) hours per day rental for the Rotorcraft at the current hourly rate for each day the Rotorcraft is so held or until I have paid to the TRAINING ACADEMY the fair market value of the Rotorcraft as of the time of seizure; provided, however, that I must pay the fair market value of the Rotorcraft (as of the time of seizure) to TRAINING ACADEMY in the event that the Rotorcraft is not released by the seizing authority within 120 days following seizure. I also agree to pay all reasonable attorney’s fees and expenses incurred by TRAINING ACADEMY in its attempts to recover said Rotorcraft. Upon payment of the fair market value of the Rotorcraft (as of the time of seizure) to TRAINING ACADEMY, I will receive an assignment of the Rotorcraft’s owner’s rights and interest in the Rotorcraft

 

So if I land the helicopter at an airport and the sherriff seizes it because the company didnt pay its taxes. I am responsible for the full value of the helicopter? I could understand if it got seized because of MY actions.

 

So do you think I am over reacting?

 

Is this standard in all contracts at every school?

 

While this appears to be a fairly standard rental agreement, I would ask for clarification of the parts that are causing you concerns. After the Silver State events, these questions are not unreasonable. At the school I attended, during dual flights, the rental agreement, didn't have any effect as the helicopter was in the control of an agent of the company.

[apiaguy]

you're over reacting. The contract seems straight forward.... just making sure you understand you are partly liable while operating the aircraft.

[Tom22]

I would consult an attorney because some of this sounds shady. I wouldn’t rent a aircraft unless their insurance covered the wreck and any lawsuit especially at a flight school. Proper insurance is an added service that the school should provide. The insurance at the place I fly covers the wreck and lawsuit if there is any damage to property, injuries, or death up to 1 million dollars. Just make sure you know what you are getting into before signing.

 

There are some situations when renting that you would want to purchase renters insurance. For example, if you are a member of a flying club and renting an aircraft. You can purchase renters insurance at a reasonable rate though the AOPA if you are a member. Maybe this is your situation if you really want to fly at this school.

[rick1128]

I would consult an attorney because some of this sounds shady. I wouldn’t rent a aircraft unless their insurance covered the wreck and any lawsuit especially at a flight school. Proper insurance is an added service that the school should provide. The insurance at the place I fly covers the wreck and lawsuit if there is any damage to property, injuries, or death up to 1 million dollars. Just make sure you know what you are getting into before signing.

 

There are some situations when renting that you would want to purchase renters insurance. For example, if you are a member of a flying club and renting an aircraft. You can purchase renters insurance at a reasonable rate though the AOPA if you are a member. Maybe this is your situation if you really want to fly at this school.

 

Tom,

 

Most flight schools want you to carry renters insurance to cover the deductible. However this one sounds like the owner may have had some problems in the past or an attorney that tends to put more into such an agreement than is normal.

 

As for AOPA renters insurance, I looked into it when I was working on my helicopter commercial. AOPA program doesn't cover multi-engine or HELICOPTERS. And the only program I found was so expensive, it was cheaper to cover the deductible on my own.

[Goldy]

I wouldn’t rent a aircraft unless their insurance covered the wreck and any lawsuit especially at a flight school. Proper insurance is an added service that the school should provide. The insurance at the place I fly covers the wreck and lawsuit if there is any damage to property, injuries, or death up to 1 million dollars. Just make sure you know what you are getting into before signing.

 

What about the deductible? Every school I know of requires the PIC to be responsible for the deductible.

 

Everything else looks pretty normal.

[Tom22]

Rick,

 

I take issue with number 12 on shotzy renters agreement. Furthermore, in my statement I mentioned nothing of having to pay a deductible. I have never had to carry renters insurance so my statement about the AOPA was just an idea. I think he is getting the shaft .

[rick1128]

Rick,

 

I take issue with number 12 on shotzy renters agreement. Furthermore, in my statement I mentioned nothing of having to pay a deductible. I have never had to carry renters insurance so my statement about the AOPA was just an idea. I think he is getting the shaft .

 

He may or may not be getting the shaft. Without actually seeing the document he is being asked to sign, it is hard to tell. Paragraph 12 actually contradicts itself. It may have been written by the operator himself. The first part of the first sentence is quite reasonable. But you would be surprised how many pilots, including so called professional pilots that will not do so. shotzy does need to get clarification of the operator's insurance. Flight schools pay outrageously high premiums for the very reason that students have accidents. It may be that the operator self insures. If he does, shotzy needs to find another school.

Edited March 28, 2008 by rick1128

[Node]

True, without seeing the document, its hard to tell. I looked into renters insurance after hearing about a couple of fix wing guys that had to pay a few thousand for deductibles after tagging the wing while taxiing. As I found out renters insurance for heli's is pretty expensive so good luck. Some schools offer a sort of self insurance. You pay something like $500-700 and then they cover the deductible. They figure that if enough students sign up for it it will cover the deductible expense if it happens. Good investment if they offer it. Just make sure you understand everything before signing. From what I can tell it doesn't really sound all that out there.

[shotzy]

True, without seeing the document, its hard to tell. I looked into renters insurance after hearing about a couple of fix wing guys that had to pay a few thousand for deductibles after tagging the wing while taxiing. As I found out renters insurance for heli's is pretty expensive so good luck. Some schools offer a sort of self insurance. You pay something like $500-700 and then they cover the deductible. They figure that if enough students sign up for it it will cover the deductible expense if it happens. Good investment if they offer it. Just make sure you understand everything before signing. From what I can tell it doesn't really sound all that out there.

 

Thank you very much for all of you responses. This board is a great resource for new pilots.

 

I dont mind being responsible for a deductible, If I know what it is and it is clearly spelled out. Because at that point I can make a responsible financial decision based on facts. Section 12 is the only place in the agreement that mentions anything about insurance or damage liability. And no where in the document does it mention that the school will keep any insurance.

 

I wouldn't drive my car without the proper level of insurance. So I am certainly not going to learn how to fly a helicopter without it. I am going to speak to the owner and have him add to the contract what he will keep for insurance and see if its any better. I will keep you informed

 

Thanks again.

[lwalling]

Thank you very much for all of you responses. This board is a great resource for new pilots.

 

I dont mind being responsible for a deductible, If I know what it is and it is clearly spelled out. Because at that point I can make a responsible financial decision based on facts. Section 12 is the only place in the agreement that mentions anything about insurance or damage liability. And no where in the document does it mention that the school will keep any insurance.

 

I wouldn't drive my car without the proper level of insurance. So I am certainly not going to learn how to fly a helicopter without it. I am going to speak to the owner and have him add to the contract what he will keep for insurance and see if its any better. I will keep you informed

 

Thanks again.

 

I would require the owner to document the deductible, expect it to be very high though - something like 10% of hull value rotors spinning. I took the risk on my renting, and "self insured" not bothering to buy a policy. Base it on your confidence and general ability in the ship - if you fear rough landings ahead, hunt up some supplemental rental insurance (no idea on that one on helicopters though).