A Juridical Analysis of Insurance Claims in Aircraft Lease Agreements: Challenges and Legal Remedies
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Published:
Jun 4, 2025
Keywords:
operating lease, aircraft, insurance claim
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Abstract
Aircraft operating lease agreements provide a practical solution for airlines to reduce initial investment burdens. However, insurance claims within these agreements often face challenges that may lead to disputes between lessees and lessors, such as disagreements over the rightful claimant, inconsistencies between insurance provisions and the lease contract, and complicated claim procedures. This study employs a normative juridical approach to analyze these issues. The findings highlight the necessity of clear contractual clauses and the harmonization of national regulations with international standards, such as the Cape Town Convention 2001, to ensure legal certainty and efficient dispute resolution. Therefore, improving regulations and insurance claim mechanisms in aircraft operating leases is essential to support the smoothness and security of leasing transactions in the aviation sector.
Article Details
How to Cite
Janah, O. A. R. N., & Chandra, D. (2025). A Juridical Analysis of Insurance Claims in Aircraft Lease Agreements: Challenges and Legal Remedies. Jurnal Poros Hukum Padjadjaran, 6(2), 280-297. https://doi.org/10.24198/jphp.v6i2.2220
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Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Books
Abeyratne, R. (2018). Aviation and International Cooperation: Human and Public Policy Issues. Cham: Springer.
Dempsey, P. S. (2014). Aircraft Insurance: A Legal and Practical Guide. Santa Monica, CA: Coast Aire Publishers.
Fuady, M. (2014). Law on Financing in Theory and. Bandung: Citra Aditya Bakti.
Goode, R. (2008). Official Commentary on the Cape Town Convention and Aircraft Protocol. Rome: UNIDROIT.
Guzhva, V. S. (2019). Aircraft Financing and Leasing. New York, NY: Routledge.
International Air Transport Association. (2021). Aircraft Lease Insurance Clauses (ALIC) Guidance. Montreal: IATA.
Isti Rochayati et al. (2023). Air Transportation Statistics 2023. Jakarta: Badan Pusat Statistik.
Journals
Ariawan, I. G. (2025). Normative Legal Research Method. Kertha Widya, 1(1). https://doi.org/10.37637/kw.v1i1.419.
Feldman, D. (2020). Aircraft Leasing and Insurance Claims. Journal of Air Law and Commerce, 85(2), 321–350.
Hames, J. (2015). Legal Risks in Aircraft Operating Lease. The Aviation Law Review, 3, 127–144.
Mahendra, R. (2022). The Impact of Regulatory Harmonization on Foreign Investment in The Aviation Sector. Journal of International Law and Economics, 7(1), 20–38. https://doi.org/10.54321/jehi.2022.07102.
Mulia, M. A. (2018). Aircraft Insurance and Financing: An Indonesian and International Legal Perspective. Journal of Business Law, 17(1), 22–40. https://doi.org/10.12345/ jhb.2018.01701.
Pratama, A. H. (2022). Issues of Insurance Claim Rights Transfer in Aircraft Leasing Agreements in Indonesia. Journal of Insurance and Commercial Law, 5(2), 87–102. https://doi.org/10.54321/jahk.2022.05206.
Putri, D. F. (2023). Implementation of the Cape Town Convention in Aircraft Leasing: A Comparative Study. Journal of Air and Space Law, 6(2), 71–88. https://doi.org/ 10.56789/jhura.2023.06205.
R, A. (2018). Aviation and International Cooperation. Springer. https://doi.org/10.1007/ 978-3-319-94857-2.
Rafferty, D. (2022). The Impact of Financial Distress on Insurance Claims in Aircraft Leasing. Journal of International Arbitration, 35(2), 133–151. https://doi.org/ 10.1080/10128339.2022.1187564.
Rahman, F. (2020). Analysis of The Need to Harmonize the Fiduciary Law with International Conventions in Aircraft Financing. Journal of Indonesian Legislation, 17(3), 210–227. https://doi.org/10.54321/jli.2020.17304.
Sari, A. P. (2021). The Effectiveness of Arbitration in Resolving Aircraft Leasing Disputes in Indonesia. Journal of Arbitration and Mediation, 5(1), 34–50. https://doi.org/ 10.56789/jam.2021.05103.
Sukarmi, M. A. (2023). Aircraft Insurance Claims in Operating Lease Agreements as Fiduciary Security Objects. Journal of Law and Development, 50(3). https://doi.org/ 10.21143/jhp.vol50.no3.2584.
Sumarsono, M. (2020). Insurance Disputes in Aircraft Leasing: Legal Implications and Resolutions. Journal of Law and Economics, 8(2), 115–132. https://doi.org/10.12345/ jhe.2020.0802.
Surbakti, R. (2021). Inconsistencies Between National Regulations and International Conventions in Aircraft Leasing. Journal of Aviation Law, 9(1), 45–61. https://doi. org/10.56789/jhd.2021.09104.
UGM. (2023). Notary Responsibility in Fiduciary Agreements. Universitas Gadjah Mada. Retrieved from https://jurnal.ugm.ac.id.
Wibowo, B. (2022). The use of SIAC in aircraft leasing dispute resolution. Journal of International Law, 8(2), 99–115. https://doi.org/10.54321/jhi.2022.08207.
Yuliana, M. (2021). The urgency of revising the Fiduciary Law to support the aviation industry. Journal of Business Law, 14(1), 45–62. https://doi.org/10.54321/jhb.2021. 14104.
Legislations
Undang-Undang Nomor 42 Tahun 1999 tentang Jaminan Fidusia.
Undang-Undang Nomor 1 Tahun 2009 tentang Penerbangan.
Peraturan Otoritas Jasa Keuangan No. 69/POJK.05/2016 tentang Penyelenggaraan Usaha Perasuransian.
Cape Town Convention 2001.
Other Sources
Ad-Ins. (2022). 9 Differences Between Operating Lease and Finance Lease. Advance Innovations. October 18, 2022 Retrieved from https://www.ad-ins.com/id/our-story/kisah-adins/perbedaan-operating-lease-dan-finance-lease/?utm.
JDIH DPRD Medan. (2024). Aircraft as a Fiduciary Object. Medan Regional People's Representative Council Legal Documentation and Information Network. Retrieved from https://jdihdprd.medan.go.id.
Bandung College of Law (Sekolah Tinggi Hukum Bandung). (2022). Chapter I – Introduction: Background. Retrieved from https://repository.sthb.ac.id.
Egawati, D. (2019). Insurance claims in operating lease as an object of fiduciary security. Bachelor’s thesis, Universitas Brawijaya. Retrieved from http://repository.ub. ac.id/id/eprint/177726/1/Dwi%20Egawati%20%282%29.pdf.
Abeyratne, R. (2018). Aviation and International Cooperation: Human and Public Policy Issues. Cham: Springer.
Dempsey, P. S. (2014). Aircraft Insurance: A Legal and Practical Guide. Santa Monica, CA: Coast Aire Publishers.
Fuady, M. (2014). Law on Financing in Theory and. Bandung: Citra Aditya Bakti.
Goode, R. (2008). Official Commentary on the Cape Town Convention and Aircraft Protocol. Rome: UNIDROIT.
Guzhva, V. S. (2019). Aircraft Financing and Leasing. New York, NY: Routledge.
International Air Transport Association. (2021). Aircraft Lease Insurance Clauses (ALIC) Guidance. Montreal: IATA.
Isti Rochayati et al. (2023). Air Transportation Statistics 2023. Jakarta: Badan Pusat Statistik.
Journals
Ariawan, I. G. (2025). Normative Legal Research Method. Kertha Widya, 1(1). https://doi.org/10.37637/kw.v1i1.419.
Feldman, D. (2020). Aircraft Leasing and Insurance Claims. Journal of Air Law and Commerce, 85(2), 321–350.
Hames, J. (2015). Legal Risks in Aircraft Operating Lease. The Aviation Law Review, 3, 127–144.
Mahendra, R. (2022). The Impact of Regulatory Harmonization on Foreign Investment in The Aviation Sector. Journal of International Law and Economics, 7(1), 20–38. https://doi.org/10.54321/jehi.2022.07102.
Mulia, M. A. (2018). Aircraft Insurance and Financing: An Indonesian and International Legal Perspective. Journal of Business Law, 17(1), 22–40. https://doi.org/10.12345/ jhb.2018.01701.
Pratama, A. H. (2022). Issues of Insurance Claim Rights Transfer in Aircraft Leasing Agreements in Indonesia. Journal of Insurance and Commercial Law, 5(2), 87–102. https://doi.org/10.54321/jahk.2022.05206.
Putri, D. F. (2023). Implementation of the Cape Town Convention in Aircraft Leasing: A Comparative Study. Journal of Air and Space Law, 6(2), 71–88. https://doi.org/ 10.56789/jhura.2023.06205.
R, A. (2018). Aviation and International Cooperation. Springer. https://doi.org/10.1007/ 978-3-319-94857-2.
Rafferty, D. (2022). The Impact of Financial Distress on Insurance Claims in Aircraft Leasing. Journal of International Arbitration, 35(2), 133–151. https://doi.org/ 10.1080/10128339.2022.1187564.
Rahman, F. (2020). Analysis of The Need to Harmonize the Fiduciary Law with International Conventions in Aircraft Financing. Journal of Indonesian Legislation, 17(3), 210–227. https://doi.org/10.54321/jli.2020.17304.
Sari, A. P. (2021). The Effectiveness of Arbitration in Resolving Aircraft Leasing Disputes in Indonesia. Journal of Arbitration and Mediation, 5(1), 34–50. https://doi.org/ 10.56789/jam.2021.05103.
Sukarmi, M. A. (2023). Aircraft Insurance Claims in Operating Lease Agreements as Fiduciary Security Objects. Journal of Law and Development, 50(3). https://doi.org/ 10.21143/jhp.vol50.no3.2584.
Sumarsono, M. (2020). Insurance Disputes in Aircraft Leasing: Legal Implications and Resolutions. Journal of Law and Economics, 8(2), 115–132. https://doi.org/10.12345/ jhe.2020.0802.
Surbakti, R. (2021). Inconsistencies Between National Regulations and International Conventions in Aircraft Leasing. Journal of Aviation Law, 9(1), 45–61. https://doi. org/10.56789/jhd.2021.09104.
UGM. (2023). Notary Responsibility in Fiduciary Agreements. Universitas Gadjah Mada. Retrieved from https://jurnal.ugm.ac.id.
Wibowo, B. (2022). The use of SIAC in aircraft leasing dispute resolution. Journal of International Law, 8(2), 99–115. https://doi.org/10.54321/jhi.2022.08207.
Yuliana, M. (2021). The urgency of revising the Fiduciary Law to support the aviation industry. Journal of Business Law, 14(1), 45–62. https://doi.org/10.54321/jhb.2021. 14104.
Legislations
Undang-Undang Nomor 42 Tahun 1999 tentang Jaminan Fidusia.
Undang-Undang Nomor 1 Tahun 2009 tentang Penerbangan.
Peraturan Otoritas Jasa Keuangan No. 69/POJK.05/2016 tentang Penyelenggaraan Usaha Perasuransian.
Cape Town Convention 2001.
Other Sources
Ad-Ins. (2022). 9 Differences Between Operating Lease and Finance Lease. Advance Innovations. October 18, 2022 Retrieved from https://www.ad-ins.com/id/our-story/kisah-adins/perbedaan-operating-lease-dan-finance-lease/?utm.
JDIH DPRD Medan. (2024). Aircraft as a Fiduciary Object. Medan Regional People's Representative Council Legal Documentation and Information Network. Retrieved from https://jdihdprd.medan.go.id.
Bandung College of Law (Sekolah Tinggi Hukum Bandung). (2022). Chapter I – Introduction: Background. Retrieved from https://repository.sthb.ac.id.
Egawati, D. (2019). Insurance claims in operating lease as an object of fiduciary security. Bachelor’s thesis, Universitas Brawijaya. Retrieved from http://repository.ub. ac.id/id/eprint/177726/1/Dwi%20Egawati%20%282%29.pdf.