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Aviation Insurance in South Africa: Navigating the Part 43 Shockwave

South Africa’s aviation insurance market faces turbulence as Part 43 enforcement grounds over 1,400 light aircraft, reshaping risk and compliance.
Written by
Carly Ranger
Published on
September 18, 2025
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More than 1,400 type-certified light aircraft registered in South Africa have been affected / grounded due to the enforcement of the 12-year engine overhaul requirement, with knock-on effects across maintenance, training and tourism businesses. For Insurers, operators, and the broader aviation ecosystem, this is not just an operational disruption – it is a stark example of how fragile the aviation industry and aviation insurance market is to regulatory shocks.

South Africa’s aviation insurance industry already operates in a challenging environment. Premiums and capacity are constantly shaped by external forces such as economic fluctuations and rand volatility, global reinsurance dynamics, catastrophic airline losses abroad, supply chain delays in sourcing aircraft parts post-pandemic, geo-political tensions and extreme weather events. These external forces flow directly into the local market, raising costs and tightening underwriting appetites.

In mid-2025 the South African Civil Aviation Authority (SACAA) enforced a long-standing maintenance requirement under Part 43 of the South African Civil Aviation Technical Standards (SACATS). Under the new ruling, any type-certified piston aircraft registered in South Africa and fitted with Teledyne-Continental or Textron-Lycoming engines (with some Rotax / Pratt & Whitney types also affected) must undergo a full engine overhaul at 12 calendar years, regardless of condition and flight hours.

This enforcement led to the constructive grounding of a large portion of the light aircraft fleet currently registered in South African whose engines were beyond 12 years without overhaul. Industry counts vary, but it is estimated that 1,400 light aircraft have been affected, many of which formed the backbone of general aviation (GA) in South Africa – with knock on effects across flight schools, charter operators, agricultural services and aircraft maintenance organisations. In many cases the cost of the mandated overhaul now exceeds the market value of the aircraft itself, leaving operators/ owners with little choice but to mothball or de-register their aircraft.

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"The Part 43 ruling has exposed just how interconnected regulation, operations and insurance are."

Carly Ranger
Infiniti Insurance

Insurance industry underwriters will need to adjust for the sudden systemic regulatory risk. Key implications may include:

  • Increase in credit risk and liquidity strain – Operators / Owners under cash pressure may cancel or reduce hull sums insured, ask for lay-up returns, or default on premium payments, adding credit risk and liquidity strain for insurers and brokers due to the possible contraction of the GA market.
  • Pricing load – Underwriters look to harden rates on older piston aircraft and increase deductibles on ground losses.
  • Shrinking diversification - with many aircraft grounded or abandoned, insurers are left with a smaller pool of policyholders.
  • Claims uncertainty - disputes may arise over whether losses stem from covered perils or regulatory compulsion. Expect stricter scrutiny of maintenance records, Certificate of Airworthiness (CoA) status, logbook entries, and whether flights were conducted post expiry.
  • Airworthiness compliance & policy coverage - aviation policies hinge cover on the aircraft being airworthy and maintained per applicable regulations and manufacturers recommendations. With the calendar-time requirement, an engine beyond 12 years without overhaul risks voiding cover whilst in flight. Policy holders should expect harder wording containing explicit warranties of compliance.

The Part 43 ruling has exposed just how interconnected regulation, operations and insurance are. If the enforcement remains firm the coming months will be decisive: either the industry adapts through collaboration, product innovation and regulatory dialogue, or South Africa could risk a contraction of its general aviation sector That will affect not only insurers, but every person involved in any way in the sector.  

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