No one will ever know when mankind first tried to fly, but it is clear that man envied the gift given by nature to the animal kingdom, that is, the ability to fly. Very large sums are invested in modern aircraft and their operation. The modern airliners cost large sums. Hence, if compensation for death or injury has to assessed, this may run to a much larger sums. Even a small private aircraft may be the cause of a mid-air collision with similar financial consequences. The failure of a component manufactured by a small company may result in the loss of a fully loaded airliner. Because such catastrophic loss may arise it is normal for aviation risks to be excluded from many kinds of general insurance policy.
It has been realized that an increase in speed from 60 m.p.h. to an estimated 1800 m.p.h. in respect of the new supersonic aircraft, together with their ever-increasing costs would reveal the amount of money that air-operators, manufacturers and financial enterprises are investing in the aircraft industry and in civil air transport, and would emphasize the fact that each and every individual company or enterprise could not afford to lose the whole, or even a part, of their capital as a result of accident or misfortune. That is why the idea of spreading the risk by insurance is regarded as inevitable, and why aviation insurance enterprises, as well as new ventures, have been constituted and actively continued.