As far as I know they aren't insured at all, I think the MOD basically insures itself, the size of the organisation and danger that they are under means that its basically going to be a wash (paying premiums Vs just paying off things that will inevitably get broken). Plus I think there are things that insurace companies won't insure.
MadameConcorde From San Marino, joined Feb 2007, 10502 posts, RR: 38 Reply 8, posted (1 year 5 months 3 days 14 hours ago) and read 4865 times:
I just see that 3 have died in the RAF two Tornado crash!
Tornado crash: three airmen dead as defence cuts blamed for 'tired' pilots
A midair collision between two RAF Tornados claimed the lives of three airmen, the RAF confirmed, amid allegations that air force pilots are "too tired" to fly because of defence cuts.
A pilot and navigator from one of the £40 million jets are missing presumed dead following the crash over the Moray Firth, and an airman who was flown to hospital after the incident died from his injuries.
The fourth serviceman involved in the collision on Tuesday afternoon is in a serious but stable condition at Raigmore Hospital in Inverness.