Kathmandu. Air India flight AI 171 crashed in Ahmedabad, raising insurance claims of up to $150 million (about Rs 20.62 billion). A total of 265 people, including 241 people on board and 24 people living in residential buildings where the plane crashed, were killed in the crash.
According to indian insurance industry sources, most of these insurance claims are likely to be borne by global reinsurance companies. Because aviation policies are often structured in such a way that where the primary insurance company transfers a large part of the risk to the reinsurance company.
These claims will include three types of liabilities: damage to the aircraft, the loss of life of people on board, including the crew, and third-party liability because people died on the spot where the plane crashed. Cargo liability will also be included.
According to experts in the Indian insurance industry, there could be a claim of $ 80 million to $ 100 million for damage to the aircraft. While the death of passengers on the plane, including the crew, and falling to the ground can be claimed to be worth $ 50 million.
According to insurance industry experts, most of these claims will be borne by the reinsurer. Because Indian insurers have reinsurance of most of their risks. Only about 10 per cent of the total claims will have to be borne by Indian insurers and reinsurers.
Air India had taken $20 billion in insurance for its fleet. These include Tata AIG General Insurance, ICICI Lombard General Insurance, New India Insurance and other state-owned general insurance companies. Tata AIG covered 30-40 per cent risk and is the main primary insurer.
These insurance companies had reinsured most of their risk. This reinsurance was done with state-owned GIC Re, Us company AIG and XA XL etc.
Aircraft fleet policies are often reinsuranced. In the case of Air India, a large sum of money will also be borne by the reinsurers. It has been agreed that the cost of the aircraft will be around $ 80 million. However, since the nationality of the passenger always plays an important role in understanding the type of liability, it is always difficult to estimate the liability.
There has also been some damage to the ground. Therefore, it will be the responsibility of the third party. In such cases, the aviation reinsurer reacts very quickly. Their appointed surveyors and lawyers are immediately on the job. They will contact the relatives of the deceased and try to resolve the insurance claim as soon as possible. Still, it’s a long process. This incident will also affect aviation insurance rates.
According to a senior insurance official, aircraft have extensive insurance and primary insurance is reinsurance by global reinsurers. Insurance often includes aircraft damage, death and casualties, as well as crew members and cargo and personal injuries.
Air India’s flight AI171 was a Boeing 787-8 Dreamliner aircraft. Which is one of the most modern passenger aircraft. This is the first case of a Dreamliner accident. It made its first commercial flight in 2011.
An Air India flight crashed in Ahmedabad. The Tata group has already announced a compensation of Rs 1 crore to the families of the deceased. – Agency
