Kathmandu. On June 12, an Air India AI-171 aircraft crashed within two minutes of take-off in Ahmedabad, India. A total of 241 passengers, including crew members, were killed and one was rescued alive. <\/p>\n
At least 34 people were killed when the plane crashed into a residential building. So far, 275 people have died in this accident. Some of the injured are still undergoing treatment. <\/p>\n
AirAsia’s plane crash has added to the pressure on the global aviation reinsurance market. According to Global Data, the incident related to the first fatal hull damage of the Boeing 787-8 Dreamliner is expected to have a major impact on aviation insurers and reinsurers in India and globally. <\/p>\n
In 2023, India’s domestic aviation insurance direct written premium (DWP) stood at $127.8 million. Global Data analyst Swarup Kumar Sahu said, “Claims from this one incident could potentially exceed the entire annual premium. \u2019<\/p>\n
Indian insurers usually transfer more than 95 per cent of the aviation premium to global reinsurers. Which means the financial burden will be largely on the international players. <\/p>\n
New India Assurance and Tata AIG are the primary insurers involved. However, their risk is limited as flights account for only 1.1 per cent and 1 per cent of their total premiums, respectively. <\/p>\n
Both companies have reinsured most of their aviation risks. State-owned reinsurance company GIC Riley will have to bear a risk of about 5 per cent due to the mandatory discount facility. <\/p>\n
India’s aviation insurance sector has been at a loss due to repeated incidents such as damage to jet airways and SpiceJet-operated aircraft and previous accidents related to Su-30 fighter jets. The Air India crash is expected to put more pressure on the sector. <\/p>\n
The total insurance cost from the accident is estimated to be more than $200 million. These include the cost of the aircraft, which is estimated to be between $75 million and $80 million million, and passenger liability costs under the Montreal Convention and domestic law. <\/p>\n
GlobalData expects the event to reevaluate reinsurance structures and contribute to rate increases in the 2026 renewal cycle. The Indian government is also considering grounding the Boeing 787-8 aircraft. This can lead to claims of disruption in business. This could further damage the profitability of these vulnerable insurers. <\/p>\n
Global data predicts global reinsurance companies will tighten underwriting conditions, raise premiums and reassess risks for wide-body aircraft.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. On June 12, an Air India AI-171 aircraft crashed within two minutes of take-off in Ahmedabad, India. A total of 241 passengers, including crew members, were killed and one was rescued alive. At least 34 people were killed when the plane crashed into a residential building. So far, 275 people have died in this […]<\/p>\n","protected":false},"author":16,"featured_media":257410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-258185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/258185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=258185"}],"version-history":[{"count":0,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/258185\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/257410"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=258185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=258185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=258185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}