Air India crash triggers Rs 4088 crore insurance claim: All details

In one of the major insurance claims to be made in the history of aviation within India, the recent crash involving an Air India Boeing 787 Dreamliner in Ahmedabad, the plane has one of the highest claims amounting to Rs 4088 Crore (Approximately 475 million US dollars). This accident, which involved the loss of more than 240 lives and linked severe damages on the ground, has shocked many in the aviation industry and insurance companies all over the world. The unfortunate Boeing 7878- 8 Dreamliner had 242 passengers and crews on board 169 Indian citizens, 53 British citizens, one Canadian, and seven Portuguese citizens. The flight was destined to London but crashed soon after leaving the Ahmedabad International Airport on June 12. It also left a number of the casualties on ground when it crashed in a doctors hostel near the airport.

With the engine replaced in April this year, the insurance cover on the ill-fated Boeing 787-8 Dreamliner aircraft was increased to Rs 850 crore by Air India, Times of India reported quoting people in the matter. The report further added that the extent of the claims of the plane crash are likely to surpass Rs 1,500 crore. The individuals quoted by the Times of India as the ones providing the information on the rise of the insurance cover of Air India to 850 crores after the engine was replaced are just referred to as simply the sources or the people who are familiar with the issue. These are generally known to be those inside or authority, in the airways or the insurance corporations or the regulation bodies who knew the information but were restricted to talk openly on the record. The report does not mention any individual names or designation as it uses these anonymous insiders to give the information regarding the insurance hike and the projected claims.

Air India, which is owned by Tata Group, has recently stated that they will give the families of the victims, as well as the surviving man, 25 lakh rupees (approximately GBP 21,000) as compensation. This would complement with the Rs 1 crore compensation (roughly GBP 85,000) relief to the family of each individual already notified by Tata Sons. "Air India stands in solidarity with the families of the passengers who tragically lost their lives in the recent accident. Our teams on the ground are doing everything possible to extend care and support during this incredibly difficult time," the airline said in a post on X.

Air India crash: The insurance claim stems from two primary components

The destroyed aircraft and engines are estimated to have a value of approximately approx. Rs 1075 crore. It is under this part of the claim that the insurers are expected to settle first.

The majority payout, approximately Rs 3,014 crores is to be emitted as a liability claim. This is in the form of paying compensation to the families of the dead passengers and third party claims, other personal accident policies and travel insurance policies. Liability claims may further get higher considering that foreign nationals may be amongst the victims where the compensation is also required to withstand legal systems in their countries.

General Insurance Corporation of India (GIC Re), which had issued the insurance to Air India, said that such liabilities will substantially surpass the value of the cargo, and this will become one of the highest insurance claims in aviation of all times in India, in connection with this insurance policy.

Air India crash

The speech of Air India CEO Campbell Wilson after the crash received negative feedback on the Internet, the users accusing it of plagiarising a statement of the American Airlines CEO after a similar disaster in the US. Phrases such as “this is a difficult day for all of us” and “we are actively working with authorities” appeared in both speeches, sparking debate over whether this was standard crisis communication or a lack of originality.

There was a lot of anger among users regarding the magnitude of the tragedy and the demand of responsibility on the part of Air India as well as the aviation officials. The rest were interested in the human tragedy where they expressed their condolences through the victims and their families. Some users have been debating a lot on the amount of payout of the insurance whereby some wonder whether the compensation will be sufficient and within perfect time to the affected families. The accident also has stimulated the national debate about the safety standards within the Indian aviation industry and the practice of insurance.

The Air India crash has not only caused a destruction of human life but also led to the invoking of an insurance claim due to the premium historic and most of it is fueled by the loss of passenger and third party. The event created a heated discussion and investigation on social media, which not only requires an emotional response to the disaster but also raises complicated monetary consequences to the airline and the insurance business.

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