Our Bureau
Mumbai
The horrific crash of the Air India flight AI 171, a Boeing 787-8 Dreamliner on Thursday, June 12th is right on the way to become India’s most expensive aviation claims. The liabilities through this case can range from $211 million to as high as $288 million that is equivalent to somewhere around Rs. 2400 crore.
The Chairman and Managing Director of General Insurance Corporation of India, Ramaswamy Narayanan stated that any airline’s fleet insurance policy basically covers risks along the lines of the aircraft hulls, spare parts and the liabilities to passengers and third parties. But the damages caused through the Ahmedabad crash are expected to bring out more claims as they will be on all three of those bases. This is because of the total damage caused to the aircraft along with the total fatalities due to the tragic incident.
Amit Agarwal who is the Chief Executive Officer and Managing Director of Howden India stated that he believes that this incident will churn out more claims as it will affect multiple categories of aviation hull all-risk policy. He also pointed out the valuation of the aircraft and how much will it be insured for as of now
He said, “This incident is likely to trigger multiple aspects of a typical aviation hull all-risk policy. Aircraft damage would be covered under the aviation hull all-risk section, which insures the current valuation of the aircraft, including spares and equipment.”
As per his estimation, Mr. Agarwal stated, “For a Dreamliner, depending on its configuration, age, and other factors, this value can range between $211 million and $280 million. The aircraft involved (VT-ABN) was a 2013 model and was insured for approximately $115 million in 2021, based on available information.”
He added, “Whether the damage is partial or total, the loss would be covered based on the value declared by the airline. Airlines also typically purchase an add-on hull war risk cover, which is triggered if the loss results from a terrorist act or war-related event. In such cases, the loss would be covered under the hull war section.”
Amidst all this, the Tata group has announced that they will be compensating the families of all those who lost their lives in the tragic flight. They have announced that they will be providing Rs. 1 crore to all the families who lost a loved one in the plane crash.
