Insurers make full payment of Mangalore crash aircraft claims

Insurers make full payment of Mangalore crash aircraft claims

Mangalore Today News Network

New Delhi, August 16: A consortium of insurers, led by Anil Ambani group’s Reliance General Insurance, has made final payment of USD 20 million (about Rs 90 crore) towards aircraft insurance claims arising from the Mangalore crash in May. 

 
Insurers had previously paid 60 per cent of the total hull losses, which was estimated at USD 50 million (about Rs 230 crore), and Air India has now been paid the balance 40 per cent as the second and last installment, industry sources said.

 

Hull loss liability is different from passenger liability and relates to damage to the aircraft.


The payment which has been completed in a record period of less than three months for such accidents has been made by a consortium led by Anil Ambani group firm Reliance General Insurance and also comprising Bajaj Allianz, Iffco-Tokio and HDFC Ergo.


When contacted, a Reliance General Insurance spokesperson confirmed the payment, but did not divulge further details.

Sources, however, said that Reliance General Insurance’s net liability for this incident was less than Rs 4 crore, only a fraction of total claims, on account of adequate reinsurance cover.

Besides hull loss claims, the insurers have already paid Rs 15 crore towards passenger liability as interim compensation announced by AI soon after the crash of its Air India Express flight from Dubai on May 22.

The final payment towards passenger liability will be completed after assessment by legal firms appointed by airline and insurers, sources said.

Addressing a press conference in Mangalore a day after the tragedy that claimed 158 lives, Air India Chairman and MD Arvind Jadhav announced an interim compensation for the victims of the Mangalore air crash, including Rs 10 lakh for the families of those above 12 years of age.

This interim payment was made pending the final settlement of insurance claims and was separate from the compensation packages announced by the central and state (Karnataka) governments.

The extent of interim compensation was decided by the insurance firms and Air India together, Jadhav had said. 


Courtesy:PTI