Crash likely to trigger claims up to $150 mn for insurers, reinsurers

The crash of the Air India plane in Ahmedabad is expected to result in insurance claims of $130 million-150 million, according to industry insiders.

 

The majority of these claims will likely be borne by global reinsurers because aviation policies are typically structured with primary insurers transferring a significant portion of the risk through reinsurance arrangements.

 

About 10 per cent of the claims are likely to come on the books of Indian insurers and reinsurers, according to industry observers.

 

The claims will include three kinds of liabilities: Damage to the aircraft; loss of lives who were aboard the aircraft; including the