BENGALURU: Non-life insurers face a pay out of over Rs 400 crore in respect of the Air India Flight 1344 crash at Kozhikode. This comes on the back of claims following cyclone Amphan in Kolkata and recent rains in Mumbai and JNPT which could take weather-related claims to four figures. However, a large chunk of this would be covered under their reinsurance programmes.
The Air India Flight 1344 crash's hull damage alone would cost the insurance industry $50 million (Rs 375 crore). New India sources said this pay out would be irrespective of the outcome of the investigation.
The crash also killed 16
. Under the insurance policy first taken - the per passenger liability was $140,000 (Rs 1 crore). Air India has purchased additional insurance which could cover per passenger liability up to $180,000 (Rs 1.3 crore). Apart from this, Air India's two pilots
also died and are covered under the employee insurance scheme taken by Air India. Total pay out for loss of lives and baggage could be at around Rs 25 crore, said sources.
The extent of liability will include medical costs for the more than 100 persons injured and hospitalised. In the incident, 168 passengers and 4 crew members survived. But these could be future claims the company is liable for - when injured parties file. Currently, the insurers are uncertain as to extent of liability in case of those injured.
Air India had paid $30 million as premium in 2020 for insuring 170 planes in its fleet for $10 billion.
India's flagship airline has also taken a single limit insurance (CSL) policy of $750 million (Rs 5.5 lakh crore) -- which is the combination of owner and passenger liability insurance.