Air India has announced financial assistance for the families of those who died in the Ahmedabad plane crash. The airline will also need to pay for rebuilding the buildings that were destroyed in the accident.
The crash, which occurred on June 12 in Ahmedabad, left a deep impact. It not only killed the passengers on board but also claimed the lives of people on the ground where the debris fell.
Along with announcing compensation for the victims’ families, Air India is also responsible for covering the cost of rebuilding the damaged buildings.
However, insurance companies will assist Air India in managing these expenses. Let’s look at some key questions about how insurance works in such cases.
What Is the Process for Claiming Insurance After a Major Plane Crash?
To receive compensation, victims or their families must file a claim with the insurance company. The company will only pay once the claim is submitted.
The families will need to contact Air India or the insurer and provide documents like the death certificate, identity proof, and flight ticket details.
Once the claim is submitted, the processing time can range from a few weeks to a few months.
How Are Airplanes Insured?
Airlines usually take “hull insurance” for their aircraft. This insurance covers the body, engine, and other parts of the plane.
Air India’s Boeing 787-8 was insured for about $150 to $200 million.
Indian insurance companies rarely cover such large amounts on their own. Instead, they form a consortium with foreign insurers to share the risk.
How Will the Families of the Deceased Passengers Be Compensated?
When passengers die in a plane crash, they are covered under “Passenger Legal Liability Insurance.”
This is part of the Montreal Convention, which is a global rule for air travel. Under this, Air India can pay about ₹1.75 crore to each victim’s family.
In total, the passenger-related insurance liability in this crash may reach $350 million.
Additionally, the Tata Group has announced ₹1 crore as an ex-gratia payment to each affected family. This is a temporary relief amount, and a final settlement will be made later.
Will Families of the People Who Died on the Ground Also Get Compensation?
Yes, they will. This is covered under “third-party liability insurance.” If a person not on the plane dies or suffers property loss due to a crash, they are entitled to compensation.
In this case, a part of the plane hit a hostel building, causing the death of 38 people. These victims will also receive compensation from the insurance company.
