Air India crash could trigger $475 million in claims; insurance cover hiked weeks before
The Air India Boeing 787-8 Dreamliner that crashed near Ahmedabad last week had its insurance cover enhanced by ₹100 crore during its April renewal, just weeks before the fatal incident. The total insurance payout from the crash, which killed 270 people, including 241 onboard, could touch $475 million (around ₹1,500 crore), according to people familiar with the matter, reported TOI.
The aircraft's cover was raised from ₹750 crore to ₹850 crore in April 2025 following an engine replacement, said sources. The aircraft was en route to London Gatwick when it went down in what is now being called the worst wide-body aircraft crash in Asia in recent years.
The bulk of the insurance burden will fall on global reinsurers, with Indian insurers expected to absorb only ₹100–150 crore of the total liability. Over 90% of the risk was reinsured with overseas firms including AIG, AXA XL and other players in the London and Bermuda markets.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Join new Free to Play WWII MMO War Thunder
War Thunder
Play Now
Undo
The insurance policy, led by
Tata AIG General Insurance
, covers Air India's entire fleet and is valued between ₹8,000 and ₹10,000 crore. The annual premium paid by Air India for this policy is reportedly around ₹250 crore. Domestic co-insurers include GIC Re, United India, Oriental Insurance, National Insurance, and
ICICI Lombard
.
The Dreamliner, which has been declared a total loss, was valued at ₹850 crore on an age-adjusted basis. Apart from hull loss, insurers are bracing for large passenger and third-party compensation claims. Under the Montreal Convention, families of the deceased passengers are entitled to payouts of around ₹1.7–1.8 crore each, pushing the total passenger compensation liability alone above ₹420 crore.
Live Events
Experts said this tragedy could have broader implications for the aviation insurance sector, especially for wide-body aircraft operations in Asia. 'This was the first major crash involving a wide-body aircraft in the region. It is likely to harden the global aviation insurance market,' one expert noted.
Meanwhile, the Insurance Regulatory and Development Authority of India (IRDAI) has issued directives to fast-track claims. In a June 14 circular, IRDAI instructed all insurers involved in the crash to submit weekly updates on claims from June 16 onwards. Insurers have also been asked to appoint nodal officers, waive formalities such as FIRs and postmortem reports, and expedite disbursals under life and personal accident policies.
With inputs from TOI
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
12 minutes ago
- The Hindu
Trump's tariffs will offer India certain advantages, says Chief Economic Adviser V. Anantha Nageswaran
The reciprocal tariffs unveiled by U.S. President Donald Trump on April 2 could offer India certain tariff advantages compared to other countries, V. Anantha Nageswaran, Chief Economic Adviser to the Government of India, has said. Dr. Nageswaran was speaking on 'Global economic trends: India's challenges and prospects' at Raj Bhavan here on Tuesday. He said a 90-day 'pause' is on till July 9 with respect to the tariffs, but whatever was announced on April 2 gives India certain advantages, especially in labour-intensive manufacturing areas such as textiles, leather products and chemicals. 'One of the mistakes we all make is looking at the tariffs from only the Indian point of view; 'Oh, now we have a higher tariff!'. But what matters is not just your tariff, it also matters what others face. If your competition is going to face higher tariffs you are at an advantage. And that is what is happening to India in a few areas,' he said. On energy transition, Dr. Nageswaran urged caution against the unbridled injection of solar and wind energy, which are characterised by intermittency, into the grid. Pointing out that coal will continue to remain critical, he advocated their slower penetration into the grid. While renewables will continue to increase driven by India's commitment to clean energy, it will be done in proportion, he said. 'The world has no precedent of so much solar and wind energy coming into the grids. The grids are not ready for the intermittency. If we need backups for everything, what is the point? It's double the investment cost. That is the challenge.' It is in this context that the Union Budget announcement with respect to small modular reactors and the decision to open the nuclear energy sector to the private sector assumes significance, he said. In global manufacturing, India should aim to make itself indispensable as China has done over the past 30 years, Dr. Nageswaran said. This assumes significance given the growing uncertainty factor in the global economic scenario which prompts countries to increasingly look inward, and India's high dependence on China for components in vital sectors. 'The vulnerability of dependence on one source for many products will turn much sharper in the coming years. We have to think of what are the other sources we can rely on as an alternative to China,' he said. Given its size, India can develop as a more reliable and trusted alternative source to China, he said. 'Vietnam, Mexico, Cambodia, Thailand and Indonesia lack the size to even take a shot at matching what China has done in the last thirty years. That is our opportunity,' he said. Speaking on the occasion, Governor Rajendra Vishawanath Arlekar said that, henceforth, Raj Bhavan will not only be for the Governor who resides there. Rather, Raj Bhavan will be a 'Lok Bhavan,' as it is the people's asset, he said. 'Earlier the concept was that Raj Bhavan has to be a secluded place, away from the people and society. The gates of Raj Bhavan were never opened for all of us,' he said.
India.com
12 minutes ago
- India.com
Iran or Israel? Which country is more important for India, why is New Delhi in a dilemma?
Iran or Israel? Which country is more important for India, why is New Delhi in a dilemma? New Delhi: The conflict between Israel and Iran is escalating every day. This has increased India's tension for energy security, trade routes and commercial relations. In view of this, Global Trade Research Initiative (GTRI) has recently reached out to the Indian government and advised it to review energy risk scenarios, diversify crude oil sources and ensure strategic reserves of oil. The report urges the Indian government to ensure that the country's strategic oil reserves are sufficient to deal with any potential crisis. As per a report by GTRI, India, which is not directly involved in Iran-Israel conflict, cannot remain unaffected. The report also recommends promoting diplomatic efforts in the Arabian Sea. India's Trade With Iran, Israel GTRI has raised an alarm that rising tensions in West Asia are posing a threat to India's energy security, trade routes and commercial relations. The report also highlights that growing Israel-Iran conflict could have a major impact on the economy of India. It is to be noted that, New Delhi has trade relations with both the countries. In FY- 2024-2025, India exported goods worth USD1.24 billion to Iran and imported USD441.9 billion goods. Trade with Israel is even bigger as It includes exports of USD2.15 billion and imports of SD1.61 billion. India's foreign policy has always been not to be a part of any one group (non-alignment). It wants to maintain its independent relations with both the countries. India's Biggest Concern As a country with the largest population, India's biggest concern is energy. About two-thirds of crude oil and half of its LNG imports pass through Strait of Hormuz, a narrow waterway that is now threatened by Iran. The Strait of Hormuz handles about a fifth of the global oil trade. Notably, India imports over 80 percent of its energy needs. In such a situation, any kind of disruption or halt at the Strait of Hormuz could lead to increase in oil prices, shipping costs and insurance premiums. GTRI said that the situation could increase the inflation rate, weaken rupee and pose challenges to the government's financial planning. A significant portion (approx 30%) of India's exports to Europe, North Africa, and the US East Coast traverse the Bab-el-Mandeb Strait. Disruptions to this route could add up to two weeks to transit times, necessitating a longer journey around the Cape of Good Hope and leading to substantially higher freight costs. This will negatively impact Indian exports, including engineering goods, textiles, and chemicals, and increase the price of essential imports. What does India need to do? GTRI reports rising casualties in an ongoing conflict, further exacerbated by the breakdown of US-Iran nuclear talks. This situation is impacting regional financial markets. GTRI advises India to proactively address potential energy risks by diversifying its oil sources and verifying the sufficiency of its strategic reserves. A report emphasises the necessity of enhanced military readiness in the Arabian Sea, particularly near vital shipping routes. Simultaneously, it recommends India leverage international platforms like the G20 and the UN to advocate for peace, conflict resolution, and the safeguarding of global trade.
Time of India
13 minutes ago
- Time of India
Tech billionaire Mark Cuban thinks Donald Trump phone could be all about …
Tech billionaire Mark Cuban has predicted that the newly launched Trump-branded smartphone 's primary purpose may not be the device itself, but rather a strategic way to generate revenue through cryptocurrency. Replying to a post on social media platform X (earlier Twitter) about the newly announced Trump-branded phones, the billionaire investor proposed that the $499 "T1" phone may likely feature a pre-loaded crypto wallet. Cuban also suggested that this wallet may integrate entities like World Liberty Financial (WLF - a crypto company that's connected to the Trump family) and the Trump coin, along with their stablecoins. Cuban believes that 'whatever transactions they can create will generate fees for them,' highlighting different ways to facilitate sales and preload assets onto the device to generate income. This comes after US President's sons, Donald Trump Jr. and Eric Trump, unveiled the Trump Phone this week. What Mark Cuban said about the Trump 'T1' phone by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo This all started with a post shared by Cuban on X, which included a video of Eric Trump introducing Trump Mobile. Sharing this video, Cuban wrote: 'I just want to know who makes them and where.' Replying to this post, a user named Gary Koepnick said: 'I'll never understand how 25% of the population can't see him for what he is.' Further responding to Koepnick's comments, Cuban wrote: 'I think the smart game they are probably playing is to put a crypto wallet on the phone that leverages WLF, $Trump and their stable coins. Whatever transactions they can create generate fees for them, and there are so many ways to sell things and pre-load whatever they want.' However, it's important to note that there is no mention on the Trump Mobile website of cryptos. If Mark Cuban's theory proves accurate, the Trump phone could serve as a gateway to a Trump-branded Web3 ecosystem, potentially preloaded with digital wallets, assets, and features enabling blockchain transactions. In an interview with Fox Business, Eric Trump said that the T1 device would 'revolutionise cellphones,' while Donald Trump Jr. described it as a 'true value' alternative to mainstream carriers, made in America, during a press conference in New York City. Trump Jr. also stated that the venture aims to offer more than just wireless coverage and a smartphone — it will include services like telemedicine and roadside assistance. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
