Air India Crash May Be India's Most Expensive Aviation Insurance Claim
The Air India plane crash on Thursday afternoon, which killed 241 passengers and crew on board, may become India's most expensive aviation claim, with liabilities ranging between $211 million and $280 million, translating to Rs 2,400 crore.
Air India Boeing 787-8 Dreamliner, headed to London's Gatwick Airport, departed from the Sardar Vallabhbhai Patel International Airport in Ahmedabad at 1:38 pm. Within 32 seconds of take-off, the plane crashed as it failed to achieve lift. The passengers comprised 169 Indian nationals, 53 British nationals, 7 Portuguese nationals and a Canadian national. Only one British-Indian passenger, Vishwash Kumar Ramesh, survived the crash.
Follow updates here
According to Ramaswamy Narayanan, Chairman and Managing Director of the General Insurance Corporation of India (GIC), a public sector reinsurance company, an airline's fleet insurance policy typically covers risks such as aircraft hulls, spare parts, and liabilities to passengers and third parties.
In the case of the Dreamliner crash, claims are expected under both the hull and liability sections as the Boeing turned into a ball of fire, killing hundreds of people. The valuation will depend on the age, configuration and other factors, ranging between $211 million and $280 million, said Amit Agarwal, CEO and MD at Howden India.
The Dreamliner involved (VT-ABN) in the crash was a 2013 model and was insured for approximately $115 million in 2021. "Whether the damage is partial or total, the loss would be covered based on the value declared by the airline", Mr Agarwal added.
The compensation for passengers will come under the Montreal Convention of 1999, to which India became a signatory in 2009. The compensation will be calculated under Special Drawing Rights (SDRs), with a current value of 1,28,821 SDRs, or roughly $1,71,000, which is Rs 1.47 crore.
Additionally, third-party property damage liability and loss of lives at the crash site will also be counted.
The Tata Group on Thursday announced a compensation of Rs 1 crore to the families of each person who lost their lives in the plane crash.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
Two-month annual fishing ban along Andhra coast lifts today
Visakhapatnam: The two-month annual fishing ban for conservation period for marine species along the Andhra Pradesh coast will be lifted on June 14 midnight. About 50% of 2,500 mechanised boats and 70% of 4,000 motorised boats in parts of the state are ready to resume deep sea fishing from June 15. The fisherfolk and owners of fishing boats are hoping for a good catch of shrimp for the first voyage in the new fishing season. Major fishing harbours—Visakhapatnam and Kakinada in the state, are bustling with activity as fishermen prepare for the new fishing season. The annual two-month fishing ban was intended to conserve marine species along the east coast. After the ban is lifted, fishermen will be free to resume sailing from June 15. Several fishermen were seen busy loading ice, diesel and essential commodities in the fishing boats for the new fishing season. "Despite the end of the fishing ban, not all fishing boats in the state will venture out immediately due to logistical challenges such as incomplete repairs, ice availability, funding and labour shortages," said Surada Satyanarayana, general secretary of Visakha dolphin boat operators welfare association. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo "Some boats will head out on June 15 and 16 while others will sail for voyage from June 20," he added. "The catch in the first few voyages depends on the pre-monsoon rainfall activity. As AP experienced excess rainfall in April and May, the fishermen said that they will return with a huge catch of shrimp in June and July," said Myllapalli Laxman, a fisherman in Vizag region. "Generally, for a voyage, the owner of a mechanised fishing boat invests around 4-6 lakh (diesel, ice, essential commodities) and we need to catch at least 60-80% more than the invested amount to sustain our trade," stated Satyanarayana. "Though the new fishing season begins from June 15, we must wait for atleast two to four weeks to get popular varieties of fish, and brown and white prawns. We have been waiting for the availability of big size prawns and seer fish to relish the seafood dishes," said V Ganesh, a resident of Vizag city. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
17 minutes ago
- Time of India
Summer Holidays Hit By Turbulence
New Delhi: It's the season when suitcases come out and travel plans take off. But this summer, for many outbound flyers, wanderlust is tempered with worry. From tense airspace maps to the recent air tragedy, there's a lot of rethink going on at what is otherwise peak carefree vacation time. The skies between India and the west have become a minefield with airlines avoiding ever-expanding no-fly zones. Air India resumed overflying Iran after Pakistan airspace was closed to Indian carriers on April 24 to make the longer detours bearable. But with Iran closing its airspace following the Israeli attacks on its nuclear sites, the longer routes between India and the west will get even longer. The deadly Air India crash in Ahmedabad has also created a fear of flying. "There's concern among flyers. Many are opting for airlines other than AI," claimed Anil Kalsi, vice-president, Travel Agents Federation of India. "The current uncertainty about routes and the memory of the horrific air crash have caused nervousness among travellers. Many people are deferring non-essential travel until the situation stabilises on either or both of these fronts." The Directorate General of Civil Aviation has asked Air India to inspect its Dreamliner fleet, employed in routes to Europe and the Far East. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo These craft are being checked as they fly into India and are cleared for the next flight only after passing the checks. "AI has completed checks on nine of the B787s. Some of these inspections could lead to higher turnaround time and potential delays on certain long-haul routes, especially those to airports with operating curfews. Customers will be duly notified about any delays. They are advised to check the status of their flights before heading to the airport," AI posted on X on Saturday. The closure of Iranian airspace led to 16 AI flights being affected on Friday. Some were diverted to cities en route such as Vienna, Jeddah and Sharjah, while others returned to their port of origin. IndiGo's once non-stop flights between Delhi and Tbilisi and Baku are now one-stop routes. "Safety is any traveller's first concern. The crash pushed Air India's image back by at least three years. Both family and solo travellers are equally rattled," said M. Iqbal Mulla, president, Global Tourism Council, and former head of Travel Agents' Association of India. "Then, the impact of the Iran airspace closure has proved severe." The bottlenecks in the sky could get worse. The airspace of Jordan and Lebanon closes whenever there's conflict in the region and has shut several times since the Hamas attack in Israel in Oct 2023. Expectedly, travel agents are inundated with panicked calls, airports are grappling with unscheduled landings, and passengers are coming to terms with the uncertainty. Sunil Kumar R, president, Travel Agents' Association of India, said, "The confidence of international travellers has been affected. Many of them are now undecided and awaiting stabilisation of the situation. This indecision is having a negative impact on outbound travel. While some of this may benefit domestic tourism temporarily, continued uncertainty will discourage overseas travel altogether. We're receiving several calls from customers confused about whether to book or postpone travel." J yoti Mayal, chairperson, Tourism and Hospitality Skill Council and former TAAI president, reiterated, "The Israel-Iran conflict and airspace closure have disrupted over 1,800 flights and prompted diversions, especially on routes from India and southeast Asia to Europe and the US. Amid this, Air India has faced a wave of cancellations and change requests, particularly from those booked on similar flights." The India-Pakistan airspace standoff whenever there is tension also forces carriers to take detours and passengers to think twice. There is discussion every day among potential travellers whether it is the right time to be travelling. Sonalika said, "I remember cancelling my flight tickets from Canada to India because of the tension between the two countries earlier. I can only imagine how it feels right now." Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
17 minutes ago
- Time of India
NDMC to spend 31cr on smart water meter plan
New Delhi: New Delhi Municipal Council has approved a sum of Rs 31 crore for its long-pending project to provide smart water meters in areas under its jurisdiction. The work includes replacing conventional mechanical meters with new smart meters. At present, there are 20,709 water connections in the NDMC area. There was earlier a Rs 14 crore proposal for replacing 5,397 defective mechanical water meters with smart water meters. This has been extended also to the remaining 15,312 meters to achieve 100% accuracy in operations and to ensure the longevity of the water meters. "We have a preliminary estimate of Rs 30.8 crore for installing smart water meters in consumer connection lines. These meters will have advanced metering capacities, are highly waterproof, magnetically sealed, have no moving parts and are capable of measuring both low and high water flow," claimed Kuljeet Chahal, NDMC vice-chairman. The proposal underlined that the smart meters were relatively costlier but provided accurate data without manual intervention. Their life expectancy was 15-20 years compared with 5 for mechanical meters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo These meters can eliminate entrapped air so can accurately measure water consumption, the proposal said, adding, "These cannot be tampered with and have an in-built provision to raise an alarm if any unauthorised tampering is done. Most importantly, no manpower is required for physical meter reading at the site, unlike conventional meters, as the reading will be directly available at the meter data management." Given such features, NDMC decided on June 12 to get the current meters replaced by smart meters to instil confidence in the consumer. "These types of meters are now installed by most water-supplying departments across the country. Since NDMC has already granted administrative and expenditure sanction for the project, we expect the work to be completed by July 2026," said Chahal. Bansuri Swaraj, member of Parliament and ex-officio member of NDMC, said that upgrading essential civic facilities employing modern technology would significantly enhance efficiency and bring transparency and ultimately benefit citizens while improving service delivery. A proposal for the procurement of smart electricity meters for the mass replacement of existing static-type operated electronic energy meters was also approved by NDMC. An official said that the process for replacing conventional meters with smart electricity meters is already underway, with 60% of the work completed. The new proposal is meant to procure the remaining smart meters. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
