The plane’s cowl was raised from ₹750 crore to ₹850 crore in April 2025 following an engine alternative, stated sources. The plane was en path to London Gatwick when it went down in what’s now being referred to as the worst wide-body plane crash in Asia lately.
The majority of the insurance coverage burden will fall on international reinsurers, with Indian insurers anticipated to soak up solely ₹100–150 crore of the entire legal responsibility. Over 90% of the chance was reinsured with abroad corporations together with AIG, AXA XL and different gamers within the London and Bermuda markets.
The insurance coverage coverage, led by Tata AIG Basic Insurance coverage, covers Air India’s complete fleet and is valued between ₹8,000 and ₹10,000 crore. The annual premium paid by Air India for this coverage is reportedly round ₹250 crore. Home co-insurers embody GIC Re, United India, Oriental Insurance coverage, Nationwide Insurance coverage, and ICICI Lombard.
The Dreamliner, which has been declared a complete loss, was valued at ₹850 crore on an age-adjusted foundation. Aside from hull loss, insurers are bracing for giant passenger and third-party compensation claims. Below the Montreal Conference, households of the deceased passengers are entitled to payouts of round ₹1.7–1.8 crore every, pushing the entire passenger compensation legal responsibility alone above ₹420 crore.
Consultants stated this tragedy might have broader implications for the aviation insurance coverage sector, particularly for wide-body plane operations in Asia. “This was the primary main crash involving a wide-body plane within the area. It’s prone to harden the worldwide aviation insurance coverage market,” one knowledgeable famous.In the meantime, the Insurance coverage Regulatory and Growth Authority of India (IRDAI) has issued directives to fast-track claims. In a June 14 round, IRDAI instructed all insurers concerned within the crash to submit weekly updates on claims from June 16 onwards. Insurers have additionally been requested to nominate nodal officers, waive formalities similar to FIRs and postmortem experiences, and expedite disbursals below life and private accident insurance policies.With inputs from TOI
