The recent Air India plane crash in Ahmedabad is expected to lead to one of the largest aviation insurance claims in Indian history. Sources familiar with the case estimate that the insurance claim could exceed $120 million (over 12 crore USD).
Breakdown of the Insurance Claim
Out of the total claim, the aircraft’s value or hull loss is estimated to be around $80 million. Additionally, passenger liability compensation could add between $30 million and $50 million to the claim amount. Air India insures its entire fleet under an aviation insurance program worth $2 billion.
Who Covers the Insurance?
The hull and liability coverages are shared between Tata AIG, part of the Tata Group, and other domestic insurers. An international consortium led by AIG handles the reinsurance structure. Public sector insurers like New India Assurance and GIC Re also participate in the reinsurance.
Market Impact and Plane Details
Following the crash, shares of New India Assurance and GIC Re dropped by approximately 4% and 3% respectively. The aircraft involved was a Boeing 787-8 Dreamliner, reinsured in 2021 for $150 million. The flight took off from Ahmedabad with 242 passengers onboard but crashed minutes after departure, resulting in an estimated 290 deaths including passengers and crew.
