Kozhikode AI Crash: Insurers Pay Out Rs 660 Crore, Highest In Indian Aviation Market

Picture courtesy Indian Express

Global reinsurers and Indian insurers shelled out a record claim of Rs 660 crore ($89 million) in the Air India Express crash on August 7 at Kerala’s Kozhikode airport, which killed more than 20 people, including both pilots.

It’s the largest claim pay-out in Indian aviation market, The Indian Express reported.

According to CMD, New India Assurance (NIA) Atul Sahai, of the total claim of $89 million, $51 million is for the hull total loss and $38 million for passengers who died or were injured, TPL and baggage loss etc.

NIA, the primary insurer of Air India, paid Rs 373.83 crore as hull claim to the airline, the highest ever pay-out in Indian aviation insurance market in this segment arising out of the crash.

Besides full settlement for the Hull claim, NIA also paid Rs 3.5 crore for liability as immediate relief to passengers affected, Sahai said.

Majority of the claims are being settled by global reinsurers including GIC Re.

The flight from Dubai to Kozhikode overshot the tabletop runway, fell 35 feet below into a valley and broke into pieces.

All liability claims will be cleared after profiling of every passenger, documentation and assessment of all other liabilities which may arise. Liability claim payment may take a few more months as documentation process will have to be completed at reinsurers’ end, Sahai said.

It was learnt that Air India has paid a premium of $30 million for a sum assured of $10 billion during renewal for 2020-21, starting from April 1.