Tata Group announced a compensation of Rs 1 crore to the families of each person killed in the crash.
- Liabilities from the crash may range between $211 million and $280 million.
- Tata Group announced compensation of Rs 1 crore for the families of each deceased passenger.
- The Dreamliner involved in the crash was a 2013 model and was insured for around $115 million in 2021.
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.
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.
Also Read | 9,300 Hours Experience And An Unkept Promise Of Pilots Of Doomed Flight
Track Latest News Live on NDTV.com and get news updates from India and around the world
