India’s deadliest air accident in more than ten years is sending shock waves through the aerospace industry because it has launched one of the most expensive demands in the country, estimated to be approximately $ 475 million or £39.4 billion.
Ramaswamy Narayanan, Chairman and CEO of General Insurance Corporation of India, said to Bloomberg: “This application for air insurance could be one of the largest in India’s history.” General Insurance Corporation of India is one of the companies that provided coverage for Air India.
The cost of damage is covered with insurance
According to Narayanan, the entitlement to the aircraft and the engine is estimated at approximately $ 125 million or £10.44 billion. Estimated that additional demands on loss of passengers’ life and others will be around $ 350 million or £29.23 billion. According to data of Bloomberg, the cost of more than three times the annual premium for the aerospace industry in India in 2023 is more than three times.
The financial impact on the accident that killed 241 people on board, and others, when they dropped in a densely populated part of Ahmedabad in West India on Thursday, will affect the entire global market with air insurance and securing market. It is also likely that insurance will be more expensive for airlines in India, according to Bloomberg.
After falling, the insurance is likely to be more expensive
The premiums throughout the air industry are expected to increase in India, whether at the time of policy restoration, according to sources known to Bloomberg.
Air India’s insurance payment could be climbed because foreign nationals were killed in the accident. These statements will be calculated according to the rules in their relevant countries, Bloomberg informed.
The insurers first resolve the entitlement to the torso, followed by demands for responsibility, Narayanan told Bloomberg. “It will take some time to resolve the liability claims,” he added.
International arrangements who usually carry a financial burden
The impact on the domestic market will be partially reduced by the fact that both companies generated only about 1% of their total aviation premiums and, according to data of Bloomberg, most of them advanced to global reinsurance companies.
In general, domestic insurance companies have interpreted more than 95% of their Direct Aviation Insurance Written bonuses or DWP for global providers.
For this reason, the financial burden will mostly fall to international providers, which will lead to the aerial security and insurance market, Bloomberg reported, referring to the statement issued by Swaruup Kumar Sahoor, senior insurance analyst in Globaldata.
(Tagstotranslate) India Air accident
