Air India Flying Crash: The Montreal Convention will regulate the insurance payments for nominated passengers who died in the accident of Air India in Ahmedabad on Thursday, experts said. While Air India can declare a provisional payout, the actual compensation will depend on the coverage of the purchased airline.
India is a signatory of the Montreal Convention, whose applicable provisions will be used in the payment of insurance, they said, according to the PTI report.
According to the vice -president of the cautious insurance brokers (Aviation & Specialty Lines), Hitesh Girotra will be minimal responsibility related to the airline operator dependent on the nationality of passengers who have lost their lives.
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Although the airline may announce interim compensation, the final payouts for passengers will be determined according to the Montreal Convention of 1999, to which India became a signatory in 2009, said the brochy company Howden (India) MD and AMIT AGARWAL CEO.
“Compensation is calculated using special drawing rights (SDRS), which cost 128,821 SDR (approximately $ 1.33 per SDR) since October 2024.
Air India can get $ 280 million for a damaged aircraft
According to AMIT AGARWAL, the Air India aircraft damage will be included in the Aviation Hull All-Risk section. This includes insurance for the current aircraft valuation, including spare parts and equipment.
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For Dreamliner, this value can be between $ 211 million and $ 280 million depending on its configuration, age and other factors, he said.
“The participating aircraft (VT-ABN) was a model of 2013 and based on available information was insured for approximately $ 115 million in 2021. Whether the damage is partial or overall, the loss would be covered on the basis of the value announced by the airline,” he said.
No insurer bears the whole risk
According to Narendra Bharindwal, President, Association of Insurance Brokers in India (IBAI), air insurance programs for main airlines such as Air India, are organized on the basis of fleet and are provided on international markets such as London and New York.
“No insurer bear the entire risk-clock is widely divided among global securers, while shares are up to 1.5 % to 2 % small and the leader usually takes 10-15 %. The financial impact of these incidents is globally shared in this network,” he said.
Fleet Air India B787
Currently, Air India and Indigo are two Indian airlines operating Boeing 787 aircraft.
Of the 34 B787 in the Air India fleet, the 27 B787-8S is an older aircraft. The first of the Legacy B787-8 is scheduled for retrofit in July. The remaining seven B 787-9 joined the Air India fleet after the Vistara fusion with her last year.
Globally, Ahmedabad is the first time the loss of the fuselage for the B787 has become a clerk.
(Tagstotranslate) Air India Air Crash (T) Montreal Convention (T) Insurance Payouts (T) Aviation Insurance (T) Air India Air India Insurance (T)
