#Biggest Aviation Insurance Claim in India’s History After Air India Crash
News Desk: India is reeling from the financial aftershocks of its deadliest aviation disaster in over a decade, as the catastrophic Air India crash in Ahmedabad—claiming at least 241 lives—sets off what may be one of the country’s most expensive insurance claims ever, estimated at a staggering $475 million (Rs 39.4 billion).
The aircraft, which plunged into a densely populated area of the city last Thursday, has not only devastated families but also rocked the global aviation insurance and reinsurance sectors.
“This could be among the biggest aviation insurance claims in India’s history,” said Ramaswamy Narayanan, Chairman and Managing Director of the General Insurance Corporation of India (GIC Re), in an interview with Bloomberg. GIC is among the insurers providing coverage for Air India.
Breakdown of the Mega Claim
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Hull and engine damage: Estimated at $125 million (Rs 10.44 billion)
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Passenger and third-party liability: Expected to hit $350 million (Rs 29.23 billion)
The combined total exceeds three times the entire annual aviation insurance premium collected in India in 2023, according to Bloomberg data.
Global Ripples and Rising Costs
The financial fallout from the crash is expected to send shockwaves through the international aviation insurance and reinsurance markets, experts warn. The scale of the claim will likely push up premium costs for Indian airlines, tightening margins in an already cost-sensitive sector.
As investigations continue into what led to the crash, the disaster is quickly becoming a watershed moment—not only in India’s aviation history but also for the global insurance industry.
