InsuGuru

InsuGuru

6/12/2025, 3:01:15 PM

📰 *AI171 Crash Triggers ₹1,500+ Cr Insurance Response* The devastating crash of Air India’s London-bound Flight AI171 near Ahmedabad on 12 June 2025, involving a Boeing 787 Dreamliner, has led to one of the largest-ever aviation insurance events in India. With over 240 lives lost and the aircraft completely destroyed, the insurance response spans both domestic and international markets. *🔍 Insurance Highlights:* *🔸 Lead Insurer:* The aviation policy is led by Tata AIG General Insurance, backed by Indian co-insurers like GIC Re, United India, Oriental Insurance, and ICICI Lombard. *🔸 Global Reinsurance Support:* Around 95% of the risk is reinsured with major global players including AIG, AXA XL, and other reinsurers in the London and Bermuda markets. *🔸 Hull Loss (Aircraft Damage):* The Boeing 787-8 aircraft, declared a total loss, is estimated to be insured for ₹650–700 crore, based on age-adjusted insured value. *🔸 Passenger Liability:* Under the Montreal Convention, families of deceased passengers are entitled to ~₹1 crore each. With 240+ fatalities, this could result in payouts exceeding ₹240 crore. *🔸 Total Projected Insurance Payout:* Combined hull and liability exposures may cross ₹1,000–1,500 crore, depending on final settlements and legal claims. *🔸 Risk Distribution:* Indian insurers retain only around 5% of the exposure, amounting to ₹50–75 crore, while the bulk will be absorbed by foreign reinsurers. *🔸 Policy Scale:* Air India’s fleet-wide aviation cover reportedly runs into ₹8,000–10,000 crore, with an annual premium estimated around ₹250 crore. *📌 Market Impact:* This incident is likely to harden the global aviation insurance market, especially for wide-body aircraft operators in Asia.

InsuGuru

6/13/2025, 5:18:51 AM

https://www.moneycontrol.com/banking/new-india-assurance-likely-primary-insurer-for-air-india-plane-crash-hull-insurance-likely-between-50-100-mn-article-13113433.html?classic=true

InsuGuru

6/12/2025, 12:41:03 PM

https://asiainsurancepost.com/archives/67347

InsuGuru

6/13/2025, 5:19:13 AM

*Air India:* TATA AIG - 45% NEW INDIA - 32% ORIENTAL INS. - 14% ICICI LOMBARD - 7% UIIC LTD - 1% NATIONAL - 1%

InsuGuru

6/12/2025, 12:39:28 PM

*Air India's $20 billion insurance* ( finalized in Feb'25) covers 300 plus planes belonging to Air India and Air India Express. Premium is around $30 million. The insurance will cover against damage to aircraft from incidents, accidents or war. There is a separate cover for passenger and third party liabilities. Tata AIG is the lead insurer for Air India taking a significant portion of risk. Indian public sector insurance firms and ICICI Lombard have a smaller share of sum insured. The entire risk has been underwritten by *London based reinsurers.*