Ahmedabad plane crash: Insurance claims may exceed ₹4,000 cr

In the tragic Ahmedabad plane crash, where 241 people on board lost their lives and only one passenger seated in 11A survived, the total insurance claim is estimated to exceed ₹4,000 crore.

According to experts in the insurance industry, under passenger liability coverage, the airline’s compensation responsibility could reach approximately $125 million (1,082 cr). In addition to this, if third-party liability, personal accident policies, and travel insurance are included, the total claim could rise to $350 million (3,030 cr).

Apart from the flight insurance taken by Air India, many passengers may have held personal accident coverage either directly or through credit cards. 

Some Indian credit card providers offer insurance ranging from ₹20 lakh to ₹2 crore. Premium cards typically offer coverage of ₹1 crore, while mid-tier cards may offer between ₹20 lakh and ₹50 lakh.

Due to high medical costs abroad, many Indian travellers also opt for international travel insurance which includes personal accident coverage. The Boeing aircraft involved in the crash was valued at approximately ₹850 crore.

The Insurance Regulatory and Development Authority of India (IRDAI) has issued instructions to insurance companies to fast-track the settlement of claims. Insurers have also been directed to appoint nodal officers and provide weekly updates to IRDAI on the progress of claim settlements.