AI to get $20-mn towards Mangalore crash insurance claims | business | Hindustan Times
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AI to get $20-mn towards Mangalore crash insurance claims

business Updated: Aug 11, 2010 15:58 IST
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National carrier Air India is likely to get about $ 20 million (close to Rs 90 crore) this week towards the final installment of insurance claims arising from the Mangalore crash earlier this year.

Insurers have already paid 60 per cent of the total hull losses, which was estimated at $50 million (about Rs 230 crore), while AI will receive the balance 40 per cent by this week, industry sources said.

Hull loss liability is different from passenger liability and relates to damage to the aircraft.

The payment is being made by a consortium led by Anil Ambani group firm Reliance General Insurance and also comprising Bajaj Allianz, Iffco-Tokio and HDFC Ergo.

When contacted, officials at Reliance General Insurance declined to comment.

This wouuld be the final payment for Mangalore aircrash hull loss, they added.

Besides, the insurers have already paid Rs 15 crore towards passenger liability as interim compensation announced by AI soon after the crash of its Air India Express flight from Dubai on May 22.

The final payment towards passenger liability will be completed after assessment by legal firms appointed by airline and insurers, sources said.

Addressing a press conference in Mangalore a day after the tragedy that claimed 158 lives, Air India Chairman and MD Arvind Jadhav announced an interim compensation for the victims of the Mangalore air crash, including Rs 10 lakh for the families of those above 12 years of age.

This interim payment was made pending the final settlement of insurance claims and was separate from the compensation packages announced by the central and state (Karnataka) governments.

The extent of interim compensation was decided by the insurance firms and Air India together, Jadhav had said.