Friday, September 11, 2020

Air India Express to get $51M for loss of aircraft in Kozikode accident

Chennai: The Air India Express will get about $51 million towards the loss of its Dubai-Kozhikode aircraft in the accident in Kozhikode airport last month, a senior insurance industry official said.

On August 7, the ill-fated Air India Express skidded off the runway of the Kozhikode airport and fell into a valley before breaking into two pieces, killing 18 persons and leaving scores injured.

"The total claim amount to be paid to Air India Express for loss of aircraft/hull will be about $51 million. The aircraft has been insured for $50 million which will be paid as it is a total loss. A sum of $1 million will also be paid towards increased cost of working," the senior official with one of the four insurers told IANS preferring anonymity.

According to the official, an interim payment or 'on account payment' is expected to be paid to Air India Express sometime next week.

"The airline has to submit the necessary documents called for by the lead reinsurer. Once that is done the claim will be processed. The claim payment to Air India Express will be made by the lead primary insurer and recovered from the lead reinsurer," the official added.

Adding further he said the claim is on track and most of the papers that have been called for have been submitted by the airline and the interim payment will be made soon.

As a part of the claims procedure, the insurers/reinsurers will call for documents like the accident investigation report, aircraft maintenance log book and pilot log book, among others.

A consortium of four public sector insurers a" New India Assurance, National Insurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd -- has insured the fleet of about 170 aircraft belonging to Air India and its subsidiaries, including Air India Express.

The airline has taken policies covering the aircraft or hull and liability for third party and passengers.

The total premium earned from Air India was about $36 million.

The share of New India in the premium and claims will be 40 per cent and the balance 60 per cent will be shared equally by National Insurance, Oriental Insurance and United India.
11/09/20 daijiworld
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