Air India Crash. Credit: Tanittost, Shutterstock.
The fatal crash of Air India Flight AI171 on June 12, 2025 is expected to be one of the biggest air insurance claims in Indian history, with a total payment of approximately $475 million (€445 million). luck.
The Boeing 787 Dreamliner aircraft crashed shortly after taking off from Ahmedabad to London, attacking a student hostel, killing at least 38 people on the ground, including students and staff. It is officially the deadliest air disaster in India.
Air India Airplane crash fall: Insurance fallout
Insurance fallout is vast and covers everything from destroyed aircraft to passenger deaths, hostel damage and third party injuries.
The destroyed aircraft alone is estimated to cost the insurance company around $125 million (108.9 million euros), says Ramaswamy Narayanan, chairman of India’s General Insurance Corporation. luck.
Indian insurers like Tata AIG and New India Assurance hold a small share of risk (less than 5%), and most of it is passing on to global reinsurers like Lloyd in London.
“The financial burden is primarily on international reinsurers, leading to aviation reinsurance and hardening of the insurance market,” said Swarup Kumar Sahoor, senior analyst at GlobalData.
Payment to the family of passenger victims of Air India
Families of deceased passengers are entitled to Rs 1.75 (approximately 195,000 euros) each under the Montreal Convention, signed by India. This compensation is automatic and the family does not need to prove negligence.
Additional payments may continue if the court has proven negligence. Total passenger car-related liabilities are projected to be $350 million (EUR 355.2 million). luck.
Air India owner Tata Group has also announced payment of 1 trillion gratia to each victim’s family. This voluntary payment is separate from legal compensation under the Montreal Convention and is made clear. MoneyControl.
Air India Crash: Third Party Claims
Dozens of people have been killed and many more have been injured in the hostel clashes. These victims are covered by third-party liability insurance.
Compensation for these individuals is not automatic. The family must submit a death certificate, ID certificate, and inheritance document to the insurance company or airline. Payments may be delayed for several months due to legal proceedings and disputes over kinship.
Although there is no fixed limit on these payments, Indian courts have previously awarded Rs 20 to Rs 1 (Euro 20,100 to Euro 100,500) depending on the victim’s profile and circumstances.
The hostel buildings and other surrounding infrastructure that were destroyed in the collision are also covered by third-party liability insurance. The medical college or trust that owns the hostel can claim damages for repair costs, confusion costs, and market value.
Indian insurance companies process claims, but over 95% of liability are reinsured overseas. The global aviation insurance market is expected to face rising premiums as a result.
Apart from the airline’s liability, families can also claim individual personal travel or life insurance, if applicable. The Indian Insurance Information Bureau (IIB) portal allows families to search for unknown policies using basic details of the deceased.
See all world news.
