In the event of a plane accident, such as the Air India crash, passenger insurance plays a crucial role in providing financial protection to the victims and their families. Passenger insurance, also known as flight insurance, is a type of insurance policy that covers passengers against accidental death or injury while traveling by air.

When a plane accident occurs, the insurance company will typically initiate the claims process. The claims process involves the following steps:

  1. Notification: The airline or the insurance company is notified of the accident, and the claims process is triggered.
  2. Documentation: The insurance company will require documentation, such as the passenger’s ticket, passport, and death certificate (if applicable), to process the claim.
  3. Investigation: The insurance company will investigate the circumstances surrounding the accident to determine the cause and liability.
  4. Claims assessment: The insurance company will assess the claim and determine the amount of compensation payable to the passenger or their beneficiaries.

The amount of compensation payable under passenger insurance policies varies depending on the type of policy and the circumstances of the accident. Typically, passenger insurance policies cover:

  • Accidental death benefit: A lump-sum payment to the passenger’s beneficiaries in the event of their death.
  • Permanent disability benefit: A payment to the passenger if they suffer a permanent disability as a result of the accident.
  • Medical expenses: Reimbursement of medical expenses incurred by the passenger as a result of the accident.
  • Travel delays: Compensation for travel delays or cancellations due to the accident.

Claims are usually paid out to the passenger or their beneficiaries, depending on the policy terms and conditions. In some cases, the insurance company may also provide additional benefits, such as:

  • Emergency assistance: Providing emergency assistance, such as medical evacuation or travel arrangements, to the passenger or their family.
  • Counseling services: Offering counseling services to the passenger or their family to help them cope with the trauma of the accident.

It’s essential for passengers to carefully review their insurance policy terms and conditions before traveling to understand what is covered and what is not. Additionally, passengers should ensure that they have adequate insurance coverage to protect themselves and their loved ones in the event of a plane accident.

by | Aug 24, 2025 | Insurance, Tata AIA

A recent plane crash involving an Air India Boeing 787-8 Dreamliner has resulted in one of the worst aviation disasters of the last decade, with 241 out of 242 passengers losing their lives. The sole survivor, a British citizen, is receiving treatment, and the Tata Group has announced an ex gratia payment of Rs 1 crore to the families of the deceased. The group will also bear the entire cost of treatment for the survivor and those injured in the building where the plane crashed.

In terms of insurance coverage, commercial airlines typically purchase comprehensive aviation insurance programs, which include hull insurance, passenger liability insurance, third-party legal liability, cargo liability, and crew personal accident. Hull insurance covers physical damage to the aircraft, while liability insurance protects the airline from legal claims arising from bodily injury, death, or property damage caused to third parties.

Airlines are required to make advance payments within 15-30 days for immediate needs in fatal accidents, without admitting liability. The insurance payouts in such cases can be substantial, with the total amount of insurance claims from Indian insurers and global reinsurers estimated to be around $120 to $150 million (about Rs 1,000 to Rs 1,200 crore).

The compensation given to the families of passengers is based on the Montreal Convention 1999, which provides internationally recognized compensation. Even if the negligence of the airline is not proved, a basic amount has to be paid to the relatives of the passengers, which can be more than Rs 1.3 crore at current rates. If the fault or negligence of the airline is proved, the compensation can increase further.

Travel insurance policies can also provide accidental death benefits, emergency medical evacuation, and repatriation of mortal remains. In this case, the insurance claim is expected to be one of the largest in Indian aviation history, with the hull loss of the plane estimated to be around $80 million and passenger and third-party compensation potentially reaching $100 million. The insurance sector experts believe that this accident will have significant implications for the aviation industry and insurance companies.