By buld_online 
In the wake of the recent Air India crash involving a Boeing 787-8 aircraft, state-run Life Insurance Corporation of India (LIC) and private insurer Bajaj Allianz have announced significant steps to expedite the processing of insurance claims for affected families. The crash occurred shortly after takeoff from Ahmedabad’s Sardar Vallabhbhai Patel International Airport, claiming the lives of 241 out of 242 passengers.
LIC has committed to providing prompt financial assistance to policyholders’ families impacted by the tragedy. The insurer has announced concessions aimed at mitigating the hardships faced by claimants. “LIC has announced many concessions to mitigate the hardships of the claimants of LIC policies. In lieu of death certificates, any evidence in government records of death of the policyholder due to the plane crash or any compensation paid by central/state government /airline authorities will be accepted as proof of death,” the insurer said in a statement.
For claims: LIC said should claimants require additional assistance, they are encouraged to reach out to the nearest branch or division of LIC. Alternatively, claimants can contact LIC’s call centre at 022-68276827 for further support.
LIC emphasised its proactive approach to reach out to claimants for the swift processing of claims, ensuring support is delivered expeditiously to the affected families. This approach is crucial in providing timely relief to those who have suffered immense loss.
Similarly, Bajaj Allianz Life Insurance is taking urgent action to assist families of its policyholders affected by this incident. “With utmost urgency, an expeditious process has been established to swiftly settle these policy claims,” the company stated. It has simplified the documentation process, allowing nominees, legal heirs, or policyholders to more easily submit their claims. “In response to this unfortunate incident,” the company added, “it has activated special measures to assist families of its policyholders affected by the crash.”
Air India mishap and compensation
The London-bound Air India Boeing 787, carrying 242 people, crashed shortly after takeoff from Ahmedabad International Airport on Thursday, June 12. Among those on board were 169 Indian nationals, 53 British citizens, one Canadian, and seven Portuguese nationals.
In the aftermath of the tragedy, Air India has announced an ex gratia payment of ₹1 crore for the families of passengers who lost their lives. However, this is only the beginning of what could become a major aviation insurance case, with total claims estimated to reach as high as ₹1,000 crore, according to industry experts.
The compensation to passengers will be governed by the Montreal Convention, 1999, which sets international standards for airline liability in the event of injury or death. India ratified this convention in 2009. As per the treaty, airlines are automatically liable to pay up to 128,821 Special Drawing Rights (SDRs) per passenger—roughly ₹1.4 crore based on the October 2024 SDR valuation of around $1.33 per SDR.
Additional compensation beyond this threshold may also be awarded if the airline is found negligent, experts added.
“While initial compensation has been announced, the final payouts will depend on the Montreal Convention framework,” said Amit Agarwal, Managing Director and CEO of Howden Insurance Brokers (India). “Airlines calculate liability using the SDR value, and the total compensation can vary depending on coverage and fault established.”
Air India has insured its fleet under a $20-billion global aviation insurance programme. This is split into hull insurance, which covers physical damage to the aircraft, and liability insurance, which covers legal responsibilities and passenger claims.
As investigations proceed, aviation insurers and legal experts will assess claims across multiple jurisdictions, given the international mix of passengers, while affected families navigate both immediate relief and long-term compensation procedures.
Inpiring story there. Whatt happened after? Goodd luck!