Air India crash costs $85m

The Air India Express plane crash in Mangalore is estimated to result in an insurance claim that could reach $85m – the largest payout in Indian aviation history, Emirates Business reports.

The National Aviation Company of India (Nacil) – the holding company for Air India, Indian and Air India Express – and its fleet of 134 aircraft are insured by a consortium of private insurers, led by Reliance General, along with HDFC Ergo, Bajaj Allianz and Iffco Tokio.

They are reinsured with General Insurance Company, ICICI Lombard and Sumitomo. The report claims Reliance General has 40%. Bajaj Allianz, HDFC Ergo and Iffco Tokio charged a premium of $24.3m for one year, starting September 2009. The total insurance cover stands at $8.59bn.

Reinsurance

General Insurance Corporation, the designated reinsurer, said in media reports that it had reinsured 14% of the risk of $8.59bn, while ICICI Lombard's share was 3%.

Chairman Yogesh Lohiya has said that the corporation would take a hit of about $6m due to the crash. GIC, however, has protected itself through retrocession with international reinsurers.