Air India crash triggers ₹39.4 billion insurance claim, one of India's largest in aviation history

The recent crash of an Air India passenger aircraft is set to trigger one of the largest aviation insurance claims in India's history, with the total value estimated to be around $475 million. The claim will be paid out by a consortium of insurers, led by Indian public sector insurance companies, with a significant portion being covered by global reinsurers. The total claim amount includes the value of the aircraft's hull, which is a complete loss, as well as the substantial liability claims for the passengers and crew on board. The passenger liability component, which covers compensation for death and injury, is governed by international conventions. This massive claim underscores the immense financial risks involved in the aviation industry and the critical role that a robust insurance and reinsurance market plays in providing a financial backstop for such catastrophic events.