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Business Jun 17, 2025

Air India crash spurs $475-Million insurance claims

The tragic Air India crash in a densely populated part of Ahmedabad, which took 241 lives, is set to spark one of India's largest-ever aviation insurance claims.
The total claim—$475 million—covers both the destroyed aircraft and compensation for passengers and others affected.
To put it in perspective, that's about three times what Indian airlines usually pay for insurance in a whole year.

TL;DR

Global reinsurers will handle most of this huge payout

Most of this huge payout will be handled by global insurers since Indian companies pass on most of their risk abroad.
This could push up insurance costs for all Indian airlines soon.
Plus, because some victims were foreign nationals, the final payout might climb even higher due to international compensation rules.
The incident is making both local and global insurers rethink how they handle risks and costs in the future.