Air India crash to spike aviation insurance premiums
After an Air India Boeing 787 crashed near Ahmedabad, insurance claims are expected to cross ₹1,000 crore—making this the biggest aviation payout in India so far. With this incident and other global losses, Indian airlines could see their insurance premiums jump by 10-15% next year.
How the insurance policy works
Air India's planes are protected under a $20 billion policy that covers both damage to the aircraft and third-party liability. The recent crash means payouts will cover not just the plane but also damages caused when it hit a residential area. Big names like New India Assurance and Tata AIG handle these policies, backed by international reinsurers.
Airlines may pass on rising costs to passengers
With rising insurance costs, airlines may pass some of that expense on to passengers—so airfares could go up by 2-5%. This is part of a bigger trend as the aviation industry faces more accidents and tricky legal battles over stranded planes worldwide.