Air India crash: Financial implications of a major disaster
Air India's flight AI171, a Boeing 787-8 Dreamliner, crashed just after taking off from Ahmedabad, leading to the tragic loss of at least 265 lives. This is now India's most expensive aviation disaster—compensation for each passenger is set at about ₹1.8 crore under international law, with Tata Group adding another ₹1 crore per victim.
Total claims could top $340 million
The plane itself was insured for around $115 million, but total claims could top $280 million (that's roughly ₹2,400 crore). While Indian insurers like Tata AIG are on the front line, much of this risk is shared globally through reinsurance—which means this crash might push up future flight insurance costs in India.
Airlines operate on very thin margins
Beyond the heartbreaking human cost, this crash highlights just how massive and complex airline safety and financial responsibilities can be today—something that affects anyone who flies or follows big news stories in India.