The grim events of June 12 remain etched in memory when a devastating air crash unfolded in Ahmedabad. The Air India flight AI-171 en route from Ahmedabad to London met a tragic end shortly after takeoff, affecting many. Out of the 242 passengers and crew onboard, 241 lost their lives, and over 19 individuals on the ground succumbed as well. As investigations continue, insurance companies face a surge of claims from victims' families, ranging from hotel booking cancellations to lost baggage and accidental flight death coverage.
Families of Victims File Multiple Claims
According to a PTI report, insurance companies are witnessing a steady influx of claims from relatives of those who perished in the Ahmedabad crash. These claims cover a spectrum of mishaps, from canceled hotel bookings to lost belongings, accidental death coverage, and trip cancellation insurance. Additionally, several claims have emerged under different insurance categories, including personal accident and life insurance, especially among Kisan Credit Card Holders.
ICICI Lombard has disclosed information indicating receipt of claims primarily under Travel Insurance and Personal Accident Insurance related to accidental death, journey cancellations, lost luggage, and hotel cancellations.
Priya Deshmukh, Chief of Health Products, Operations, and Services at ICICI Lombard, emphasized their commitment to support policyholders and their families during these trying times. She assured that they are prioritizing the settlement of claims to ensure timely assistance to the families of victims.
Claims Reported by Other Insurers
Post the Air India crash, other insurance companies also report claims. Bajaj Allianz General Insurance has mentioned receiving claims related to Personal Accident Cover and Marine Cargo. Their statement includes three personal accident claims and one marine cargo claim. It’s crucial to highlight that marine cargo typically protects goods transported via road, rail, air, sea, or courier.
Source: aajtak
After Life Insurance, Personal Accident Cover ranks second among the received claims. Many insurance companies, however, have yet to reveal specific claim numbers due to ongoing formal processes with victims' families. According to a report by PTI, the New India Assurance official stated the settlement of seven personal accident and five group personal accident claims, with a single 50,000 INR claim submitted under the Kisan Credit Card scheme during this period.
How and When the Crash Occurred
On June 12, 2025, India witnessed one of its deadliest air disasters of the decade. The Boeing-787 Dreamliner aircraft of Air India, bound for London from Ahmedabad, lost control soon after takeoff, crashing into a medical college hostel in the Meghani Nagar area. Out of 242 individuals onboard, only one survived amidst the tragic loss of 241 lives.
IRDAI's Instructions Post-Crash
Following the Air India Plane Crash, the Insurance Regulatory and Development Authority of India (IRDAI) directed the swift settlement of all related claims. An IRDAI circular released on June 14 instructed insurers to release weekly updates on claims starting June 16. According to the latest update, Axis Max Life Insurance's COO, Manu Lavanya, revealed that under their InstaClaim process, a claim from one of the victims' families was resolved within just three hours, showcasing their focus on efficient and compassionate response in this crucial time.
