Archive · 13 Jun 2025
Air India Crash: Insurance Payouts and Coverage Explained
When an Air India plane crashes, the money given to the people affected is decided by a special agreement called the Montreal Convention.
The amount depends on where the passengers are from.
The insurance covers the plane and how much it was worth.
Several different insurance companies share the cost, not just one.
This means that the financial impact is spread out around the world, reducing the impact on any single insurer.
Insurance payouts for the Air India crash will be governed by the Montreal Convention.
The minimum liability depends on the nationality of the passengers.
Compensation is calculated using Special Drawing Rights (SDRs), which stood at 128,821 SDRs as of October 2024.
Aircraft damage compensation will be covered under aviation hull all-risk insurance.
No single insurer bears the entire risk; coverage is distributed globally.
- Who
- Air India, passengers, insurers, and global reinsurers.
- What
- Insurance payouts for the Air India crash are calculated using the Montreal Convention and Special Drawing Rights (SDRs).
- When
- October 2024 for SDR value.
- Where
- Global aviation market.
- Why
- To determine compensation following the Air India plane crash.
- Governing Convention
- Montreal Convention
- SDR Value
- 128,821 (as of October 2024)
- Aircraft Insurance Type
- Aviation hull all-risk
- Aircraft involved
- Boeing 787 Dreamliner
- Aircraft Value
- $211 million to $280 million
Sources
Why Airplane Passenger Insurance Is A Must-Have For Indian Travellers? See Here
Tips for Choosing the Best Travel Insurance in 2025
Who is Ramesh Vishwaskumar? Lone Survivor of Air India Plane Crash That Killed 241 in Ahmedabad?
Explained: How aviation insurance works and what the Air India crash may trigger
Air India, SpiceJet May Face $40–50 Mn Insurance Hike; Airfares Likely To Rise 2–5%: Report