March 28, 2024

NICL,AIG,and MARSH will Pay heavy claims in a plane crash,insured for $19.7 million

Karachi. (Beemakar Report) NICL,AIG,and MARSH will Pay heavy claims in a plane crash.The ill-fated PIA A320 aircraft that crashed near Karachi airport on May 22 was insured for $19.7 million and every passenger was insured for Rs5m each.

According to PIA Spokesperson “The hull insurance of [the aircraft] AP-BLD 2274 is US$19.7 million and the amount will go to the owner [of the plane] from whom the PIA acquired it on lease,”

In aviation, the ‘hull insurance’ provides coverage for the physical damage of an airplane, whether the damage occurs on the ground or during flying. it is also learn that being a government company the National Insurance Company Limited (NICL) was the insurer and Marsh was the reinsurance broker.A Reuters report said that AIG was the lead reinsurer.

The NICL had insured the entire fleet of aircraft “owned or operated” by the PIA for the period between Dec 30, 2019 and Dec 29, 2020, according to the certificate of insurance posted on the PIA website.

The aircraft in question was owned by the Celestial Aviation Trading 34 Limited, Ireland, which would get the insurance amount, not the PIA.The insurance amount for the aircraft would go to its owner, not the airline

Ninety-seven passengers and crewmembers of flight PK-8303 from Lahore to Karachi died in the plane crash. Only two passengers miraculously survived.

About the passengers, the PIA spokesperson said they were also insured by NICL for Rs5m each. “The family of each victim is being provided Rs1m for making arrangements for burial. In addition, the legal heirs of those who died in the crash would get Rs5m each.”

He said PIA would process and submit the claims on behalf of every affected family after completing the required legal formalities. “Last time, it took five-six months [to get insurance amount],” he said referring to the 2016 ATR crash near Havelian in which all the 47 aboard died.

Insurance industry sources said the insurance was reinsured into international reinsurance markets. One source familiar with the matter said AIG was the lead reinsurer.AIG did not respond immediately to a request for comment.

The government has started paying compensation to families of those who were killed in the Pakistan International Airlines (PIA) plane crash in Karachi on May 22.According to PIA spokesman, in the initial phase, compensation has been paid to 36 families of those who were killed plane crash, while the heirs of the remaining passengers will also be paid in the next 24 to 48 hours. However, the families of 15 martyrs have refused to accept compensation.

On the other hand, the family members will be able to get Rs 5 million each for which 57 out of 97 dead passengers have been included in the insurance list. The spokesman said payment of compensation and insurance to the families of the martyrs will be made possible immediately.

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