The AirAsia crash will be the third major airline accident for one insurer, exposing the company to claims of at least $100 million.
Allianz SE said it was lead reinsurer on the flight that claimed the lives of 162 people that crashed off the Indonesian coast, and was previously the main reinsurer to Malaysia Airlines Flight 370, which disappeared over the Indian Ocean in March; as well as to Flight MH17, shot down in July while flying over Ukraine.
Allianz confirmed it had lead the provision of aviation hull and liability cover in a statement to the
Globe and Mail: “It is much too early to comment on reports of this incident… except to say that our thoughts and prayers are with all those affected by this missing flight.”
Estimated total costs would depend on liabilities for passengers, but could be between $100-million and $200-million (US), including an estimated $45-million for the plane itself.
The insurer declined comment on the extent of its exposure, or to identify others exposed to the missing Airbus A320-200.
Allianz and its co-insurers will have to foot the bill for the cost of the missing aircraft, as well as for payments due to the relatives of passengers aboard the flight – as was the case with the two Malaysia Airlines crashes.
The Montreal Convention caps initial payouts at around $165,000 a passenger at current exchange rates for personal liability, or a total of about $27-million (US) for the 162 passengers aboard the AirAsia flight.
But claims could skyrocket if the airline is found to have been at fault.
“This is going be identical to MH370 and MH17 in the sense there are standard minimum insurance obligations which all carriers have to have,” John Ribbands, a lawyer expert in aviation insurance, told the
Globe and Mail, “but if negligence can be demonstrated the sky’s the limit in terms of claims.”
