GIC may see Rs 75 cr claim from Malaysian missing flight
14 Mar, 2014 02:02 PM
The country's sole reinsurer General Insurance Corporation of India (GIC) is likely to see a claim of around Rs 75 crore from the missing aircraft of Malaysian Airlines as per its initial estimate but said most of the claim amount is reinsured.

"We may see a claim of around Rs 75 crore. But, this is as per very initial estimate. However, substantial part of is reinsured. So, the actual impact will be very less," GIC Chairman and MD A K Roy told PTI.

As per reports, the Malaysian plane might have been insured for around USD 400 million out of which GIC has 3 per cent share of total claim.

He also said these estimates have been done presuming that there would be total claim arising out from the aircraft.

Malaysia Airlines flight MH370 with 239 passengers went missing last Saturday night with no trace so far, even after a multi-nation massive air and water search operations.

While the whereabouts of the plane are not known yet, the general insurer has done its initial estimate taking into account a total claim arising from this incident.

An airline is insured for passenger liabilities and liabilities arising from its parts.

Globally, airlines take insurance cover from various insurance companies, which in turn is reinsured from many reinsurers.

Given the scale of liability, usually a consortium of reinsurers underwrite such risks to share the claims in case of any untoward incident.
Source : Business Standard

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