CHENNAI: India's non-life insurance major, General Insurance Corporation of India (GIC Re), estimates that total insurance claims related to the June 12 crash of Air India Flight AI 171, a Boeing 787-8 Dreamliner, could reach up to $475 million (approximately ₹39.4 billion), making it one of the country’s costliest insurance claims.
The Ahmedabad-to-London flight, carrying 242 individuals—230 passengers and 12 crew members—tragically crashed shortly after taking off from Sardar Vallabhbhai Patel International Airport in Ahmedabad.
Total claims for the Air India crash could reach $475 million, driven primarily by liability payouts, which are expected to exceed the aircraft’s value by more than 2.5 times, GIC Re stated on Tuesday. In rupee terms, this translates to approximately ₹4,091 crore (based on current exchange rates).
"The way we see it, the hull (the aircraft) will be around $125 million, and liability claims—on account of passenger liability, third-party liability, and other personal accident and travel policies—should amount to approximately $350 million," said GIC Re Chairman and Managing Director Ramaswami Narayanan.
Only one passenger, British national Vishwash Kumar Ramesh, survived the crash. Additionally, at least 38 people on the ground were killed when the aircraft struck a medical college hostel in the Meghani Nagar area.
The incident marks the first fatal crash involving a Boeing 787-8 Dreamliner and the deadliest aviation accident globally in a decade, according to aviation industry portal AviationA2Z.
Insurance Coverage and Claims
Reports indicate that in April 2025, Air India increased insurance coverage for its Boeing 787-8 Dreamliner from ₹750 crore to ₹850 crore following an engine replacement.
While the cause of the crash is still under investigation by India’s Aircraft Accident Investigation Bureau (AAIB)—with support from the United Kingdom’s Air Accidents Investigation Branch and the U.S. National Transportation Safety Board (NTSB)—preliminary findings suggest engine failure as a potential cause.
A high-level multidisciplinary committee led by the Government of India has already deliberated on various theories surrounding the country's worst air disaster in decades.
Chaired by Union Home Secretary Govind Mohan, the committee met on Monday to review expert opinions on possible causes of the crash. It also discussed the formulation of Standard Operating Procedures to prevent similar incidents in the future.
In response to the tragedy, the Tata Group, which owns Air India, announced compensation for the families of the victims and pledged support for rebuilding the destroyed medical college building.
Responding to a query from The New Indian Express, a senior aviation industry consultant said the estimated $475 million claim highlights the scale of the tragedy—one of the most devastating events in the history of Indian aviation.
"It will have far-reaching implications for the airline industry. As investigations continue, the focus remains on determining the cause of the crash and providing support to affected families and communities," the consultant added.
