Ahmedabad plane crash: How travel insurance helps during an accident

On Thursday, the country witnessed the horrific accident involving Air India's AI-171 flight from Ahmedabad to London. The Boeing 787 Dreamliner with 230 passengers and 12 crew members on board, crashed soon after taking off from the Sardar Vallabhbhai Patel Ahmedabad airport.

As the nation grapples with the horror, and the extent of casualties is being ascertained, the catastrophic incident has reignited discussions on travel safety and preparedness. Experts stress on the vital role of comprehensive travel insurance not just for medical emergencies, but also for accidental death, evacuation, and repatriation. In crises like these, financial protection can be as critical as emotional support.

Meet Kapadia, Head of Travel Insurance at Policybazaar, said, "If a passenger unfortunately loses their life in an accident like this, the accidental death benefit under travel insurance helps the affected family. It ensures the family receives a lump sum payout, often ranging from ₹10 to ₹15 lakh if the sum insured is around $150,000, helping them navigate the difficult time financially."

"Such policies also typically cover emergency medical evacuation, which can be critical if a passenger needs to be airlifted or transferred to a specialised medical facility for urgent treatment. In the unfortunate event of a fatality, the insurance also takes care of repatriation of mortal remains, ensuring the deceased can be brought home with dignity, without placing the logistical or financial burden on the family," added Kapadia.

Most insurers today have fast-tracked mechanisms in place for processing such emergency claims. Dedicated helplines, priority claim settlements, and immediate coordination with hospitals and family members are often activated in such scenarios to ensure support is extended swiftly.

Tata pledges aid and solidarity

Besides, N Chandrasekaran, Chairman, Tata Sons, said the Tata Group will provide ₹1 crore to the family of each individual who lost their life in this tragedy. We will also bear the full medical expenses of the injured and ensure they receive the best possible care and rehabilitation.

"In addition, we will extend our support to the reconstruction and development of the B J Medical College hostel, reaffirming our commitment to the community during this difficult time. We stand in solidarity with all those affected by this unimaginable loss," he added.

Ahmedabad crash spurs insurance rethink

Expressing deep sorrow over the tragic Ahmedabad plane crash, Narendra Bharindwal, President of the Insurance Brokers Association of India (IBAI), said, "We express our deepest condolences to those who lost their lives in this unfortunate incident and extend our heartfelt prayers and strength to their families during this difficult time."

He explained that in cases involving large commercial aircraft such as the Boeing 787, insurance coverage is both substantial and globally structured. “The aircraft hull alone can be valued between $200 to $300 million, and liability coverage—particularly for international routes like those to Europe—typically exceeds $500 million,” Bharindwal noted.

He further elaborated that major airlines like Air India arrange aviation insurance on a fleet basis, with the risk spread across international markets such as London and New York. No single insurer shoulders the full liability. “Global reinsurers hold small shares—sometimes just 1.5% to 2%—while a lead reinsurer may carry 10-15% of the total risk,” he said.

While immediate premium changes are unlikely, Bharindwal cautioned that multiple global incidents, including this one, will affect future renewals. “We expect a hardening of the aviation insurance market, not only for the airline involved but across the entire aviation sector in the next underwriting cycle,” he added.