Following the tragic Air India Flight 171 crash in Ahmedabad on June 12, 2025, the Insurance Regulatory and Development Authority of India (IRDAI) has moved quickly, urging all insurers to fast-track claim settlements for victims and their families.
Key Directives for Insurers
The IRDAI has issued several crucial directives to ensure prompt support:
- Expedited Claims Processing: Insurers must prioritize and accelerate claims for Overseas Medical Insurance, Personal Accident policies, and Life Insurance.
- Waiver of Formalities: To prevent delays, requirements like FIRs or post-mortem reports can be waived when official confirmations of death are available from authorities.
- Direct Settlement to Nominees: Claims are to be settled directly to the nominee listed in the policy. No claims should be denied or delayed due to procedural issues for confirmed deceased individuals.
- Victims Onboard: Given that overseas medical insurance was mandatory for the London-bound flight, insurers must obtain authenticated victim lists and verify details against their policy databases.
- Victims on the Ground: A dedicated joint cell, set up by the Life Insurance Council and General Insurance Council, will be established at the hospital treating victims. This cell will help disseminate information to insurers regarding health and life insurance claims. Insurers are also required to appoint a senior-level Nodal Officer to coordinate with this cell.
- Regular Reporting: Insurers must submit weekly reports to the IRDAI starting June 16, 2025, for a month, with further reporting as directed.
Compensation and Investigation Efforts
Beyond insurance, significant support is coming from other sources:
- Air India and Tata Group Compensation: Tata Group will provide ₹1 crore to the families of each deceased individual, with Air India adding an interim payment of ₹25 lakh. All medical expenses for injured individuals, both on the plane and on the ground, will be fully covered.
- International Protocols: Under the Montreal Convention, Air India, via its insurers, will pay 128,821 Special Drawing Rights (SDRs) per deceased passenger, which currently translates to approximately ₹1.5 crore.
- Ongoing Investigation: Both the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) (the “black boxes”) have been recovered. India’s Aircraft Accident Investigation Bureau (AAIB), supported by the US NTSB and UK’s Air Accidents Investigation Branch, is investigating the crash. Initial theories point to a potential thrust failure post-takeoff. The DGCA has also ordered fleet-wide safety checks for Air India’s Boeing 787 aircraft.
- Victim Support: The Gujarat State Legal Services Authority (GSLSA) has launched a helpline for victims and families, offering assistance with documentation and legal services. Air India has also deployed over 100 caregivers and established assistance centers in Ahmedabad, Mumbai, Delhi, and London to support families with travel, lodging, and psychological care.