New Delhi: The Reliance General-led consortium which insured Air India’s fleet, including the aircraft that crashed in Mangalore, might not be hit hard through the accident, as they had taken re-insurance.

Usually, all large risk, such as that of airlines, is re-insured. It assists general insurance plan businesses mitigate monetary risk in situation of statements arising out of harm, mentioned insurance plan authorities.

The bulk of the burden would be about the re-insurers as far as claim settlement in this case is concerned, mentioned Optima Danger Management chief executive officer Rahul Aggarwal.

Based on insurance plan business sources, the Oxygen India fleet is insured by four private businesses led by Reliance Common. The other common insurers include Bajaj Allianz, HDFC Ergo and Iffco Tokio.

This was reinsured by Japanese insurer Mitsui Sumitomo and General Insurance Corporation of India together, sources said.

Airline insurance is specialised insurance plan due to its nature. It’s low frequency but higher impact, he mentioned, adding, airline crashes doesn’t happen often, but once they do, the statements are huge.

Asked about the loss Reliance General would incur because of the crash, its spokesperson mentioned like a policy, the company doesn’t comment on individual policy particulars and statements.

Meanwhile, Air India announced an interim compensation for that victims from the oxygen crash, including Rs10 lakh for the families of individuals above 12 years of age.

“They (Oxygen India) were in talks with insurance companies, such as Reliance Insurance and General Insurance plan Organization, on payment of compensation,” said Oxygen India chairman and managing director Arvind Jadhav.

“We are announcing an interim compensation. We will give them money immediately,” he mentioned.

The kin of the deceased who are above 12 years of age will be provided Rs10 lakh, while the families of individuals beneath this age will get Rs5 lakh. Air India will pay Rs2 lakh as interim compensation towards the injured.

He said 128 bodies have been identified and handed more than to relatives.

“Eighteen more bodies have been identified and also the post mortems are in progress. Twelve bodies have not been identified as yet,” Jadhav mentioned.

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