Ethiopian Airlines Fall, How Much Insurance Does the Victim’s Family Receive?

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The fall of the Ethiopian Airlines, Boeing 737 MAX 8, in Addis Ababa has killed all passengers with a total of 157 people on Sunday (03/10/2019)

Surely this makes Ethiopian Airlines must immediately disburse insurance funds for families of victims of the airline. This will be done by Willis Tower Watson as the main insurance company for Ethiopian Airlines or Chubb.

Not only Ethiopian Airlines has to pay this loss, it turns out that Boeing Co also must immediately pay insurance for the families of victims of the incident.

This can happen if Ethiopian Airlines can prove Boeing Co. aircraft damaged, the victims of Ethiopian Airlines will also get insurance from Boeing Co., in this case represented by Britain’s Global Aerospace, the main insurance company for Boein and also Lion Air.

“If there are defects in the components of the aircraft, the victim’s family can claim insurance from the airline and from the aircraft manufacturer,” explained Clive Garner, head of Irwin Mitchell’s law firm’s travel litigation group in London, England.

Usually the airline insurance company will make a consortium to share the risk of claims. The main insurer will be responsible for most risks. According to industry sources from the Reuters page, the value is estimated at USD 50 million, equivalent to IDR 712.1 billion (USD 1 exchange rate = IDR 14,242)

Meanwhile, according to Reuters calculations based on the Montreal convention, the cost of initial compensation for 157 victims who died reached USD 25 million or Rp. 356 billion.

This Convention will give a maximum of 113,100 special drawing rights worth USD 1.39 for deaths or injuries suffered by passengers, but not all countries use this convention.

Clive added, initial insurance payments to families of victims of these passengers were bound by the Warsaw and Montreal conventions. However, the amount they get can be much higher if families claim through legal channels, especially in US courts.

This is done because in the US the payment of legal compensation for victims of accidents will reach USS 2 million (equivalent to Rp. 28.4 billion) to USD 3 million (Rp. 42.7 billion). While from Ethiopian Airlines, they will only get USD 200 thousand or Rp 2.8 billion.

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