Compensation to families of the 239 passengers of the Malaysia Airlines MH 370 flight that is believed to have crashed into the Indian Ocean may not face any legal hurdle even if the wreckage of the aircraft remains untraceable, insurance experts said today.
As far as compensation to the airline is concerned, they said it would depend on the terms of the contract it had with insurance companies. But they added insurance firms have paid claim in most such previous instances.
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A woman breaks into tears as she joins a ceremony in memory of passengers on board the missing Malaysia Airlines Flight MH 370 in Kuala Lumpur, Malaysia. (AP)
'Individual liabilities are covered under international conventions. So, there is no difficulty in paying such claims if some official document regarding loss of lives are provided to insurance companies,' Tata AIG General Insurance Chief Executive Officer K K Mishra said here.
A woman places a paper crane as a symbol for hope and healing during a ceremony in memory of passengers on board the missing Malaysia Airlines Flight MH 370 in Kuala Lumpur. (AP)
He, however, added payment of claims of Malaysian Airlines by insurers would depend on the reinsurance arrangement and fine print in the contract.
A relative of a passenger aboard Malaysia Airlines flight MH 370 reacts after hearing a briefing from Malaysian government officials at the Lido Hotel in Beijing. (Reuters)
Though the flight MH370 with 239 passengers, including five Indians, is said to have crashed into the ocean, any debris of the jet, a Boeing, is yet to be traced, which can be taken as conclusive evidence for paying insurance claims.
A woman looks at messages dedicated to passengers aboard the Malaysia Airlines flight MH 370 and their family members, while Malaysian government officials hold a briefing to the family members in Beijing. (Reuters)
An official of General Insurance
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