✈️ AI Plane Crash: Insurers in a Fix as Both Policyholders and Nominees Among Dead

Date: June 18, 2025
Location: Ahmedabad, India

📉 The Dilemma Facing Insurers

The tragic crash of Air India Flight AI‑171 near Ahmedabad on June 12 claimed 241 lives onboard and 29 on the ground. In many cases, life insurers are discovering that both the policyholder and the named nominee (often a spouse) perished in the accident—a rare and complex scenario making claim settlement challenging businesstoday.in+4rediff.com+4money.rediff.com+4businesstoday.in+8livemint.com+8money.rediff.com+8.

🏛️ IRDAI Steps In

The Insurance Regulatory and Development Authority of India issued a formal advisory on June 14, ordering all life, health, and general insurers to:

Fast-track claims, waiving formalities like FIRs, postmortem or death certificates where official confirmation of death exists.
Appoint dedicated nodal officers at hospitals and crash sites.
Monitor weekly progress on settlement efforts rediff.com+3m.economictimes.com+3outlookmoney.com+3timesofindia.indiatimes.com+2m.economictimes.com+2m.economictimes.com+2.

🏦 How Insurers Are Responding

1. Help Desks & Claim Drives

Major insurers—including LIC, Bajaj Allianz, HDFC Life, New India Assurance, Iffco Tokio, Tata AIA—set up on-site help desks at Ahmedabad Civil Hospital. Proactive outreach from claims teams is ongoing money.rediff.com+4livemint.com+4english.metrovaartha.com+4.

2. Nominee‑Death Scenarios

Typically, insurers require a succession certificate when both insured and nominee are deceased. But facing this extraordinary event, companies are making exceptions:

LIC reported one such case among the first 10 claims, where spouses had nominated each other m.economictimes.com+7livemint.com+7money.rediff.com+7.
Iffco Tokio, Tata AIA—each identified at least one similar case money.rediff.com+4livemint.com+4english.metrovaartha.com+4.
Resolution is through consulting Class I heirs (e.g. children or blood relatives) and obtaining a joint declaration with an indemnity bond english.metrovaartha.com+4rediff.com+4m.economictimes.com+4.

3. Accelerated Documentation

LIC and Bajaj Allianz now accept government records or ex-gratia compensation proof in place of death certificates.
Bajaj Allianz has set up special desks to simplify documentation for legal heirs english.varthabharati.in+14businesstoday.in+14m.economictimes.com+14.

🌐 Wider Impact on Insurance Sector

Travel, personal-accident, and marine cargo policies have also seen claims made—New India Assurance settled at least one marine cargo claim (~~₹6.5 lakh); Bajaj Allianz settled travel PA and marine claims (~~₹55 lakh) money.rediff.com+3rediff.com+3m.economictimes.com+3.
The broader implications lie in:
- Setting precedent for multiple claim categories.
- Highlighting the need for industry-wide protocols in mass-casualty events.

✅ What Families Should Know

If both insured and nominees have died:

Look for legitimate Class-I heirs (e.g. children, parents, siblings).
Prepare a joint declaration among heirs on claim distribution.
Be ready to sign an indemnity bond as an assurance to the insurer.

Tips:

Approach help desks at Ahmedabad hospital or your local insurer’s office.
Use helplines (e.g. LIC: 022‑68276827).
Provide alternative proofs of death accepted by insurers.

🔍 Conclusion

This tragic crash has ushered in unprecedented insurance complexities, but responsive measures by IRDAI and proactive relief efforts from insurers aim to overcome administrative hurdles. The exceptional cases of nominees also perishing are being managed compassionately, with priority given to Class-I heirs—a testament to the industry’s flexibility in crisis.

The evolving process will set new standards for claim handling in future large-scale disasters—balancing legal diligence with human sensitivity.

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