IRDAI directs insurers to expedite Air India Flight 171 claims

Settlement is to be made directly to nominees listed in policies.

India’s insurance regulator has instructed all insurers and reinsurers to expedite the processing of claims related to the 12 June crash of Air India Flight 171, which struck the BJ Medical College hostel shortly after departing from Ahmedabad for London Gatwick.

The aircraft was carrying 242 individuals, including 230 passengers and 12 crew members.

The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurers to initiate immediate action, including retrieving authenticated lists of victims from relevant authorities and verifying insurance coverage against their databases. 

Overseas medical insurance was mandatory for all passengers on the flight.

Insurers are instructed to process claims without insisting on documentation such as FIRs or post-mortem reports where official confirmations are available. 

Settlement is to be made directly to nominees listed in policies, and procedural delays or denials are to be avoided in cases involving confirmed fatalities.

In addition to individual insurer action, IRDAI has called for the establishment of a joint claims assistance cell at the hospital where victims are being treated. 

This cell will be jointly managed by the Life Insurance Council and the General Insurance Council, and will serve as a liaison point for insurers.

Each insurer is required to appoint a senior-level nodal officer responsible for coordinating with the joint cell to ensure timely settlement.