The Insurance Regulatory and Development Authority of India (IRDAI) has advised the insurers to relax norms and to work with `utmost efficiency’ in supporting the victims and their family members without any denial or delay in settlement of claims.

On June 12 an Air India Flight 171, a Boeing 787-8 Dreamliner, crashed into BJ Medical College hostel, shortly after take-off from Sardar Vallabhbhai Patel International Airport in Ahmedabad, India. The flight was en route to London Gatwick and was carrying 242 people, including 230 passengers and 12 crew members. 

“It is with deep pain and anguish that IRDAI expresses its condolences to all the families of the victims of this incident. The Insurance Sector, as always, given its purpose to support through insurance during such incidents, will remain committed and serve the families of the victims with the quickest possible support through settlement of claims,’‘ the regulator said in a circular. 

The insurers were advised to immediately obtain the authenticated list of the victims of the crash - passengers in the plane and persons at the affected buildings of the crash area -  from relevant authorities and verify the details, as available in the respective data base of the insurers on issuance of the Overseas Medical Insurance policies, Personal Accident policies and Life Insurance policies and initiate fast-track processes for claim settlement relating to this incident:

The IRDA also asked insurers to waive requirements such as FIR or post-mortem reports where official confirmations are available and settle the claim to the nominee as recorded in the policy. 

“Ensure that no claim is denied or delayed on account of procedural formalities in the case of confirmed deceased individuals from the passenger list and persons at the affected buildings of the crash area,’‘ the circular said. 

Joint cell

With regard to the incident of crashing into BJ Medical College hostel and other buildings at  the crash area, a dedicated joint cell arranged by both Life Insurance Council and General Insurance Council may be established at the Hospital.

Each insurer shall nominate a Nodal Officer at Senior level who shall be coordinating with the Joint Cell, who will be responsible for speedy settlement of the claims of their Insurance Company. 

Insurers are requested to submit a report to the Authority starting June 16, 2025 on weekly basis for a month and subsequently, as may be directed as per the formats enclosed. 5. Both the Councils shall publish the insurer-wise summary level claims settlement data on their websites. 

“This is a moment that calls for compassion, responsiveness, and the utmost efficiency in supporting affected families,’‘ the regulator said.

In the meanwhile, Life Insurance Corporation of India, SBI Life and Bajaj Allianz Life already began the process to expedite the claim settlement process. 

More Like This

Published on June 14, 2025