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South Korea’s Jeju Air crash insured by Samsung Fire & Marine and 4 others, reinsured by AXA XL

by AIP Online Bureau | Dec 30, 2024 | International News, Non-Life, Reinsurance | 0 comments

The aviation insurance industry could be looking at a claim for about $15-$20 million under the airline hull insurance policy, and total passenger liability claims of $120-$180 million due to the crash, according to Marcos Alvarez, managing director of global insurance ratings at Morningstar DBRS

South Korea’s crashed aircraft- Jeju Air flight 7C2216- that killed 179 people , was majorly insured by Samsung Fire & Marine Insurance and reinsured by AXA XL.

There are four other insurers involved  in providing cover to the ill fated aircraft which crashed in Muan International Airport On Sunday while  arriving from the Thai capital Bangkok with 181 people on board.

The five insurers involved have written 99% of the cover.

The aviation insurance industry could be looking at a claim for about $15-$20 million under the airline hull insurance policy, and total passenger liability claims of $120-$180 million due to the crash, according to Marcos Alvarez, managing director of global insurance ratings at Morningstar DBRS.

The crashed aircraft had a cover  worth $1.03651 billion, with a compensation limit of $1 billion and a compensation limit of $36.51 million for damage to the aircraft itself.

The compensation limit for victims of Jeju Air’s passenger plane is $1 billion.

South Korean financial authorities have taken  measures to provide prompt compensation to the families of the dead and injured from the five insurers involved.

All aircraft in the accident are insured for aviation insurance worth $1.03651 billion (KRW 1.5257 trillion), with a compensation limit of $1 billion (about 1.472 trillion won) and a compensation limit of $36.51 million (about 53.7 billion won) for damage to the aircraft itself.

Jeju Air CEO Kim E-bae emphasised the airline’s cooperation with authorities, adding: “At present, it is difficult to determine the cause of the accident, and we must wait for the official investigation announcement from the relevant government agencies.”

“We are currently working to determine the exact cause and details of the situation,” a Jeju Air spokesperson said. The airline clarified that the aircraft, in operation for 15 years, had no previous accidents or reported malfunctions.

Two crew members, a man and a woman, were rescued from the tail section of the burning plane, Muan fire chief Lee Jung-hyun told a briefing.

“Only the tail part retains a little bit of shape, and the rest of (the plane) looks almost impossible to recognise,” he said.

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