Air India crash: Insurance companies grapple with claim complexities in some cases
Ahmedabad (PTI): The devastating Air India 171 plane crash, which claimed 241 lives on board and 29 on the ground, has created an unforeseen challenge for insurance companies to settle some claims where even the designated nominees have also died in the accident.
This has added another layer of administrative burden for grieving families, while the insurance industry is navigating uncharted territory striving to balance due diligence with compassionate expediency.
The Insurance Regulatory and Development Authority of India (IRDAI) has issued directives to fast-track claims.
In its June 14 circular, IRDAI asked all insurance companies to submit weekly updates on claims from June 16 onwards and further directed them to appoint nodal officers, waive formalities such as FIRs and postmortem reports, and expedite disbursals under life and personal accident policies.
There have been some cases where the entire family has perished or both spouses died in the crash, which are making the claims process particularly complex.
Major insurance providers, including Life Insurance Corporation of India (LIC), New India Assurance, HDFC Life, Iffco Tokio General Insurance, Bajaj Allianz General Insurance Company (GIC), and Tata AIG Insurance, quickly set up help desks at the Ahmedabad Civil Hospital to expedite the process.
They are actively matching data from authorities with their records and proactively reaching out to affected families.
However, while other cases were streamlined, complexities arose in instances where both the policyholder and their nominee died in the crash.
Aamir Khan Pathan, Administrative Officer (Claims Department) at LIC, the country's largest insurer, highlighted this challenging scenario saying "in a few cases, the husband and wife both perished in the crash and had nominated each other as their policy".
Ashish Shukla, another Administrative Officer with LIC, said that out of 10 claims received so far, one involves a situation where the insured nominated their spouse, and both died in the accident.
Similarly, Manpreet Singh Sabharwal, Manager (Claims) at Iffco Tokio General Insurance Company, cited a case where a company director and his wife died, with the wife being the nominee.
Nischal Buch, Principal Officer, Zonal Operations, Tata AIG, also reported one such case among the seven claims his company has received.
Typically, when both the insured and nominee die, insurance companies require a succession certificate to identify the rightful heirs. However, given the extraordinary circumstances of the air crash, companies are making exceptions.
"If both the insured as well as the nominee have died, we look for Class I heirs, which is typically the blood relatives like children," Shukla from the LIC explained.
"If there are multiple children, then we take a declaration from the heirs on how the claim is to be settled and an indemnity bond has to be submitted to the company," he said.
Buch added that their legal team is exploring the possibility of seeking joint declarations from all heirs to streamline the process in these complex cases.
The impact of the crash extends beyond life insurance.
Prakash Khanchandani, Administrative Officer with The New India Assurance, stated that his company has received seven claims: five related to personal accident policies and two for marine cargo that was onboard the flight. One marine cargo claim, worth Rs 6,50,000, has already been settled.
For personal accident policies, nominees are still in the process of submitting details as families deal with the aftermath of losing loved ones.
Bajaj Allianz reported four claims, including a marine cargo claim of Rs 55 lakh and three travel insurance policies, each for Rs 10 lakh, all involving passengers who perished in the accident.
"We have currently settled three claims under our Travel Personal Accident insurance. In addition, one claim has been registered under our Marine Cargo insurance," the company told PTI in response to a query.
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Karnataka offers extensive incentives in its proposed IT policy
Bengaluru (PTI): Karnataka has proposed a new Information Technology Policy for 2025–2030, offering extensive financial and non-financial incentives aimed at accelerating investments, strengthening innovation and expanding the state's tech footprint beyond Bengaluru.
The Karnataka Cabinet gave its nod to the policy 2025–2030 with an outlay of Rs 445.50 crore on Thursday after the Finance Department accorded its approval.
The policy introduces 16 incentives across five enabler categories, nine of which are entirely new, with a distinctive push to support companies setting up or expanding in emerging cities.
Alongside financial support, the government is also offering labour-law relaxations, round-the-clock operational permissions and industry-ready human capital programmes to make Karnataka a globally competitive 'AI-native' destination.
According to the policy, units located outside Bengaluru will gain access to a wide suite of benefits, including research and development and IP creation incentives, internship reimbursements, talent relocation support and recruitment assistance.
The benefits also include EPF reimbursement, faculty development support, rental assistance, certification subsidies, electricity tariff rebates, property tax reimbursement, telecom infrastructure support, and assistance for events and conferences.
Bengaluru Urban will receive a focused set of six research and development and talent-oriented incentives, while Indian Global Capability Centres (GCCs) operating in the state will be brought under the incentive net.
Incentive caps and eligibility thresholds have been raised, and the policy prioritises growth-focused investments for both new and expanding units.
Beyond incentives, the government focuses on infrastructure and innovation interventions.
A flagship proposal in the policy is the creation of Techniverse -- integrated, technology-enabled enclaves developed through a public-private partnership model inside future Global Innovation Districts.
These campuses will offer plug-and-play facilities, artificial intelligence and machine learning and cybersecurity labs, advanced testbeds, experience centres, and disaster-resistant command centres.
There will also be a Statewide Digital Hub Grid and a Global Test Bed Infrastructure Network, linking public and private research and development, and innovation facilities across Karnataka.
The government has proposed a Women Global Tech Missions Fellowship for 1,000 mid-career women technologists, an IT Talent Return Programme to absorb experienced professionals returning from abroad, and broad-based skill and faculty development reimbursements.
Shared corporate transport routes in Bengaluru and tier-two cities will be designed with Bengaluru Metropolitan Transport Corporation and other transport entities to support worker mobility.
The government said the policy is the outcome of an extensive research and consultation process involving TCS, Infosys, Wipro, IBM, HCL, Tech Mahindra, Cognizant, HP, Google, Accenture and NASSCOM, along with sector experts and stakeholder groups.
It estimates an outlay of Rs 967.12 crore over five years, comprising Rs 754.62 crore for incentives and Rs 212.50 crore for interventions such as Techniverse campuses, digital grid development, global outreach missions and talent programmes.
