Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a tragic event, a Saurya Airlines aircraft en route to Pokhara for a routine C-Check crashed seconds after takeoff from Tribhuvan International Airport (TIA). The aircraft, a Bombardier CRJ 200, was insured by Prabhu Insurance for Rs 300 million.
The aircraft, acquired by Saurya Airlines at a cost of Rs 300 million, had comprehensive insurance coverage through Prabhu Insurance. In the aftermath of the crash, Prabhu Insurance is liable for compensation up to Rs 300 million. However, due to reinsurance arrangements with a British company, Prabhu Insurance will only cover a small fraction of this amount.
Specifically, Prabhu Insurance will be responsible for just 0.3 percent of the total liability, equating to Rs 900,000. The remaining 99.7 percent of the liability will be handled by the foreign reinsurance firm.
Additionally, the families of the deceased passengers are insured for $20,000 per individual. At Wednesday’s exchange rate, this translates to Rs 2,684,200 per passenger.
This incident highlights the critical role of insurance and reinsurance in mitigating financial impacts following aviation accidents. The cooperation between domestic and international insurance providers ensures substantial coverage for such unfortunate events.
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