Dana Insurers to Pay N5 billion

DanaplanecrashAs seven Nigerian insurance companies will be involved in the payment of compensation to the victims of Dana Plane crash, over N5 billion may be required for the insurance claims , the Economic Confidential gathered from regulatory authorities.
The insurers will pay the families of the passengers of the ill-fated flight and the third party liability claims to victims on the ground and individuals whose properties were destroyed when the plane crashed into their buildings.

The Economic Confidential gathered that a consortium of local underwriters and re-insurers, led by Prestige Assurance Plc, owned by Indians, will pay the bulk of the compensation to the relatives of the victims and owners of the properties, unless the government intervene in footing some of the bills arising from the displaced people from the crash scene.

Under the Montreal Convention, air carriers are strictly liable for proven damages up to $113,100 special drawing rights which was updated from 100,000 on December 31 2009. A mix of currency values established by the International Monetary Fund ,approximately $138,000 per passenger at the time of its ratification by the United States in 2003 (as of December 2011, around $175,800).

While Montreal Convention was brought about mainly to amend liabilities to be paid to families for death or injury whilst on board an aircraft, it does not foreclose victims that could be on the ground while a plane crashes.

The crash claimed the lives of at least 170 people including passengers, seven crew members and residents of the Agege area of Lagos State.Dana-Crash-3

Meanwhile the National Insurance Commission (NAICOM) said it will ensure the payment of insurance claims to beneficiaries of the victims of the Dana Air plane crash in Lagos. The Head, Corporate Communications, Lucky Fiakpa, who gave the assurance said that the aircraft was properly insured and all reinsurance contracts were duly entered into.

NAICOM consoled the families of those who lost their lives in the ill-fated flight, noting that no amount of money was sufficient to compensate them.

Dana Air’s Flight 0992 crashed into residential buildings in the Iju-Ishaga area of Lagos on Sunday, June 3, 2012 killing the 153 people on board. Other innocent citizens on the ground were also killed as the aircraft plunged into buildings.

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