IRDAI simplifies claim settlement process for Air India plane crash victims

• 14 Jun 2025
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Following the tragic crash of Air India Flight 171, the Insurance Regulatory and Development Authority of India (IRDAI) has taken immediate steps to ease the claim process for the victims’ families. The insurance regulator, in a directive issued to all insurance and reinsurance companies, has called for speedy and compassionate handling of insurance claims.

Insurers have been instructed to use the publicly released passenger list and cross-check it with their databases for life insurance, personal accident, and overseas medical insurance policies.

To speed up the process, insurance providers have been told to avoid insisting on standard requirements like FIRs or post-mortem reports in cases where death is officially confirmed. The IRDAI has clearly stated that claims should not be denied or held up over procedural formalities if the deceased appear on the confirmed passenger list or are identified victims from the crash, including those from the BJ Medical College hostel.

The IRDAI has further asked the Life Insurance Council and General Insurance Council to set up a dedicated help desk at the hospital treating the injured. This unit will liaise with insurance companies to provide up-to-date information and assistance in handling health and life insurance claims.

Every insurance company must now appoint a senior level nodal officer who'll be responsible for coordination with the joint help desk and ensure that claims are settled in a prompt manner. From June 16 onwards, insurers are required to submit weekly reports to IRDAI detailing claim settlements. Summary data broken down by insurer must also be published on the council websites as per the directive.

The crash took place on June 12 when a Boeing 787-8 Dreamliner flying from Ahmedabad to London Gatwick crashed into the BJ Medical College hostel shortly after taking off from Sardar Vallabhbhai Patel International Airport. There were 242 people on board out out of which 230 were passengers and 12 were crew members.

The IRDAI stressed that insurers must act with both urgency and compassion to ensure families receive timely and seamless financial support during this devastating period.

Several insurance providers have responded by simplifying their claims procedures for those affected.

LIC, a public sector insurer, has introduced several relaxations for policyholders' families. “In lieu of death certificates, any evidence in government records of death of the policyholder due to the plane crash or any compensation paid by Central/State Government /Airline Authorities will be accepted as proof of death,” it announced.

Similarly, HDFC Life has said that nominees or legal heirs can initiate claims by submitting proof of death from local authorities such as hospitals, the police, or government offices.

SBI Life has also eased its documentation requirements. It said it would accept “evidence of death from an official government record or entries from governmental portals, municipal records or e-governance database as proof of death,” instead of a death certificate.

“Claim can be intimated with minimum documents like claim form, Policy Document and details of KYC and bank account of the nominee,” SBI Life added. It also encouraged affected families to contact the designated nodal officer, visit their nearest SBI Life branch, or reach out to customer support for assistance in processing claims.

View IRDAI's Notification