Air India flight crash: IRDAI issues advisory, urging insurers to fast-track claim settlements

In the wake of the Air India flight crash in Ahmedabad last week, the Insurance Regulatory and Development Authority of India (IRDAI) has issued an advisory to all insurers, urging them to fast-track processes for claim settlement.

On June 12, 2025, Air India Flight 171, a Boeing 787-8 Dreamliner, crashed into the BJ Medical College hostel shortly after takeoff from Sardar Vallabhbhai Patel International Airport in Ahmedabad, India.

The London-bound flight was carrying 242 people, including 230 passengers and 12 crew members.

The IRDAI expressed its condolences to all the families of the victims of the accident. It also said, "Insurance Sector, as always, given its purpose to support through insurance during such incidents, will remain committed and serve the families of the victims with the quickest possible support through settlement of claims."

Advisory for victims inside the plane

The insurance regulator has advised all insurers to immediately act on the following:

The regulator said that a publicly available passenger list has been released by the relevant authorities. Since it was mandatory for all passengers to take overseas medical insurance for the travel, based on this, the IRDAI has asked insurers to:

• Obtain the authenticated list of the victims of the crash from relevant authorities, including passengers in the plane and persons at the affected buildings of the crash area.

• Verify the details, as available in the respective database of the insurers on issuance of the Overseas Medical Insurance policies, Personal Accident policies and Life Insurance policies and initiate fast-track processes for claim settlement relating to this incident.

The insurance regulator has further asked insurance companies to

• waive off requirements such as FIR or post-mortem reports where official confirmations (confirmation from relevant Authorities) are available.

• claim settlement to the nominee as recorded in the policy.

• ensure that no claim is denied or delayed on account of procedural formalities in the case of confirmed deceased individuals from the passenger list and persons at the affected buildings of the crash area.

Advisory for victims inside at the crash site

For victims at the BJ Medical College hostel and other buildings at the crash area, the IRDAI said, "a dedicated joint cell arranged by both Life Insurance Council and General Insurance Council may be established at the Hospital, where the accident victims are being treated to provide necessary support by disseminating the information to the insurers immediately with respect to claims or any other assistance required for any Health Insurance policies / Life Insurance policies."

The regulator has also asked all insurers to nominate a Nodal Officer at a Senior level for coordinating with the Joint Cell. The insurers are also required to submit a report to the authority starting June 16, 2025 on a weekly basis for a month and subsequently as may be directed by the regulator.