US-Bangla plane crash

Insurer plans to settle 15 more claims by September

FE Report | Published: September 12, 2018 09:55:06 | Updated: September 15, 2018 12:16:43

Rescue workers work at the wreckage of a US-Bangla airplane after it crashed at the Tribhuvan International Airport in Kathmandu, Nepal on March 12 last — Reuters/File

The families of 15 more victims of the US-Bangla plane crash in Nepal may receive compensation from the insurer by this month.

"We're planning to settle 15 more claims by this month if they would get the court's clearances about their succession," Sena Kalyan Insurance Company Ltd managing director Brig Gen (retd) Shafique Shamim told the FE on Tuesday.

In August, compensation was paid to six victims.

According to sources, the reinsurer initially offered $33,000 but after hectic negotiations, the amount was settled at $50,000 per person.

However, the amount may go up to as much as $200,000 for the victim who is still undergoing treatment in India, sources said.

A US-Bangla aircraft crashed at Tribhuvan International Airport in Kathmandu, Nepal, on March 12 this year, killing 50 out of 71 passengers.

There were 27 Bangladeshi nationals on board, including four cabin crew members.

Sena Kalyan Insurance Company, the key insurer of the aircraft, had reinsured half the amount with Sadharan Bima Corporation.

The remaining half was reinsured with a leading British insurance company, XL Catlin, through insurance broker KM Dastur and Co.

Sadharan Bima also reinsured it with Catlin.

After the accident, Catlin and Lloyd's of London assigned two law adjusters-McLarens Aviation Limited and Holman Fenwick Willan (HFW-for investigation.

They have submitted a report recently determining the amount of compensation for each individual.

The HFW has assigned local law firm FM Associates to settle the payment issue.

But the victims' families missed out on a fair compensation due to non-ratification of the Montreal Convention by the Nepal and Bangladesh governments.

Article 21 of the 1999 Convention says in case of passengers' deaths, an airline is liable to pay up to 100,000 Special Drawing Rights, equivalent to $145,462, to each passenger.


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