State-owned general insurer Sadharan Bima Corporation will pay an initial US$4.2 million or BDT346 million in compensation for the ill-fated US-Bangla plane that crashed in Nepal on 12 March.
“We’ll pay the compensation to the US-Bangla Airlines after collecting the funds from overseas insurance firms,” said Sadharan Bima Managing Director Syed Shahriyar Ahsan. He said that more compensation will be paid in phases, reported bdnews24.com.
The 76-seat Bombardier plane operated by US-Bangla Airlines crashed in Kathmandu with 71 passengers on board, including four crew members. Fifty people were killed and the rest were injured. Of those killed, 27 were Bangladeshis (including all four crew members), 22 Nepalese and one Chinese.
US-Bangla Airlines bought insurance coverage of $107 million through two local insurers— Sena Kalyan Insurance and Sadharan Bima Corporation. Of the total amount, $7 million coverage is for aircraft and $100 million for passenger liabilities, reported The Daily Star.
Of the liability portion, about 1% is shared between Sena Kalyan and Sadharan Bima while the rest are reinsured with foreign insurance companies.
The foreign insurers include Halifax, a subsidiary of global insurance giant Lloyds, and General Insurance Corporation of India, said Mr Shafique.
Meanwhile, Sadharan Bima has already received an assessment report on the destroyed aircraft from surveyors. The report recommends paying the airline the full coverage of $7 million, said Mr Shibli.
“We will hand over the compensation for the aircraft to the company soon,” he added.
Families of the victims of US-Bangla plane crash are each entitled to receive up to BDT16 million (US$193,600) in compensation from the airline and its insurers under international aviation laws.
In case of such accidents, international carriers abide by two conventions — Warsaw Convention and Montreal Convention. Both Bangladesh and Nepal are signatories of the Warsaw Convention only.
US-Bangla Airlines took insurance coverage of up to about BDT16 million for each passenger and $50,000 for each crew member.
Families of those who died are likely to get the maximum amount, said Mr Shibli Rubayat Ul Islam, Chairman of Sadharan Bima Corporation, another insurer of US-Bangla Airlines.
The compensation for those injured will be determined during the damage assessment and the maximum amount for them is BDT3.8 million, officials said.