In the recent developments regarding the crash of PK 8303, it has been revealed that the aircraft was insured for $19.7 million. The Airbus A320 with the registration AP-BLD was under hull insurance since it was leased. The full sum of money will go to the leasing company from which Pakistan International Airlines (PIA) had acquired the aircraft.
In aviation, 'hull insurance' provides coverage for the physical damage of an aircraft. The damage can occur on the ground or at the time of flying. However, the malfunctioning part of the plane is not insured. In this case, had the aircraft made a safe landing, all physical damage, but the engines would have been covered under insurance.
How does it help?
National Insurance Company Limited (NICL) is a Pakistani government-owned company that provides insurance to state-owned vehicles. Since Dec 30, 2019, NICL has insured the entire fleet of aircraft owned or operated by PIA. However, insurance is provided to the owner, who is not necessarily the operator of the vehicle.
In the case of PK 8303, the aircraft was owned by the Celestial Aviation Trading 34 Limited, Ireland. The Irish company would hence get the insurance amount, not PIA.
In the unfortunate crash that happened last week, 97 passengers and crew members perished. Only two passengers were lucky enough to escape miraculously. The positive news for the family of the deceased is that NICL has allotted insurance amount for every passenger on board.
The family of each victim will be provided with Rs 1 million (US$ 6119) for making arrangements for the burial. Moreover, the heirs of the victim will be given Rs 5 million (US$ 30595) in insurance after legal formalities are completed.
A PIA spokesperson has said that the processing of claims will be done as quickly as possible. Last time a PIA aircraft crashed in 2016, it took five-six months to process the insurance amount.
Crash probe continues
The investigation into the crash is underway after the black box of the aircraft was recovered yesterday. An 11-member team of experts belonging to Airbus had already arrived in Karachi on May 26. They will be assisting Pakistani investigators in the investigation process and will take the aircraft's flight data recorder and cockpit voice recorder back to France to decode them.
Aircraft Accident and Investigation Board (AAIB) is also present at the site of the crash where the debris and wreckage of the plane are being lifted. The recovered parts will then be shifted to an empty hangar at Karachi airport, where the aircraft will be reassembled for investigation.
Altogether, out of the 97 people killed, only 44 bodies have been identified. DNA matching process is going on at a Karachi University laboratory to identify the remaining bodies. President of Pakistan, Dr. Arif Alvi has said that the crash was a great tragedy that has shocked the entire nation.
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