Insurers of Boeing company faces large claims

According to insurance and aviation source, following the recent Ethiopian Airline crash which was the second to involve a Boeing 737 Max 8 model in five months, the insurers of Boeing Company would potentially face large claims.

While the initial insurance payments from the recent crash will be made by Ethiopian Airlines’ insurers, they may look to recoup their money from Boeing’s insurers if they can prove that the aircraft was faulty.

A spokeswoman from Willis Towers Watson confirmed that the firm was the insurance broker for Ethiopian Airlines, while Chubb was the lead insurer.

Britain’s Global Aerospace has also been identified as the lead insurer for Boeing and also for Lion Air, while Marsh is Boeing’s insurance broker.

No financial details of the relevant policies are currently available, although losses from the Ethiopian Airlines crash are speculated to be in the region of $50 million    to $60 million.

However, payouts could be much higher if families of the victims pursue legal claims against Boeing, particularly through U.S courts.

All 157 passengers were killed after Ethiopian Airlines flight ET302 crashed six minutes after take-off from Addis Ababa en route to the Kenyan capital of Nairobi.

While the cause of the Ethiopian Airlines crash is not yet clear, an automated anti-stall system on the newly commissioned Boeing aircraft has come under scrutiny. The system was also identified as a possible cause of the Lion Air crash in Indonesia last October, which similarly involved a Boeing 737 Max 8 plane.