European airplane insurers dodged a $1.3 billion claims bullet when an Air France jet crash on Tuesday in Toronto caused no fatalities, according to an analysis by the Insurance Information Institute.
I.I.I. said while there could be a $100 million “hull” coverage claim, individual European companies’ liabilities could be limited by a pooled risk system, and if there had been deaths the cost would have been far higher.
Compensation payments to families of crash victims can run from $2.4-to-$4.1 million per passenger, suggesting the total cost could have been between $700 million to nearly $1.3 billion, I.I.I. said.
There were 309 passengers and crew aboard when the Airbus 340 skidded off a runway while landing in a thunderstorm in Toronto at Pearson International Airport. Twenty-four persons were reported injured.
I.I.I. noted that when the 2000 Air France Concorde crash occurred the plane was insured for $30 million