Malaysia Airlines flight MH17, flying from Amsterdam to Kuala Lumpur, crashed near the Ukraine-Russia border today. As early reports indicate the plane may have been shot down (CBS News reports U.S. intelligence is saying it was brought down by a missile), questions arise over what that means for insurance coverage.
An expert with knowledge of the aviation-insurance industry says if the plane was in fact shot down—and the source stressed information regarding the incident is in the early stages—then the hull loss would be paid by the hull war market. The source said the hull coverage would be on a war-risk policy separate from the standard hull coverage.
The source also said passenger liability associated with the loss, even though it's a war peril, should be insured by the all-risk underwriters, although it would depend how the policies are set up.
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