AirAsia cover could be at risk
Insurance coverage for AirAsia’s flight 8501 could be at risk after it was unveiled that the airline was not authorised to fly the route it took on December 28, 2014.
According to industry reports, the airline was approved to fly the route four days a week but this did not include the date of the crash.
However, Clive O’Connell, a partner at Goldberg Segalla said that any discrepancies will depend on the terms of the cover itself.
“Much will depend on the terms of the actual cover given and any exclusions that exist in it,” he said. “Additionally, the outcome will depend on which jurisdiction applies and how the court will interpret the contract. However, it would be absolutely negligent to fly a route where there was no insurance cover.”
The flight took off from Surabaya to Singapore with 162 people on board. The BBC has reported that 37 bodies have been recovered from the sea and officials believe they have located the tail, which holds the ‘black boxes’.
According to Reuters, the incident has remained claimable despite the confusion and insurers have begun processing claims and hope to identify the beneficiaries by the end of January.
