The Malaysian Government has officially declared the disappearance of Malaysia Airlines MH370 an accident. But with the plane’s whereabouts still unknown some insurers may still dispute claims, according to a reinsurance lawyer.
The declaration marks an important milestone in that it should allow compensation payments to the relatives of victims, explained Clive O’Connell, partner at law firm Goldberg Segalla.
As an accident, claims can now be made under general aviation coverage. German insurer Allianz is the lead insurer for aviation hull and liability coverage.
“In the future, however, difficulties may arise because of the lack of evidence proving the disappearance of MH370 was an accident. As the plane’s whereabouts are still unknown, there is the potential for the flight’s hull insurers to make a claim against its terrorism or war insurers,” O’Connell said.