On June 12, 2025, the nation was shaken by the tragic crash of Air India Flight 171, a Boeing 787-8 Dreamliner that took off from Ahmedabad’s Sardar Vallabhbhai Patel International Airport and crashed shortly after into the BJ Medical College hostel. The flight was en route to London Gatwick, carrying 242 people — 230 passengers and 12 crew members. The incident resulted in a heavy loss of life and severe damage to surrounding buildings.
In response to this heartbreaking tragedy, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a compassionate yet firm advisory to all insurers, reinsurers, the Life Insurance Council, and the General Insurance Council. The advisory underscores the insurance sector’s responsibility to extend immediate and effective support to the victims’ families through expedited claim settlements.
IRDAI expressed deep sorrow over the event, offering its heartfelt condolences to the families of the deceased. The regulatory body has emphasized the need for insurers to act with urgency, empathy, and diligence in assisting the victims’ families during this critical time.
Key Measures Advised by IRDAI
Verification and Claim Processing
A publicly available list of passengers and individuals affected by the crash has been released. Since overseas medical insurance was mandatory for all passengers, insurers are instructed to:
Obtain the authenticated list of victims from the relevant authorities, covering both those onboard and individuals in the affected buildings.
Cross-check insurance details (overseas medical, personal accident, and life insurance policies) from their databases.
Begin fast-track claim settlements without waiting for FIRs or post-mortem reports, provided official confirmations are available.
Nominee-Based Settlements:
Insurers are directed to settle claims strictly in accordance with the nominee information recorded in each policy. No claim should be denied or delayed due to procedural technicalities in cases of confirmed deceased persons.
Joint Insurance Helpdesk at BJ Medical College:
A dedicated joint support cell is to be set up by the Life Insurance Council and General Insurance Council at BJ Medical College Hospital. This cell will assist affected families, providing immediate information and help related to health and life insurance claims.
Nodal Officers for Coordination:
All insurance companies must appoint a senior-level Nodal Officer who will coordinate directly with the joint cell. This officer will be solely responsible for ensuring swift claim settlements and communication on behalf of the insurer.
Reporting and Transparency:
Insurers are to submit weekly progress reports to the authority starting from June 16, 2025. Both insurance councils will publish insurer-wise data on claims settlements on their respective websites to ensure transparency.
A Call for Compassionate Action
IRDAI’s advisory is a crucial reminder that the insurance sector’s primary purpose is to offer support in times of crisis. This tragedy demands a unified, sensitive, and swift response from every stakeholder in the insurance ecosystem. Compassion, responsiveness, and professional excellence are not just expected — they are imperative.