On June 12, 2025, India was struck by a devastating aviation tragedy. Air India Flight 171, a Boeing 787-8 Dreamliner en route from Ahmedabad to London Gatwick, crashed shortly after take-off into the BJ Medical College hostel, claiming the lives of 242 people, including 230 passengers and 12 crew members, and causing damage to nearby buildings.
In the wake of this heart-wrenching event, the Insurance Regulatory and Development Authority of India (IRDAI) has acted swiftly to ensure that the families of the victims receive timely and hassle-free insurance support. Through a formal advisory issued to all insurers, reinsurers, and insurance councils, IRDAI has laid out clear and compassionate directives focused on rapid claim settlement and minimal procedural burden on grieving families.
Standing with the Victims: A Unified Insurance Response
IRDAI expressed its deepest condolences to the families of those affected and reiterated the sector’s commitment to stand by citizens in times of such tragedies. The insurance industry has been called upon to fulfill its societal duty not just in form, but in spirit—with empathy, urgency, and accountability.
The advisory urges insurers to take the following key measures:
- Fast-Track Claims Without Bureaucratic Delays
Insurers must:
Obtain the official list of victims—passengers and those in affected buildings—from authorized agencies.
Verify policies under Overseas Medical Insurance, Personal Accident, and Life Insurance.
Waive requirements like FIRs and post-mortem reports where official confirmation is available.
Process claims based on nominations recorded in the policy without delay.
Avoid denial or delay of any claim due to procedural formalities.
This move ensures that grieving families are not further burdened by paperwork at a time of irreparable loss.
- On-Ground Support Through a Joint Coordination Cell
To facilitate direct assistance:
A Joint Cell will be established at the hospital where victims are being treated, jointly managed by the Life Insurance Council and General Insurance Council.
This cell will enable immediate dissemination of information and help in resolving health and life insurance claims or related queries.
- Nodal Officers for Coordination
Every insurance company must:
Appoint a senior-level Nodal Officer responsible for coordinating with the Joint Cell.
Ensure proactive handling and settlement of claims linked to their company.
- Transparent Reporting and Public Disclosure
From 16 June 2025, insurers must submit weekly reports to IRDAI for one month, followed by reports as directed.
Both insurance councils will publish summary data of claim settlements by each insurer on their websites, promoting transparency and accountability.
A Call for Compassion and Action
In this solemn moment, IRDAI’s advisory is more than a directive—it is a call to collective moral responsibility. It reminds the insurance sector that beyond policies and premiums, the industry’s true value lies in its ability to bring financial stability and human empathy to those facing profound loss.
As India mourns the victims of Air India Flight 171, the insurance community must rise not just as regulators and companies—but as pillars of support, helping to bring some relief, however small, to families enduring unimaginable pain.