Aviation

Boeing facing huge insurance claims from victims of Ethiopian Airlines MAX 8 crash

Aircraft giant Boeing could be hit with massive insurance claims from families of Ethiopian Airlines crash victims, with initial payments potentially being in the millions of dollars.

Reuters reported that initial payments would be made by Ethiopian Airlines’ insurers, but the company may look to recoup their money from Boeing’s insurers if it could prove that the aircraft was faulty.

Initial payments to the passengers’ families are bound by the Warsaw and Montreal conventions, concerning compensation for the victims of air disasters.

Those payouts could be much higher if families pursue legal claims, particularly through US courts, said Clive Garner, head of law firm Irwin Mitchell’s travel litigation group in London.

“If there were to be anything defective in terms of the plane or any of its components, then it would be possible to bring a claim against the manufacturer as well as the airline,” he said.

The insured value of the plane itself was likely around $50 million, according to industry sources.

With the recent news that the US and Canada have joined the rest of the world in boycotting all Boeing 737 MAX 8 aircraft, Boeing faces international legal and financial pressure.

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