Tuesday, March 31, 2015

$300 million cost for Germanwings crash



Allianz estimated that the insurer would have to pay about $300 million for the crash of Germanwings. Allianz is the lead insurer for Germanwings and has a legal obligation to estimate the cost.

According to Reuters, the initial estimate represents about 20 percent of the $1.5 billion in premiums in the global market for airline insurance. The estimate includes the loss of the aircraft, which is seen at about $6.5 million, the recovery efforts, legal fees and indemnification of the passengers' families.

It tells how huge the amount is. I wonder how the company pursues the liability of the dead co-pilot who caused this crash. In Japan, a employer (company) is responsible for the damage caused by an employee and can pursues the liability to the employee to the reasonable extent.

Though I don’t know till what extent is “reasonable extent”, the left family of the co-pilot has to wave inheritance otherwise they will definitely be bankrupt.

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