Still reeling from the tragedy in March 2014, it is now facing new claims from the devastating crash in Ukraine.
As Malaysia Airlines faces yet another heartbreaking catastrophe as one of its jetliners was shot down in Ukraine, insurance news headlines are now suggesting that this latest disaster could bring about compensation claims that could total hundreds of millions of dollars.
It is also likely that the struggle faced by the carrier will extend beyond the cost of compensation.
It looks as though the crash of flight MH17 will make much more than insurance news when it comes to the financial side of this devastation. Lengthy legal disputes are predicted between Malaysia Airlines and governments, insurers, and the insurance companies providing the aviation coverage. Few believe that this will be a smooth process or one that will be closed at any time, soon.
Insurance news has revealed that there will likely be a number of complications for the airline.
Among the issues that could make things more complex includes the broad spectrum of parties that could be pursued by the families of the victims on the flight. Further problems arise when attempting to prove who actually brought the aircraft down, as it occurred within a conflict zone that is in the heat of contestation. The Malaysia Airlines Flight 17 landed in Donetsk, which is an area of eastern Ukraine that is heavily battle torn, at the moment. It had been on its way from Amsterdam to Kuala Lampur and was carrying 298 people when a ground to air missile struck it.
This profound misfortune occurred only a few months after the same airline’s flight MH370 disappeared, believing to have crashed somewhere over the Southern Indian Ocean without leaving any trace.
In that case, the insurance news was already grim as insurers divided the expenses of the missing plane with the carrier because the actual cause of the aircraft’s disappearance has yet to be known. Now, the families of the victims of MH17 could be compensated by any or several liable parties, which could include governments and/or the Holland and Malaysia aviation authorities, as the flight had been given permission to fly over a recognized war zone. Should evidence be found to point the finger at the Ukrainian or Russian governments in terms of causing the crash, they could also be held liable.
