Dana Airline took a compensation cover of $350m for the passengers, property and aircraft involved in the June 3 crash in Lagos.
Anand Mittal, the Managing Director of Prestige Assurance Plc, the lead underwriter for Dana Airlines, disclosed this in Abuja on Wednesday after a closed-door meeting with officials of the National Insurance Commission (NAICOM).
“I want to assure the families of those who lost their lives that Dana Airline has taken adequate compensation cover for the aircraft, property and the passengers. The total compensation cover is 350 million dollars,” he said.
Mr. Mittal said his organisation is ready to begin payment to dependants of each passenger who died in the plane crash and appealed to them to hasten their documentation in the two Crisis Management Centres in Dana Airline offices in Lagos and Abuja.
He said the insurance contract with the Dana Airline also covers those who lost their lives on ground and the property destroyed as a result of the crash.
He put the “unofficial figures” of those who lost their lives on ground at 13, while 153 passengers died in the plane crash.
Ibrahim Hassan, Deputy Commissioner (Technical) of NAICOM, said the firm was invited to brief the commission on progress made toward payment of the claims.
He said the firm informed the commission that 70 per cent of the payment had been insured abroad while local underwriters took account of 30 per cent.
According to the NAICOM official, seven local underwriters are involved in the business.
“Those who took 70 per cent of this business have appointed a firm of solicitors – Clyde and Company.
“I agree that the law requires that it is mandatory to pay 30 per cent of the claims within 30 days, but payment of 30 per cent cannot be made to just anybody.
“The payment must be made when documentation is in order and I believe they are working on that from the explanation they have given us,” he said.
Last week, the Management of Dana Airlines announced that compensation of $100,000 would be paid to the dependants of each of the victims of the plane crash in accordance with the provisions of the law.
The amount is payable under the Special Drawing Right of Article 17 of the Montreal Convention, which has been domesticated in Nigeria.