At least RM580,000 payout for each passenger
Published: Mar 27, 2014 8:57 AM | Updated: Mar 28, 2014 2:29 AM
A convention ratified by International Civil Aviation Organisation (ICAO) members guarantees that Malaysia Airlines (MAS) will have to pay about RM580,000 per MH370 passenger.
According to the Montreal Convention, ratified by Malaysia in 2009, airlines are required to pay US$175,800 to passengers without the need for legal claims, upon death on board.
However, the convention which is officially known as the Convention for the Unification of Certain Rules for International Carriage by Air, states that families can still claim for more through legal action.
The convention states that the airline can avoid further claims if it can prove that the death was not due to negligence on its part.
The uncle of Indonesian passenger Firman Chandra Siregar, has initiated legal action in Illinois via law firm Rebbick Law, on the theory that technical fault rendered the pilots and all on board unconscious.
CNBC reported that Integro Insurance Brokers estimates that any claim brought in the US could see damages of at least US$8 million (RM26.34 million), while in China it could be lower at less than US$1 million (RM3.29 million).
MAS has provided financial aid to families during the search period, but said this is not part of any insurance payout.
German daily Handelsblatt reported that insurance payments for the tragedy would total about EUR100 million (about RM450 million).
MAS, which has concluded that no one survived after the plane presumably crashed in the Indian Ocean, is insured with Allianz and Lloyd's.
Insurance companies begin payments
Meanwhile, the families some of the 152 Chinese nationals on board have received insurance payouts totalling several million ringgit, with more to come.
The Chinese newswire said that families of seven passengers received 4.17 million yuan (RM2.21 million) from China's largest insurance company China Life on Tuesday.
China Pacific Insurance Co Ltd has paid out 552,000 yuan (RM292,761) while Sunshine Insurance have paid 500,000 yuan (RM265,108) to a family of three.
China Life reportedly said that 32 of its clients were on board the flight and total compensation is around 9 million yuan (RM4.77 million).
Shanghai-based China Pacific Insurance Co Ltd said it had offered its first compensation payment of 525,000 yuan (RM278,439) as of Wednesday, Xinhua reported
Reuters reported that New China Insurance Co Ltd estimates that it would pay out 1 million yuan (RM530,243) to families of its nine clients on board.
MAS: US petition received
Meanwhile according to Bernama, MAS said today it has received a copy of the petition filed in a court in the United States on behalf of one of the passengers on board the missing MH370 flight against the aircraft manufacturer, Boeing Company, and the national carrier.
MAS said its lawyers have been briefed and are on standby to deal with the case "although it has not yet been formally served."
"We understand that this is not a lawsuit but a request through the courts for information," MAS said in a filing to Bursa Malaysia today.
According to the Montreal Convention, ratified by Malaysia in 2009, airlines are required to pay US$175,800 to passengers without the need for legal claims, upon death on board.
However, the convention which is officially known as the Convention for the Unification of Certain Rules for International Carriage by Air, states that families can still claim for more through legal action.The convention states that the airline can avoid further claims if it can prove that the death was not due to negligence on its part.
The uncle of Indonesian passenger Firman Chandra Siregar, has initiated legal action in Illinois via law firm Rebbick Law, on the theory that technical fault rendered the pilots and all on board unconscious.
CNBC reported that Integro Insurance Brokers estimates that any claim brought in the US could see damages of at least US$8 million (RM26.34 million), while in China it could be lower at less than US$1 million (RM3.29 million).
MAS has provided financial aid to families during the search period, but said this is not part of any insurance payout.
German daily Handelsblatt reported that insurance payments for the tragedy would total about EUR100 million (about RM450 million).
MAS, which has concluded that no one survived after the plane presumably crashed in the Indian Ocean, is insured with Allianz and Lloyd's.
Insurance companies begin payments
Meanwhile, the families some of the 152 Chinese nationals on board have received insurance payouts totalling several million ringgit, with more to come.
The Chinese newswire said that families of seven passengers received 4.17 million yuan (RM2.21 million) from China's largest insurance company China Life on Tuesday.China Pacific Insurance Co Ltd has paid out 552,000 yuan (RM292,761) while Sunshine Insurance have paid 500,000 yuan (RM265,108) to a family of three.
China Life reportedly said that 32 of its clients were on board the flight and total compensation is around 9 million yuan (RM4.77 million).
Shanghai-based China Pacific Insurance Co Ltd said it had offered its first compensation payment of 525,000 yuan (RM278,439) as of Wednesday, Xinhua reported
Reuters reported that New China Insurance Co Ltd estimates that it would pay out 1 million yuan (RM530,243) to families of its nine clients on board.
MAS: US petition received
Meanwhile according to Bernama, MAS said today it has received a copy of the petition filed in a court in the United States on behalf of one of the passengers on board the missing MH370 flight against the aircraft manufacturer, Boeing Company, and the national carrier.
MAS said its lawyers have been briefed and are on standby to deal with the case "although it has not yet been formally served."
"We understand that this is not a lawsuit but a request through the courts for information," MAS said in a filing to Bursa Malaysia today.
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