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Insurers unlikely to take hit on grounding of B737 MAX 8 planes, say industry officials

Press Trust of India  |  New Delhi 

The grounding of 737 MAX 8 planes is unlikely to have any impact on domestic general insurers that have provided to such aircraft, according to officials.

As many as 12 MAX 8 planes of have been grounded amid safety concerns in the wake of a plane crash in on Sunday that killed 157 people.

A top of a company said there would be no impact on insurers due to the grounding of the 737 MAX 8 planes.

companies already get their premium in advance and liabilities are paid when there is some damage or accident during an operation, an of a private sector non-life insurer said.

The probability of any claims are less when planes are grounded as a result of which there would be no financial implication, the added.

Only and operate 737 MAX 8 in the country. However, crisis-hit has not been operating its five such planes due to non-payment of dues to lessors.

On Tuesday, the of Civil (DGCA) decided to ground 737 MAX 8

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 13 2019. 21:16 IST