Families of Ethiopia plane crash victims could get Sh300m
SEE ALSO :All 157 in Ethiopian airliner crash deadFor the bereaved, the plane crash burrowed a deeper hole into their hearts. It is these broken hearts that they will rely upon to pump the vitality of life into every one of their organs for the rest of their lives. But there could also be the loss of money - and that too can be heart-wrenching. Because, such accidents steal away the breadwinners - paper chasers who fly from city to hamlets looking for better deals. It snatches critical risk-takers from economies. Like the young man who, throwing caution to the wind, gathers all his life savings and hops into the next available cheap flight to Addis Ababa, Ethiopia, en route Beijing, China. For hours, he endures the blistering cold at the Bole International Airport waiting for the connecting flight to China. He’d been told that China is the factory of the World, his surest bet to the pinnacle of entrepreneurship.
SEE ALSO :32 Kenyans die in Ethiopian plane crash“I would like to express my sincere sympathy to the families and friends of our dear colleagues who lost their lives today as well as all the families of the other victims. Other than firms losing their humans resources, they are also losing money. After spending hours and billions to research and design Boeing 737 Max 8, the American plane-makers shareholders are left holding on to worthless share certificates. An invention that was supposed to shore up Boeing’s share price by reducing spending on fuel, is now the source of shareholder’s predicament after another 737 Max 8 belonging to Lion Air crashed killing 189 people. Boeing shares fell 5.6 per cent Monday last week before they rebounded by Friday after news that US aviation regulator - Federal Aviation Administration (FAA) - approved the plane maker’s plan to roll out a software upgrade for the model. FAA had joined global aviation regulators in grounding all the 737 Max flights citing links between the Ethiopian and Indonesian crashes. About 344 Boeing 737 Max 8 have been grounded so far, with Kenya Airways mulling cancelling purchases of the model worth about Sh5.7 trillion. Ethiopian Airline also grounded the new models, a move that analysts say is likely to affect the operations of what has so far been Africa’s well-managed airline. The grounding of these flights will most likely affect international trade as the movement of goods and people is curtailed. Money, they say, is not everything. But perhaps it is the only thing that remains as families and friends of the victim plan to rise from the ruins of the latest disaster. Kenya’s Insurance Regulatory Authority (IRA) said that although the compensation will be handled by the Ethiopian authorities, they hope everything will go well. “We trust that the claims will be lodged and settled as per standard practice,” said the head of corporate communications at IRA Noella Mutanda. Compensation of the families of the 157 victims might come from either Boeing Company’s insurers. While insurance payments will be made by Ethiopian Airlines’ insurers, the latter may want to recoup their money from Boeing’s insurers should they prove that the aircraft was faulty, a source told news agency Reuters. If the new model aircraft is found to have been faulty, lawsuits might be brought against Chicago-based planemaker in the US where legal compensation payments for the crash victims could run from Sh200 million to Sh300 million per person, according to Reuters. This is massive compared to about Sh20 million the victims will receive in Ethiopia, according to reports. Chubb, the global provider of insurance products covering property and casualty, was the lead underwriter on the account for the Ethiopian Airlines jet that crashed on 10 March. Willis Towers Watson acted as the insurance broker. Insurers typically form a consortium to share the risks of large claims, with the lead insurer, Chubb in the present case, taking a larger proportion of the risk. The insured value of the plane itself was likely between Sh5 billion and Sh6 billion, according to industry sources.