Air India plane crash: LIC announces relaxations on claim settlements after Ahmedabad incident, says this

BSE and NSE-listed Life Insurance Corporation of India (LIC) on Friday announced relaxations for victims of Air India AI 171 plane crash in Ahmedabad. Expressing its deep grief over the death of on-board passengers and crew members of Air India flight Al 171 and also people on the ground who were killed due to the plane crash in Ahmedabad, LIC of India said it is committed to supporting those affected and will expedite claim settlements to provide financial relief.

LIC shares were trading 0.56 per cent lower at Rs 938 on BSE in a weak market. The BSE Sensex was quoting at 81,078.19, down 613.79 points or 0.75 per cent.

Air India reported a tragic incident involving its flight AI-171 from Ahmedabad to London Gatwick, which crashed shortly after takeoff on June 12, 2025. The Boeing 787-8 plane crash claimed the lives of at least 265 people, including 241 passengers on board. Among those on board, there were 169 Indian nationals, 53 British nationals, seven Portuguese, and one Canadian. 

"LIC of India has announced many concessions to mitigate the hardships of the claimants of LIC Policies. In lieu of death certificates, any evidence in Government Records of death of the policyholder due to the plane crash or any compensation paid by Central/State Government /Airline Authorities will be accepted as proof of death," LIC said in a press release today.

LIC said all efforts will be taken to ensure that the claimants are reached out and claims re settled expeditiously to the affected families. 

In another press release, Bajaj Allianz Life insurance said it has activated special measures to assist families of its policyholders affected by the Ahmedabad crash. The company, has established a special claims settlement desk to prioritise the processing of death and disability claims for its customers impacted due to this tragedy.

"With utmost urgency, an expeditious process has been established to swiftly settle these policy claims," it said.

Prime Minister Narendra Modi reportedly visited the crash site today. Air India MD and CEO Campbell Wilson is currently at the AI-171 plane crash site in Ahmedabad. Wilson said that the airline owes it to the affected families to share "accurate and timely information" rather than speculation.