Dana airplane crash site
If the rumours making the rounds in the insurance industry is anything to go by, then families who lost their loved ones in the ill-fated Dana aircraft on June 3, 2012, may have to wait longer than necessary to get full compensation in line with the promise made by the representative of Lloyds of London, underwriter of the aviation risk.
A top industry source who would not like his name in print alleged that the airline may not have met its premium obligation to the local underwriters on the airline’s insurance account before the accident.
Under the contract of insurance, the customers is expected to pay the require premium (money) to the insurance company so that the insurer can pay compensation to the policyholder whenever there is a mishap.
The source confirmed that the group of local underwriters on the account took on 30 per cent of the risk while foreign operators at Lloyds absorbed 70 per cent of the risk. Seventy per cent of the premium payable was remitted to the foreign insurers, the local insurers were yet to get their share of the premium.
The source also stated that apart from Dana Airlines, many other airlines operating in the country were also guilty of non-payment of required premium to insurers, believing that there would not be any accident before the year runs out.