The collision between an American Airlines passenger plane and a US Army Black Hawk helicopter is expected to impact global aviation insurance.
Aviation insurance expert Arman Juffry believes that the large claims arising from this incident could lead to an increase in future insurance premiums.
According to Arman, under aviation insurance schemes, claims for this accident will proceed as usual. However, if government involvement is discovered during the investigation, claims could be processed under special schemes in the US, such as the US Victim of State Terrorism (VSST) Fund or the Victims Compensation Fund (VCF).
“What could make the claims significantly larger is if the investigation finds government involvement. In that case, claims may be processed via the US VSST or VCF, which are funds allocated by the US government for victims in cases involving state involvement,” Arman told Bisnis on Sunday (February 2, 2025).
He also explained that compensation claims for aviation accidents in the US tend to be larger than in other countries. This is due to several factors, including:
- The age of the victims and their expected lifespan if they had survived
- The number of dependents in their families
- Other economic factors
In aviation insurance, the strict liability principle applies, meaning claims must be paid without disputing fault in the incident. Additionally, victims or their families can file a class-action lawsuit through their attorneys to seek higher compensation.
Impact on Aviation Insurance Premiums
Arman further noted that this surge in claims could drive up global aviation insurance premiums.
He pointed out that in recent years, large aviation insurance claims have been relatively rare. The last major incidents were:
- Lion Air Flight 610 (2018)
- Ethiopian Airlines Flight 302 (2018)
Both crashes resulted in over 500 deaths.
“Since then, there haven’t been many claims until 2023. But after that, we saw accidents involving Azerbaijan Airlines, Jeju Air, American Airlines, and others, which collectively claimed nearly 300 lives. I believe this will influence a rise in aviation insurance premiums,” Arman said.
FAA Reports on Recent Learjet 55 Crash
The Federal Aviation Administration (FAA) reported that the most recent plane crash involved a Learjet 55, which took off from Northeast Philadelphia Airport around 6:30 PM local time before crashing less than 6.4 km from departure.
The flight was headed to Springfield-Branson National Airport in Missouri. Initially, the FAA stated there were only two people on board, but later revised the number to six.
Crash Site and Witness Accounts
The crash occurred just a few blocks away from Roosevelt Mall, a three-story shopping center in a densely populated area of Philadelphia. The site is surrounded by rows of houses and shops.
Videos circulating on social media show the plane descending rapidly, followed by a large fireball explosion.
Eyewitness reports indicate that:
- Debris struck vehicles
- Burning wreckage scattered across the streets
- Photos show charred and severely damaged cars
A CBS interviewee described hearing a loud rumble while driving in the area, followed by an explosion. Emergency teams immediately responded as residents gathered near the scene.
Previous Mid-Air Collision with Black Hawk Helicopter
Notably, this crash occurred just two days after a major collision between a commercial aircraft and a Black Hawk helicopter in Washington, D.C., which reportedly killed all 67 people on board both aircraft.
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