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MISSING MH370: MAS adequately covered by insurance
Publication Date : 19-03-2014
The cost of the search and rescue operation, as well as insurance matters related to the missing aircraft, are being handled by insurance brokers appointed by Malaysia Airlines (MAS).
The insurance companies will also pay for the accommodation of family members of the missing persons.
Even if the incident was the result of a terrorist attack, which is mere speculation at this point, MAS is adequately covered for all eventualities, said a source close to the matter.
US-based Willis Group Holdings is the insurance broker and the insurers comprise reputable companies in the aviation market, including Lloyd’s.
The brokers and insurers have been working with MAS on every aspect of the cost issues since the aircraft went missing on March 8.
One factor that experts around the world warned about is that the search operation would be “costly and complicated”.
It is the norm for airlines to insure their aircraft and the insurers will make sure the airlines keep the planes in good working condition.
MAS has a stringent aircraft maintenance and service policy.