Dana Air has revealed that its MD83 aircraft that crashed in Iju Ishaga Area of Lagos, a few minutes to landing at the Murtala Muhammed Airport, Lagos on June 3 this month has two levels of insurance cover totaling $354.5 million for the aircraft and for the third party liabilities.
“The flight had two levels of cover, US$4.5 million for the value of the plane and US$350 million for third party liabilities. The company has now made direct contact with 103 of the 112 families who lost loved ones in the accident and have also made contact with the six embassies managing communications with the families of those victims from other countries”, said Mr Tony Usidamen, Dana Air’s Head of Corporate Communications in a statement.
The statement was based on allegations that Dana’s insurance cover was not up to date and that it might be unable to pay compensations to families of the victims. Usidamen said the airline is working towards paying compensations to families of air crash victims as soon as insurance documentations from the beneficiaries are completed.
He also gave insight into the airlines insurance cover, disclosing that its lead Underwriter in Nigeria is Prestige Assurance Plc, while its International lead underwriter is Lloyds of London.
On the documentations necessary for payment of compensation, the he said as at the close of business last Friday the airline had received completed insurance forms for 23 of the victims, two of which were for its staff members.
Also on the amount of compensation to be paid, he said Dana Air was working towards meeting the Nigerian Civil Aviation Authority (NCAA) guidelines that stipulated that where possible, initial compensation payments be made within 30 days of the accident taking place.
“NCAA guidelines set the compensation level at US$100,000 per victim. The Company continues to work around the clock with our insurers and the relevant authorities to ensure that the families of the victims are able to process insurance claims.”