As the search of the Indian Ocean resumed on Wednesday, March 26, 2014, Lloyd's of London says they are preparing for upcoming claims for Malaysia Airlines flight MH370, according to the Associated Press. But, what is the expected price tag for such a catastrophe? CNN is reporting that the total remuneration could range from $400,000 to $10 million per passenger, according to attorneys who have represented families of plane crash victims.
Speculation begins into the costs of the loss of MH370, and Chairman John Nelson of Lloyd's of London tells the Associate Press it is too early to estimate costs. He mentioned that it took between two to three years to determine the cause of Air France flight which crashed in 2009.
CNN reports today that Malaysia Airlines has offered the families of the 239 victims an initial payment of $5,000. It is important to note that this payment is intended to help families make travel arrangements. Families should expect more compensation for their loss, and according to CNN, 'insurance claims and lawsuits will likely be handled separately.'
Further, aviation attorneys told CNN that airlines typically carry 'between $2 billion and $2.5 billion of coverage per plane,' which would allow for approximately '$10 million of insurance behind each passenger.'
Lloyd's Nelson assured the Associated Press, saying: 'We have been insuring airplanes since they were first invented. This is what we do.'