Plane Crashes and Emergencies: Key Insurance Covers That Shield You From Aviation Tragedies

When something as devastating as a plane crash happens, it catches everyone off guard. The recent Air India flight crash in Ahmedabad has brought back a difficult question that most people would rather not think about: What kind of financial protection, if any, is possible in the face of such a tragedy?

There is no real way to prepare for the emotional aftermath of something like this. But there are ways to put financial safeguards in place, ones that can, at the very least, ease the practical burdens if things go wrong while you’re travelling. These insurance covers are not new, but they often get overlooked or misunderstood until it’s too late.

Travel Insurance: Not Just About Missed Flights

Says Vivek Chaturvedi, head, health and travel, Digit Insurance, “A common misconception is that travel insurance typically only covers various trip-related exigencies like flight cancellations, missed connections, and lost luggage. However, it also provides crucial coverage for medical and accidental emergencies during international travel; an important component as medical treatments abroad can be expensive.”

Some plans also offer evacuation support, say, if you fall seriously ill abroad and need to be flown back to India via air ambulance. Those services are prohibitively expensive otherwise.

Many insurers provide comprehensive coverage under their international travel insurance plan, which typically includes:

• Medical Treatment and Evacuation Exigencies

• Accidental Treatment and Evacuation Exigencies

• Personal Accident Cover

• Accidental Death and Disability Cover

• Home Buildings and Content Cover

Still, it is worth checking what exactly your policy covers. There is no one-size-fits-all here.

Personal Accident Cover

Unlike travel insurance, a personal accident (PA) cover is not tied to any trip. You could be at home, in your car, at work; it applies across the board. If you are seriously injured in an accident, it can pay for hospitalisation, rehabilitation, and in some cases, even cover lost income if you are unable to work for a while.

In the worst-case scenario, such as death due to an accident, it pays a lump sum to your family. If the accident leaves you with a long-term disability, many PA policies provide compensation based on the severity. The point is: even if you’re not travelling, this kind of cover adds a layer of protection for unpredictable events.

Term Insurance: The Basic, But Vital One

Most financial advisors will tell you this is the first insurance policy any earning member of the family should get. If something happens to you, term insurance ensures your nominee, usually a family member, receives a fixed sum. The premiums are relatively affordable, especially when you buy them young. “It's also highly recommended for those with significant liabilities like loans, mortgages, or credit card bills, as it ensures these financial burdens don't fall solely on your surviving family,” Chaturvedi notes.

If your death happens to be accident-related, like a plane crash, there is usually an option to add an accidental death benefit rider. This means the payout can be even higher than the base sum insured. Similarly, there are riders for permanent disability, which can provide support if you survive but with a life-altering injury.

Home Insurance: For The Extremely Rare, But Not Impossible

This one doesn’t come up often, but it’s still worth knowing. If, due to a freak incident, an aircraft or part of it crashes into your home, damaging your property, a home insurance policy can cover the rebuilding costs. These clauses are usually buried under “impact damage” sections in home insurance documents. “A comprehensive home insurance policy would typically cover the costs up to the sum insured for reinstating your home back to its normal condition, including damage caused by the impact of, or collision caused by, an aircraft,” Chaturvedi notes.

It’s a rare risk, but the coverage exists, and it can save you lakhs if disaster ever strikes in this particular way.

What To Keep In Mind

Chaturvedi pinpoints some key practical things that policyholders (or policy buyers) should keep in mind while thinking of such insurance plans:

• Not all insurance policies are equal. Many cheaper options cut corners, so always check what is included and what’s not.

• Read the fine print. For example, some travel policies don’t cover non-commercial flights or certain high-risk countries.

• Keep your nominees informed. It is surprisingly common for families to not even know a policy exists after someone’s death, which complicates claims.

• Riders (optional add-ons) can be useful, especially if they cover accident-related deaths or disability. They're not just upselling tactics; sometimes they genuinely fill crucial gaps.