08:53 AM, August 09, 2018 / LAST MODIFIED: 09:21 AM, August 09, 2018

Law Event

Accident insurance payment in US-Bangla plane crash

One injured and legal successors of six deceased Bangladeshi passengers received the payment


Only few months back, a seventy-six seat Bombardier plane operated by US-Bangla Airlines crashed in Kathmandu, Nepal with seventy-one passengers on board, including four crew members. Fifty people died and the rest were injured. Of those died, twenty-seven were Bangladeshis (including all four crew members), twenty Nepalese, and one Chinese. As reported in different newspapers, the US-Bangla Airlines had bought insurance coverage of $107 million through two local insurers — Sena Kalyan Insurance and Sadharan Bima Corporation. Of the total amount, $7 million coverage is for aircraft and $100 million for passenger liabilities. Reportedly the State-owned general insurer, Sadharan Bima Corporation has committed to pay an initial US$4.2 million (or BDT346 million) as compensation after collecting the funds from the overseas insurance firms for the ill-fated US-Bangla plane crash victims and their successor family members.

The injured passengers and legal successors of deceased passengers of the US-Bangla plane accident finally received their compensation this week. The cheques for the said payment were handed over on this August 6, 2018 (Monday) to the legal successors of six deceased Bangladeshi passengers, namely Md. Nuruzzaman, S M Mahmudur Rahman, FH Priok, Foysal Ahmed, Prithula Rashid and KHM Shafey. One injured Bangladeshi passenger (Sheikh Rashed Rubayet) of this accident also got the payment of compensation on that day. The event was held at the auditorium of Sena Kalyan Sangstha. The event was conducted by Brig. Gen. (rtd.) Shafique Shamim, psc, Managing Director & CEO of Sena Kalyan Insurance Co. Ltd. The Chairman of Insurance Development Regulatory Authority (IDRA) was also present there and he said that this effort of the US-Bangla Airlines to make this payment without delay should be appreciated. In his experience, he found that the insurance company of the US-Bangla is making the payment at the earliest possible time. The insurance and aviation law expert, Barrister Al Amin Rahman, who is an Advocate of Bangladesh Supreme Court and partner of the law firm, FM Associates, said that the compensation payment has been fixed following the international aviation treaties and convention and as per the laws of Bangladesh. Participants included other high-ranking personnel from IDRA, Bangladesh Insurance Academy, etc.

Following the accident, the families of Bangladeshi victims were directed by the US-Bangla Airlines to contact their aviation and insurance law expert in Bangladesh, Barrister Al Amin Rahman. His law firm, FM Associates, was appointed for dealing with the compensation claims of the victims of the US-Bangla plane crash. They were responsible for liaising with the affected families and all other concerned authorities and also for accomplishment of numerous succession suits for the successors of the deceased victims of this accident. These succession cases were done in different districts of Bangladesh. Mr. Al Amin Rahman and his team finally assisted in disbursement of the insured payments to the family members of the victims on that day at the event. Another law firm in Nepal was also appointed to assist in the payment disbursement process.  Premier Bank Limited, Bangladesh was the banking partner of the US-Bangla Airlines for the payment of the insured amount and supported in payment of approximately half a million dollars to the family members of the victims.