A Boeing 787 Dreamliner operated by Air India has crashed into a residential neighbourhood in Ahmedabad, western India, shortly after take-off on a scheduled flight to London Gatwick. All 242 people on board - comprising 232 passengers and 10 crew - were subject to emergency response operations, with casualties feared. The aircraft was reportedly insured under a $10 billion aviation cover led by Tata AIG General Insurance Company.
The wide-body aircraft, flight AI171, lost contact with ground control less than a minute after departure, descending rapidly to 625 feet before crashing in Meghani Nagar, a densely inhabited residential district. The crash occurred at 1.08pm local time (9.08am BST), and eyewitnesses described scenes of flaming debris and a plume of black smoke rising high above the neighbourhood skyline.
Faiz Ahmed Kidwai, Director General of the Directorate of Civil Aviation, confirmed the incident and stated that emergency protocols had been activated at the airport. Local police and rescue teams were deployed to the crash site, and hospitals in the area have been placed on high alert.
Air India’s aircraft fleet, including the Dreamliner involved in Thursday’s disaster, is insured under a comprehensive aviation policy led by Tata AIG General Insurance Company Limited. The policy, renewed following Tata Group’s acquisition of the airline, provides approximately $10 billion in hull and liability coverage.
According to industry disclosures, Tata AIG retains approximately 36% of both the premium and risk, while the remainder is shared with domestic co-insurers including GIC Re, United India Insurance, Oriental Insurance, and ICICI Lombard. Indian insurers traditionally retain only 5% of the total risk, with the balance ceded to the global reinsurance market. AIG, the American co-owner of Tata AIG, is believed to be a significant reinsurer on the programme.
The annual premium for the programme is estimated at $30 million, covering the mainline Air India fleet of 140 aircraft and an additional 26 aircraft operated by Air India Express. The policy is expected to be reviewed as the airline begins incorporating 470 new aircraft from Airbus and Boeing into its fleet, in what is slated to be one of the largest aviation procurement deals in history.
With profound sorrow I confirm that Air India Flight 171 operating Ahmedabad London Gatwick was involved in a tragic accident today. Our thoughts and deepest condolences are with the families and loved ones of all those affected by this devastating event.
— Tata Group (@TataCompanies) June 12, 2025
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Air India confirmed that 53 British nationals were among those on board, in addition to 169 Indian nationals, seven Portuguese, and one Canadian. The aircraft was scheduled to land at Gatwick Airport at 6.25pm BST.
Aviation authorities confirmed that the aircraft’s pilot, Captain Sumeet Sabharwal, had logged over 8,200 hours of flight time. Indian broadcasters have reported that a mayday call was transmitted prior to the crash, suggesting that the cockpit crew had identified a critical issue in-flight. Experts have cautioned that determining a causal chain at such an early stage is premature.
India’s civil aviation minister, Kinjarapu Ram Mohan Naidu, stated that he was “shocked and devastated” and had personally instructed aviation and emergency response teams to act in full coordination. He emphasised that the government was on “highest alert.”
Air India’s chairman, Natarajan Chandrasekaran, confirmed the accident in a statement released via the airline’s parent, Tata Group. “With profound sorrow I confirm that Air India Flight 171 operating Ahmedabad-London Gatwick was involved in a tragic accident today,” he wrote. A crisis centre has been established to provide assistance to families.
The crash is the most serious wide-body aviation incident involving a Dreamliner in over a decade and will undoubtedly trigger in-depth scrutiny from global underwriters. While the Boeing 787 remains one of the most trusted long-haul airframes in commercial aviation, the rapid post-take-off descent raises concerns around mechanical, procedural, or runway-based contributing factors.
Aviation market sources suggest that early loss modelling is underway, with the London reinsurance market preparing for potential notifications. If total loss and significant third-party liability are confirmed, the incident could become one of the largest commercial aviation losses in recent years, further pressuring aviation re/insurance pricing, already hardened by geopolitical risk and attritional claims growth.
