A.I.G. Balks at Claims From Jet Ditching in Hudson

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sonoma1993

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May 31, 2004
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A.I.G Balks at Claims from jet crash

Q]For the first couple of days after his flight ditched into the Hudson River, Paul Jorgenson was just glad to be alive. But then he started to need his laptop, his wallet, his car keys -- all the essentials he had stowed under his seat and left behind in the sinking plane.

A pleasant woman at US Airways told him not to worry; he would be made whole for his losses. But then the matter shifted to US Airways' insurer, the American International Group, operating under government stewardship since its bailout last fall.

"Everything went downhill," said Mr. Jorgenson, a software executive in Charlotte, N.C., whose laptop and keys have not been recovered.

When a homeowner has a burglary or a driver has a crash, all it normally takes is a call to the insurance company and a description of the loss to activate the policy. But aviation liability insurance is different. It is activated by a finding of negligence on the part of an airline. If there is no negligence, then arguably there is no liability, and no obligation to pay claims.

That poses a problem for the passengers of US Airways Flight 1549. They suffered real losses and injuries, but they are widely perceived as having been saved from sudden, violent death by their heroic and quick-thinking flight crew, led by Capt. Chesley B. Sullenberger.

"Insurance companies try to protect their assets, obviously," said Bruce D. Chadbourne, a co-author of the book, "Introduction to Aviation Insurance and Risk Management," and a professor in the business school at Embry Riddle Aeronautical University in Daytona Beach, Fla. With the airline wearing a halo, A.I.G. "is going to play hardball."
[/quote]

This is bunch of bs how AIG can deny these people their insurance claims when US Airways jet crashed in the Hudson back in the winter.
 

Painman

Diamond Member
Feb 27, 2000
3,805
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What, you're shocked and outraged that an insurance co. does its job (try to deny liability)?

IOW, maximize shareholder value?

If a Shopping Cart hits your car, your insurance co. will probably chalk it up as a hit-and-run collision claim. I mean, hey, a shopping cart travels on wheels. It's a vehicle! Oh, and BTW, we're raising your premium. You're high risk; you get hit a lot!

You think I'm shitting? I used to work for an auto insurance company. This is EXACTLY what they do. I'm an eyewitness.

Compared to a heath insurance co., I'm quite sure that such antics are mere child's play.
 

Bowfinger

Lifer
Nov 17, 2002
15,776
392
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In all fairness, AIG may be responding correctly here. Insurance isn't a magic bullet that covers every loss no matter how it happens. It is a contract that pays only for certain things and only under specific circumstances. If the AIG insurance policy only covers loss due to airline negligence, they may not be responsible for this accident. It may well be that each passenger's homeowners policy would be responsible for loss of personal property, or perhaps for most passengers there is no insurance obligation at all.

That said, US Airways should be jumping in to immediately pay all loss claims itself, if not because it's the right thing to do for its customers, then at least to avoid a PR disaster. US Airways should fight the battle with AIG or its other insurers privately, out of the media spotlight. My guess is the airline will do this now that AIG is balking. If not, US Airways shareholders should be looking for a more savvy leadership team.
 

0marTheZealot

Golden Member
Apr 5, 2004
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I just hope the government doesn't step in and force AIG to back the claims up. Let this shit be settled in court.

And yes, US Airways should probably front the bill for now and seek restitution from AIG in court.
 

GroundedSailor

Platinum Member
Feb 18, 2001
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Originally posted by: sonoma1993
A.I.G Balks at Claims from jet crash

Q]For the first couple of days after his flight ditched into the Hudson River, Paul Jorgenson was just glad to be alive. But then he started to need his laptop, his wallet, his car keys -- all the essentials he had stowed under his seat and left behind in the sinking plane.

A pleasant woman at US Airways told him not to worry; he would be made whole for his losses. But then the matter shifted to US Airways' insurer, the American International Group, operating under government stewardship since its bailout last fall.

"Everything went downhill," said Mr. Jorgenson, a software executive in Charlotte, N.C., whose laptop and keys have not been recovered.

When a homeowner has a burglary or a driver has a crash, all it normally takes is a call to the insurance company and a description of the loss to activate the policy. But aviation liability insurance is different. It is activated by a finding of negligence on the part of an airline. If there is no negligence, then arguably there is no liability, and no obligation to pay claims.

That poses a problem for the passengers of US Airways Flight 1549. They suffered real losses and injuries, but they are widely perceived as having been saved from sudden, violent death by their heroic and quick-thinking flight crew, led by Capt. Chesley B. Sullenberger.

"Insurance companies try to protect their assets, obviously," said Bruce D. Chadbourne, a co-author of the book, "Introduction to Aviation Insurance and Risk Management," and a professor in the business school at Embry Riddle Aeronautical University in Daytona Beach, Fla. With the airline wearing a halo, A.I.G. "is going to play hardball."


This is bunch of bs how AIG can deny these people their insurance claims when US Airways jet crashed in the Hudson back in the winter.
[/quote]

As an insurance co., AIG's reputation has always been that their business model is based on denying claims.

That is why years ago we decided not get our company insurance through AIG even though they offered a combined policy for all states and at lower premiums. In our field that is a rarity. We have different policies for different states.




 

rudder

Lifer
Nov 9, 2000
19,441
85
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Each passenger received a check for $5000. The whole plane was recovered so I would think if you had an item on board that was more than that you could pursue a claim.

 

JKing106

Platinum Member
Mar 19, 2009
2,193
0
0
Originally posted by: Painman
What, you're shocked and outraged that an insurance co. does its job (try to deny liability)?

IOW, maximize shareholder value?

If a Shopping Cart hits your car, your insurance co. will probably chalk it up as a hit-and-run collision claim. I mean, hey, a shopping cart travels on wheels. It's a vehicle! Oh, and BTW, we're raising your premium. You're high risk; you get hit a lot!

You think I'm shitting? I used to work for an auto insurance company. This is EXACTLY what they do. I'm an eyewitness.

Compared to a heath insurance co., I'm quite sure that such antics are mere child's play.

Why do you hate the Almighty Dollar? Your lack of Faith has been noticed...
 

Patranus

Diamond Member
Apr 15, 2007
9,280
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0
Originally posted by: JKing106
Why do you hate the Almighty Dollar? Your lack of Faith has been noticed...

You can have faith or have *hope* all you want but that doesn't mean that it is going to turn out well, you will only find that more often then not you will be disappointed.

The dollar is totally fracked. No one is buying treasury bonds, countries are trading their treasury bonds for IMF bonds, and when the government is forced to monetize debt the value of the dollar will free fall.
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
They all landed safely and were given $5,000.00. I think that is enough unless they had some expensive items in their luggage or something like that.
 

JKing106

Platinum Member
Mar 19, 2009
2,193
0
0
Originally posted by: Patranus
Originally posted by: JKing106
Why do you hate the Almighty Dollar? Your lack of Faith has been noticed...

You can have faith or have *hope* all you want but that doesn't mean that it is going to turn out well, you will only find that more often then not you will be disappointed.

The dollar is totally fracked. No one is buying treasury bonds, countries are trading their treasury bonds for IMF bonds, and when the government is forced to monetize debt the value of the dollar will free fall.

I was being sarcastic, friend. I'm in total agreement.
 
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