Aktau: Russia’s Alfa Insurance company has completed the aviation casco insurance payment following the crash of an Embraer aircraft operated by Azerbaijan Airlines (AZAL) near Aktau, Kazakhstan. Ilya Kabachnik, the Deputy General Director for Aviation and Space Insurance at Alfa Insurance, confirmed this development in an interview with Interfax, APA-Economics. The company has also initiated payments for damages to passengers affected by the tragic incident.

According to Azeri-Press News Agency, the Embraer 190 aircraft and AZAL’s liability to passengers were insured by Alfa Insurance. Kabachnik disclosed that a significant portion of the risk was reinsured by the Russian National Reinsurance Company (RNPK), and the full insurance payment for the aircraft was executed in February. Although the investigation into the crash continues, the insurer proceeded with the payments based on the undeniable destruction of the aircraft. Kabachnik emphasized that the insurance covered war and terrorism risks, ensuring that the airline would receive the payment regardless of the investigation’s outcome.

Efforts to calculate damages and make payments to victims and their legal representatives began in January and are still underway. The passenger transport process for AZAL’s Baku-Grozny flight adheres to the 1999 Montreal Convention, which both Azerbaijan and Russia have ratified. The insurance contract covers risks for flights to Russia, and payments align with Russia’s Federal Law No. 67-FZ on mandatory carrier liability, stipulating a payment amount of 2 million rubles for life and health damages.

Kabachnik addressed potential third-party damage claims, stating that no such claims have been raised, but the company is prepared to handle them in collaboration with AZAL if they arise. The crash occurred on December 25, 2024, during a diverted landing attempt at Aktau, resulting in the loss of 38 lives out of the 67 passengers on board. Preliminary reports by Kazakhstan’s Ministry of Transport indicated damage from “external objects” before the crash, but the investigation is ongoing, with a final report expected by December 2025.