Bhoja crash: Passengers were under $5m cover by Russian insurer

Published: April 23, 2012

Officials on Saturday promised a full investigation into the crash of the Bhoja Air flight that killed 127 people. PHOTO: REUTERS

KARACHI: 

The Federal Investigation Agency (FIA) has submitted its initial report to the government about the Bhoja Air crash in which all the 127 people onboard the aircraft had perished on Friday.

Sources revealed that the report gives details of the shareholders, financial status and crucial details about the aircraft carrier itself.

All the passengers of Bhoja Air flight B213 and their luggage were third-party insured in Russia covering $5 million. The plane was owned by Jet Aviation Sharjah and it was registered in South Africa and had completed 46,933 flying hours.

Sources revealed that Bhoja Air had acquired it for $20,000 on a rental basis and it arrived in Pakistan on January 26 this year after the administration had completed the import formalities.

According to sources, the report, compiled under the supervision of FIA Director Moazzam Jah Ansari and Corporate Crime Circle Deputy Director Altaf Hussain, includes the information received from chairman of the airline Farooq Bhoja.

The registration number of the Boeing 737-200 was AP-BKC, its serial number was 23167 and its model was from the year 1985. The civil aviation authority of South Africa had given it clearance before it flew to Pakistan. The engineers of the Civil Aviation Authority (CAA) Pakistan had also given a clear report when they examined it in South Africa, according to sources.

Bhoja purchased its insurance from Reliance Insurance. It also purchased a third-party insurance of its passengers and the luggage through Reliance Insurance from Imgosstrakh Insurance Company of Moscow.

Published in The Express Tribune, April 23rd, 2012.

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Reader Comments (29)

  • T Khan
    Apr 23, 2012 - 9:39AM

    Does seem like Mr Bhoja was running his airline cleanly…
    at least proper routine procedures were being followed and proper insurances taken…a rarity in our country.

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  • The Truth
    Apr 23, 2012 - 9:59AM

    How is this information in anyway relevant to the common reader. As if I am going to read this and say “Oh! serial number 23167!!, I remember that plane” Come on ET if its not news worthy don’t waste your time and ours.

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  • Mirza Zulfiqar Baig
    Apr 23, 2012 - 10:12AM

    It means more than 35 Lakh Rupees should be given to each victom’s family through this premium. Will it be done?

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  • maiden
    Apr 23, 2012 - 10:13AM

    So what does all this mean. People have died and that cannot be changed.Recommend

  • Mard-e-Haq
    Apr 23, 2012 - 10:21AM

    Isn’t Reliance Insurance part of the Indian Ambani-run Reliance behemoth?

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  • Apr 23, 2012 - 10:29AM

    This means all money would go to the directors and the airline and peanuts for the victim’s families.

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  • Chilli
    Apr 23, 2012 - 10:31AM

    Why we always see the darker side. Bhoja mishap could been an act of nature, which require proper investigation. Stopping airlines from work even if they are following proper rules is not fair and will give wrong signals to foreign investors.

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  • Apr 23, 2012 - 11:08AM

    Bhoja Air has an aircraft carrier?

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  • Ammad Ahmed Khan
    Apr 23, 2012 - 11:25AM

    First they have to look into these technicalities i.e. Flying hour more 47000 & its usage age is more than 27 years looks like they are using flying coffins.

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  • Mj
    Apr 23, 2012 - 12:45PM

    That translates to about 3,500,000Rs per passenger. Shamefully low coverage.

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  • Apr 23, 2012 - 12:48PM

    Former PIA Boss Arshad Jalil & family owns 70% shares in Bhoja Airline Pakistan. The very same family is owner of JET AVIATION (a free zone company) 18, NE-3, SAIF Zone, Sharjah – UAE No wonder Mr. Arshad Jalil played vttal role in collapse of PIA.

    Matter of fact remains the aircraft was flying in bad weather struck by thunder lightening erupted into flames before landing on ground.

    My salutes to former PAF pilot The captain of aircraft who managed to divert the aircraft away from population and crashed without human casualty on ground

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  • aheartoflion
    Apr 23, 2012 - 12:51PM

    I think the ill fated airplane came down due to human error of judgment. As far I can see this the pilot should havent landed in such weather or the air control should have told the pilot that it isnt feasible to land the plane. Most of the crashes occur due to human error.

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  • Animal Planet
    Apr 23, 2012 - 1:11PM

    @exactly Ammad… Mr Bhoja shouldnt have started an airline if he doesnt have the capital to buy other than “flying coffins”… buying antiques and bribing the govt to get clearance is not the way.

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  • Apr 23, 2012 - 1:19PM

    For all you uber smart people… i would like to tell u that 27 years is the age that Airforce one will begin phase out. That too is a Boeing, only its not a 737 but a 747. To read a bit about it, http://ovaisjafar.wordpress.com

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  • Suleman
    Apr 23, 2012 - 1:19PM

    @ Mirza sb.
    I strongly agree with Mirza sb. He is very right in saying so that the insurance amount must be given to affectees.

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  • Omar
    Apr 23, 2012 - 1:20PM

    @The Truth: I suppose this information is provided for transparency’s sake. For example, families and friends of the deceased who are seeking compensation from the airline can read up on the aircraft’s history at websites such as http://www.airframes.org/ by entering the registration number. The information may not be of interest to every reader, but I believe it does add some value particularly when allegations are being raised about the airworthiness of the crashed airliner.

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  • huzaifa
    Apr 23, 2012 - 2:33PM

    @The Truth:
    Dear, this is called investigative journalism, It shows the people that the person putting up the story has thoroughly done his job.

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  • Blithe
    Apr 23, 2012 - 2:51PM

    USD 20,000 and then rentals!!!?!?!

    USD 20,000 only , is that all the upfront capital
    required to get a plane???

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  • Hasan Zuberi
    Apr 23, 2012 - 3:08PM

    A coomercial aircarft like this should not have a life exceeding 30000 Hours. This was purchased after 46000.

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  • Arman
    Apr 23, 2012 - 4:30PM

    @ Hassan zubari:
    agreed & my point is that it wasn’t a supportive aircraft but a fully commerical fleet. But the plane life was 6 years at the time of taken over by Bhoja.

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  • khalid
    Apr 23, 2012 - 5:18PM

    what is the guarantee that third party insurer in Moscow will pay the dues as per request . Whether that insurance company is recognized in aviation world.

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  • ali haider
    Apr 23, 2012 - 5:29PM

    So sad…very shame less incident for CAA.

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  • MS
    Apr 23, 2012 - 6:33PM

    Any guesses on who is the kingpin in Russian insurance scene?? one guess.

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  • Acorn Guts
    Apr 23, 2012 - 7:10PM

    I don’t know but talking about monetary compensation in lieu of human lives just don’t go down well with me. May Allah protect us all but if something like that happened to my loved ones, I wouldn’t even consider the word ‘compensation’ .. I mean how do you compensate human lives?

    Having said that, I do understand this tragedy has taken away bread earners of several families so a thought needs to be given to their maintenance, in which case 3,500,000 is nothing but shameful! I say sell one of Bhoja flying coffin and dish the returns out to the families of deceased. Win win.

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  • Meekal Ahmed
    Apr 23, 2012 - 10:52PM

    @Captain Sathish:

    How do you know all this? You even know that the dead captain steered the plane away from population centers? Wow!

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  • Rasfa
    Apr 24, 2012 - 12:55AM

    Third Party insurance (liability) relates to the damage caused to the property or human livers on ground by the fallen aircraft. Passenger liability is a different thing altogether. At present its rate is Rs 500,000/= per pax. for domestic flight, as per ‘Carriage by Air Act 2012′ signed by the President of Pakistan in Feb 2012. Compensation rate on international flight is different which is about $US150,000 per passenger as per Montreal Convention 1999. The Operator (Bhoja Airline) is liable to pay compensation @ Rs 500,000 per passenger to the next of kins of the passenger, who lost their lives in this accident, Bhoja Air will not be able to escape this liability in any case. Fake insurance is not a problem for the passenger, but for the airline because which will have to settle the claims. If it has proper insurance, like Airblue had, then it will have no issues arranging compensation. However, succession certificate issued by a court is a mandatory condition for the release of amount to the next of kin. The delay in the issuance of succession certificates could be caused by courts in some complicated cases where of next of kin can not be easily determined. Airblue still has not been able to settle some cases of compensation for the want of succession certificate.

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  • A. Khan
    Apr 24, 2012 - 5:26AM

    Some clarification is required on cost of aircraft. This aircraft was on dry lease from its owner at a rate of $20,000 per month. Dry lease means that operator i.e. Bhoja Air have their own pilots and are responsible for fuel etc.

    Wording of article implies that aircraft was bought for that amount, which is incorrect.

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  • Z. Jafri
    Apr 24, 2012 - 11:11AM

    @Captain Sathish:
    Agree with you, Capt Noor did his best to avert larger-scale disaster. if you see site of crash the ground has marks of tires indicating pilot tried to land plane however due to terrain and visibility issues the plane rebounded and collapsed forward.

    Mr. Jalil has successfully run Aero Asia and Shaheen Air in the past without any major incident, I dont think he had any senior position when in PIA to affect national carrier’s performance.

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  • Rasfa
    Apr 24, 2012 - 10:43PM

    Some clarrification on the amount of passenger liability. Passenge liability is Rs 5,000,000 as per national law. Bhoja had insured US$ 60,000 per passenger.

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