World | Philippines
Philippine plane crash victims' heirs get record payout
Insurance companies have agreed to pay 7.5 billion pesos (Dh621 million) to 21 out of 110 heirs of the passengers of the Air Philippines flight that crashed on Samal Island in the south in 2000, a local paper said.
- By Barbara Mae Dacanay, Bureau Chief
- Published: 23:16 July 18, 2008
Manila: Insurance companies have agreed to pay 7.5 billion pesos (Dh621 million) to 21 out of 110 heirs of the passengers of the Air Philippines flight that crashed on Samal Island in the south in 2000, a local paper said.
Lawyers who negotiated for the foreign firm that leased the ill-fated aircraft to Air Philippines agreed on the settlement ahead of a scheduled trial in the US this September, Robert Coyiuto Jr, Chairman and Chief Executive Officer of Prudential Guarantee & Assurance Inc, told the Manila Times.
"The amicable settlement closed this issue," said Coyiuto. Prudential Guarantee had insured Air Philippines. The settlement was reached because of the strength of the case, said Coyiuto.
The heirs claimed that the Chicago-based AAR Aircraft & Engine Group and Fleet Business Credit Corporation, which leased the ill-fated Boeing plane to Air Philippines, had defective parts.
It could be the biggest aviation insurance payout in the Philippines, or in Asia, Manila Times said.
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