Negotiations between Malaysia Airlines' insurers and family members of missing flight 370 passengers could result in insurance payouts from $400,000 to $10 million per passenger, according to CNNMoney.
According to the article, Malaysia Airlines has offered an initial payment of $5,000 per passenger. This initial payment is assistance to handle immediate expenses like travel and lodging. Insurance claims and lawsuits will be handled separately, and insurers will have to take many factors into account when calculating the claims, says CNNMoney.
“They're going to look at the earning potential of that deceased individual and the fact that he's got a wife and young kids that are going to need to be provided for for a long time,” Bradley Meinhardt, a managing director at risk management services firm Arthur J. Gallagher & Co. tells CNNMoney. “A single individual is going to be calculated differently,” based on age, the victim's country of residence, and a variety of other factors.
The first claims involving passengers could be paid out in the coming weeks and months, says CNNMoney.
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