Initial Sum Of $54,000 To Be Paid To Relatives Of Passengers On Flight 9525

Lufthansa has sequestered some $300 million it says will cover "all costs arising in connections" with the crash of Germanwings Flight 9525. A Lufthansa spokesperson said that the majority will be distributed to relatives of the passengers fatally injured when the plane impacted terrain in the French Alps.

Lufthansa had said previously that an initial sum of $54,000 would be paid to the relatives of the passengers on the flight "to address immediate financial needs." The Wall Street Journal reports that the airline has said that the initial payment would not affect future claims made by the families.

Lufthansa's insurers said that the $300 million amount is based on initial, preliminary assessments, and will be adjusted as more information is made available. It also covers the cost of the Airbus A320, estimated at about $6.5 million.

In a statement, the 10-member consortium of insurers said that the airline and its aviation insurers, led by Allianz Global Corporate & Specialty, "can confirm that all claims arising from the loss of Germanwings flight 4U9525 will be addressed fully, fairly and as quickly as possible, in close consultation with the next of kin of the passengers and their representatives.” But the consortium also cautioned that it will take "some time" before an accurate assessment of final amounts is determined.

The paper reports that in similar European cases, families have received about $1 million per person fatally injured. U.S. compensation is often substantially higher, according to the report.

FMI: www.agcs.allianz.com