Multibillion Dollar Battle Over Claims To AIG, Chubb, Lloyd’s Of London

One of the most costly and complex cases to ever be heard by Britain’s High Court will begin as owners of hundreds of aircraft stuck in Russia try to get payouts from their insurance companies.

One litigant refers to it as a “mega trial” over claims insurers such as AIG, Chubb, and Lloyd’s of London have refused to cover for the owners of primarily Boeing and Airbus jets that have been stuck in Russia since the invasion of Ukraine.

Owners of the aircraft, including the world’s largest commercial aircraft lessor, AerCap, seek a combined total of about $3 billion from the insurers, representing potentially the biggest loss in history for the aviation insurance sector. More than 500 aircraft worth an estimated $10 billion were initially stuck. Western lessors have managed to recover some of their aircraft but most remain in Russia and are being flown by Russian airlines.

It is anticipated that several of England’s most prominent commercial barristers will argue on behalf of the insurers that it is too early to declare a total loss, particularly since the aircraft have not been destroyed and may yet be recovered. They will also note that the conflict between Russia and Ukraine may still be resolved depending on the result of the upcoming election in the U.S.

FMI:  www.aercap.com/