AIG Dodges Insurance Claims from Hudson Flight

Insurer accused of using goodwill towards flight crew to dodge paying up
By Rob Quinn,  Newser Staff
Posted Jun 12, 2009 1:22 AM CDT
AIG Dodges Insurance Claims from Hudson Flight
Passengers wait to be rescued on the wings of US Airways Flight 1549. Some passengers injured in the crash or traumatized by the experience have found AIG unwilling to pay out on insurance claims.   (AP Photo/Steven Day)

(Newser) – Passengers from US Airways Flight 1549 are having a tough time getting its insurer, AIG, to cough up for claims, the New York Times reports. Aviation liability insurance requires a finding of negligence. But Capt. Chesley Sullenberger and his crew were universally acknowledged to have performed amazingly well in saving all passengers, and the insurer is using that to dodge payments to those who suffered losses or injuries.

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Each passenger received a check for $5,000 after the crash, but some lost expensive electronic equipment worth much more than that. Others still traumatized by the crash have found that AIG is willing to pay for just three therapy sessions. "I wish I had a hammer to get them to do the right thing," said an aviation lawyer acting for some of the passengers.  "They’re riding a wave of feel-good opinion about how well the flight crew handled the bird strike." (Read more Flight 1549 stories.)

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