Thursday, 6 September 2012

DANA Plane Crash: NCAA Explains Delay in Compensation Payment

 

Dr Harold Demuren, the Director General, Nigerian Civil Aviation Authority (NCAA), who made this known at a joint press briefing in his office on Wednesday, said other challenges included multiple claims by some families, delay in release of DNA results and submission of incorrect documents by some families.

Demuren's explanations came just as the Minister of Aviation, Princess Stella Oduah, granted Dana Airline the right to resume flight operations.

The NCAA boss said the aircraft and the passengers on board were insured for 350 million U.S. dollars. He said that only 62 families had received compensations, adding that more than 20 foreign families whose relations died in the crash had instituted court cases in the U.S. the UK against the airline.  

According to him, the challenges have slowed down payment of the initial 30,000.00 dollars to some of the bereaved families that lost their bread winners in the June 3 crash at Iju Isaga in Lagos State.

``We do not want the families of the deceased to undergo  more trauma and agony hence NCAA has invited  representatives of  Dana , Lloyds (its international insurer ), its local underwriter  and NICON  to discuss ways of overcoming perceived challenges and fast tracking the initial payment,’’ he said.

Also speaking, Mr Ibraheem Hassan, the Deputy Commissioner, Technical, National Insurance Corporation of Nigeria (NICON), said care was being taken to avoid paying compensation to wrong claimants.

``If we pay the wrong claimant, there will be no money to be paid twice when the genuine claimant appears. We have to be very sure of the identity of the person we are paying the money to.

``That is why we are asking for letters of administration from the probate court certifying that the claimants are the deceased’s  families or next-of-kin,’’ he explained. 

Hassan pointed out that the airline was insured in Nigeria and abroad, adding that 30 per cent of the airline’s risks fund was domiciled with Prestige Insurance, the lead underwriter of Dana in Nigeria.

``The insurance company has been paying as nobody that has filed a claim for the initial 30,000.dollars has been denied payment,’’ he said.

He gave the assurance that the procedure for the payment of the remaining 70 percent would start as soon as the initial payment is completed.

According to him, the process demands that there must be a letter of administration certified by the court before establishing the next of kin of the deceased.

Hassan said the 350 million dollars did not cover those who lost their lives and properties on ground that were damaged.

Meanwhile, management of Dana airline on Thursday expressed satisfaction at the Federal Government’s restoration of its operations.

Mr Jackie Hathiramani, the airline’s Chief Executive Officer and Director of Operations, told newsmen that the airline would soon resume operations.

The Federal Government on Wednesday announced the lifting of suspension on the airline’s operations.

It said that the airline could resume flight operations anytime.

The government suspended the operations following the crash of the airline’s MD-83 aircraft at Iju-Isaga, Lagos on June 3.

Also speaking, a retired captain in the Nigerian Air Force, John Ojikutu, hailed the development.

He said that the government ought not to have suspended the airline’s operations. 

``What the government should have done was to withdraw the aircraft type.

``The relevant aviation agencies such as the Accident Investigation Bureau (AIB) should have been directed to carry out checks on the withdrawn aircraft to ascertain their level of airworthiness,’’ he said’

The airline should have been allowed to continue to operate other types of aircraft on its fleet,’’ he said.

Ojikutu advised the government to make public, the findings of the AIB on the crash.

Also, Capt. Dele Ore, a retired pilot of the defunct Nigeria Airways Ltd., congratulated Nigeria and the management of Dana airline on the development.

He, however, said that the suspension of the airlines’ operations and lifting of the suspension was the duty of the Nigeria Civil Aviation Authority (NCAA). 

``This is the international practice as NCAA would have come up with facts to justify its actions,’’ he said.

Ore, Chairman of the Aviation Round Table, a non-governmental organisation, advised the airline to organise itself properly before resuming operations.

He advised that the airline should organise a refresher and post accident trauma training for its pilots, engineers and other workers.

Dr Steve Mahonwu, Chairman, Airlines Operators of Nigeria, also commended the lifting of the suspension.

``This is a clear departure from the tradition when airlines that suffered crashes would have to be in the cooler for between 10 years and 15 years.

 

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