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AIG denies liability in Hudson River plane crash


Most of us still remember the dramatic crash landing of US Airways Flight 1549, when Captain Chesley “Sully” Sullenberger piloted a plane bound for Charlotte, NC into the Hudson River after a bird strike disabled its engines. Thanks to the quick thinking of Sullenberger and the flight crew, every passenger was evacuated before the plane sank.


Now, however, insurance giant AIG is citing the flight crew’s heroics as a reason US Airways doesn’t have to compensate the passengers. Aviation liability insurance operates under different rules than regular insurance; it requires a finding of negligence on the part of the airline before any money is paid out. Ironically, the daring rescue of Flight 1549’s passengers- and the public’s fascination with the story- is giving AIG reason to deny liability and keep passengers from recouping their damages.

This is bad news for passengers, given the likelihood of post traumatic stress disorder among survivors of an airplane crash. The New York Times reports that Tess Sosa, a passenger on the plane with her husband and two young children, is struggling to cope with the ordeal, but can’t afford therapy because of her health insurance’s high deductible for mental health care.

AIG- who were bailed out by the government last fall during the financial meltdown- have so far offered each passenger $5,000, while offering $10,000-20,000 to certain other passengers with greater property loss. To get any money, they will have to sign a release of all claims. Airline crash investigations can drag on for months and something proving liability might still be discovered; anyone who accepts the offer would then be left out in the cold.

For the time being, AIG is holding out. As Ms. Sosa puts it, “It’s like telling me, ‘We aren’t responsible for this. This is your trauma. You deal with it.’”


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  1. Frequent flyer says:
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    Boo Hoo-some one must be at fault. How dare an American during the reign of the Obomanator take responsiblity for their own life. The airline is not negligent. Get over it. Passengers should have had their own insurance and quit looking for a free ride in life. Of course, this is not the message of the Obomanator.

  2. Jane Akre says:
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    That is unbelievable – Certainly gives the public relations people a lot of work to try and put a positive spin on the action by AIG.