Washington D.C. Train Crash Leads to Record Claims
The Washington D.C. Metro crash that took place in June (the region’s deadliest on record) that killed 9 people and injured 76 others will cost the insurance company American International Group Inc., insurers at Lloyd’s of London and several other companies at least $100 million in claims. The exact dollar amount is not known yet since it hinges on a few factors like expected lifetime earnings of victims and how negligent the Washington Metropolitan Area Transit Authority was.
This high cost will most likely prompt insurers to raise their rates on coverage to other entities that they insure, like the aviation industry. A Manager for a New York based insurer said, “Underwriting criteria will get more strict. And this in turn may prompt the transit agencies to buy new safer equipment.” Washington D.C. officials have ordered an “urgent” review of the Metro rail system in order to ensure that a repeat of the incident does not occur.
Operating several thousand tons of moving train cars requires the utmost concentration and diligence. Yet all too often, operator negligence is found to be the root cause of a train accident. Although much is made of the operator’s responsibility for the safety of passengers and the general public, a large team of professionals are also involved in keeping a train running safely. Investigators are continuing their investigation as to the exact cause of this tragic train accident.
Continue reading " Washington D.C. Train Crash Leads to Record Claims " »