THE US Department of Justice (DOJ) says American Insurance Group (AIG), and National Air Cargo’s $45 million claim against the Federal Aviation Administration (FAA) may not progress until next year.
AIG and National are sueing the FAA for $45 million for refusing to pay out $42 million under a non-premium and liability war risk policy. AIG paid National after its Boeing 747-400 crashed at Bagram Airfield, Afghanistan on 29 April 2013. The DOJ’s civil division, which is litigating the case, explains: “There has been no date set for the case to be heard, that is, if the case goes to trial or be submitted to the court on dispositive motions.”
The US Court of Federal Claims has yet to bring the case to a halt, and the DOJ says it will not close until 8 January 2016.
The plaintiffs claim the crash constitutes a “war risk occurrence,” and is covered by insurance. The sum insured was $40 million. The claim for $45 million includes crash site remediation and wreckage recovery.
After the accident, National was paid $42,153,003 by the AIG firm. At the time, National had a multimodal contract with the US Department of Defense (DOD) and was acting as part of the Civil Air Fleet Reserve, providing services for the United States Transportation Command.
Under the DOD contract National was required to get insured through the FAA, and the Commerce & Industry policy was issued on 28 September 2011. The plaintiffs allege the FAA is in breach of its contract by failing and refusing to reimburse them.