India’s Tejas Mk-1 crashes at Dubai Air Show,
Tejas Crash in Dubai Air Show: Tejas fighter aircraft, which is called the pride of India, became the victim of a horrific accident at the Dubai Air Show. The plane which was tearing the sky with its roar till a few moments ago, fell on the ground in the blink of an eye and turned into a ball of fire. This incident has not only shocked defense experts, but has also raised many questions in the mind of the common Indian. The biggest question that is flashing in everyone’s mind is, how big is the economic loss suffered by the country? When a fighter jet crashes, does it get an insurance claim like a car?
How did the accident happen?
According to media reports, Tejas Was demonstrating its excellent manoeuvrability i.e. the ability to perform stunts in the air. Everything was going according to plan, when suddenly the plane lost its balance. The plane went out of control and came down at very high speed. Before anyone could understand anything, there was a huge explosion as soon as it hit the ground. The collision was so tremendous that only smoke and high flames were visible on the spot. The pilot has died in the accident.
How much does a Tejas cost?
From an economic point of view, this is a huge blow to the country’s treasury. Now the question arises that what was the value of the debris which is now scattered on the land of Dubai? To estimate the true value of Tejas, we will have to look at recent defense deals. Just a few months ago, the Government of India had signed an agreement with Hindustan Aeronautics Limited (HAL) for 97 Tejas Mk-1A jets worth about Rs 62,370 crore. The mathematics is simple, if this total amount is divided by the number of aircraft, then the average cost of one Tejas jet comes to around Rs 680 crore.
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However, according to the old data of HAL, the cost of the airframe alone is approximately Rs 309 crore. But a fighter jet is not just a structure of iron and fiber. When the cost of radar, weapon system, software, and ground support system and spare parts required to fly it is added, the price jumps from Rs 309 crore to around Rs 680 crore.
Do these planes also have insurance?
When we meet with an accident in our car or bike, the insurance company compensates for the loss. So will any insurance company compensate for this loss of Rs 680 crore? The answer is no. The world of military aircraft is completely different from ordinary commercial flights. According to reports and defense experts, no external or private insurance policy is taken for indigenous fighter aircraft like Tejas. The reason behind this is the model of ‘Sovereign Risk’ and ‘Self-Insurance’.
The rule says that as long as the aircraft is in HAL’s factory or is on a test flight, its responsibility and insurance remains with HAL. But, as soon as the aircraft is officially handed over to the Indian Air Force (IAF), it becomes the property of the country. The risk of equipment used in national security and combat operations is so high that no ordinary insurance company covers it. Therefore, if the plane crashes after joining the Air Force, the entire financial burden has to be borne by the Government of India. This is called ‘self insurance’, which means that the government itself is the insurer of its property.