The crashes of Flight 370 and Flight 17 are not Malaysia Airlines’ first unusual insurance claims, however. The airline had an unusual claim in 2000 for the total loss of an Airbus A330 traveling in the opposite direction on the same route as Flight 370.
In that case, a canister of a mysterious Chinese shipment destined for Iran broke open near the end of a trip from Beijing to Kuala Lumpur and began leaking, producing a smell that prompted the captain to conduct an emergency evacuation upon landing of all 266 people aboard. A subsequent investigation found that the hold was contaminated beyond cleaning with mercury and other chemicals that may have been precursors for the manufacture of nerve gas.
The Malaysian government ended up digging a large hole in the ground near the airport tarmac and burying the entire plane. Insurers paid a full settlement of $90 million.”—