Hudson crash survivors not receiving insurance

The New York Times has an interesting article on insurance issues facing the Hudson crash survivors. AIG, the airline's insurer, is refusing to pay the passengers' claims for medical expenses and lost property.

Although the article pulls on the heartstrings, from an insurance standpoint it makes sense that a liability insurer would not pay in the absence of negligence by the insured airline. The passengers claim that AIG is implying that they are to blame for their lost property and medical expenses; but in fact AIG is merely asserting that the airline is not at fault.