Compensation Framework for Air India Crash Victims
Families of passengers on Air India’s London-bound flight AI 171 that crashed recently will receive compensation through the airline’s liability insurance policy. The Montreal Convention of 1999, to which India is a signatory since 2009, governs the compensation framework for international flights.
Airline Liability Coverage
Air India, through its insurers, will pay 1,28,821 Special Drawing Rights (SDRs) per deceased passenger. At the current exchange rate, this translates to approximately Rs 1.5 crore per passenger. However, receiving any amount beyond this fixed SDR compensation requires family members to prove in court that the airline was at fault.
Additional Compensation Measures
- The Tata Group has announced an ex gratia compensation of Rs 1 crore for each person who lost their life in the crash, including those killed on the ground.
- Air India will provide an interim payment of Rs 25 lakh each to the families of the deceased and survivors to address immediate financial needs.
Claims Process
To receive the insurance payout, legal heirs of the deceased must file claims with:
- Death certificate
- Proof of ticket
- Nominee certificate or legal heirship certificate
The airline’s claims department will process these claims through its aviation liability insurers. A loss adjuster will be appointed to facilitate communication between the claimants and insurers.
Dispute Resolution
If the compensation amount is not acceptable, families can file a civil lawsuit to determine additional compensation. While the Montreal Convention encourages settling claims within two years, disputes may take longer to resolve.
Other Insurance Policies
Families can also claim benefits from other insurance policies held by the deceased, such as:
- Life insurance
- Travel insurance
- Credit card-linked accident insurance
Each policy has specific rules and requirements for compensation claims.
Third-Party Liability
For those killed or injured on the ground, families and property owners can claim compensation from Air India under third-party liability coverage. The airline’s liability insurance will cover these claims, subject to investigation and legal procedures.
Fast-Tracking Claims
The Insurance Regulatory and Development Authority of India has directed insurers to accelerate the claims settlement process by:
- Obtaining victim authentication lists from authorities
- Verifying details from insurance databases
- Setting up a dedicated cell to assist with claims
Insurers are required to submit weekly reports on claims settlement data starting June 16.
