After the shocking Air India plane crash in Ahmedabad, where a Dreamliner flight (AI171) with 242 people on board met with a tragic end, the question on everyone’s mind is—what kind of financial help will be given to the families of those who lost their lives?
The aircraft involved was a Boeing 787-8 Dreamliner, and it had 230 passengers and 12 crew members. Reports say that only one person survived the accident, which makes this one of the deadliest incidents in Indian aviation history.
What Global Rule Decides the Compensation Amount?
The amount of compensation in such tragedies is not random. It follows a global rule called the Montreal Convention of 1999. India is also a part of this agreement. As per the Montreal Convention, the family of every deceased passenger is eligible to receive up to 1,16,821 SDR (Special Drawing Rights). SDR is a special currency created by the International Monetary Fund (IMF) that is based on the value of major world currencies like the US Dollar, Euro, Yen, Pound, and Yuan.
At today’s conversion rate, this SDR amount equals around ₹1.4 crore per person. This basic compensation amount is mandatory, even if no one is found at fault.
When Can the Compensation Increase?
This basic limit of ₹1.4 crore can go higher in some cases. If it is proven that the airline was directly responsible, like due to a technical failure, poor aircraft maintenance, or ignoring safety rules—then there is no upper limit on how much compensation the families can claim. In such cases, victims’ families can take legal help and ask for higher financial support.
Who Pays the Compensation – Airline or Insurance?
Generally, both the airline and its insurance company pay the compensation. As per International Aviation Law, the airline must take the first step to pay. But because the amount is very large, the insurance company covers a major part. That is why big airlines like Air India always buy high-value liability coverage to prepare for such accidents.
Travel Insurance Also Helps Some Passengers
Some passengers take personal travel insurance while booking tickets. Those who had this coverage may get extra financial help. Depending on the policy, this can be ₹25 lakh to ₹1 crore for death, and ₹10 lakh for permanent disability.
Is This Rule Only for International Flights?
Technically, the Montreal Convention applies only to international flights. But in India, the DGCA (Directorate General of Civil Aviation) has advised domestic airlines to follow similar rules. Many airlines now provide equal compensation for domestic passengers, too, especially in serious accidents.
Tata Group Steps Forward
After this tragic incident, Tata Group, which owns Air India, has already announced a compensation of ₹1 crore per deceased person’s family. They have also agreed to cover full treatment costs for the injured. The company may make further announcements as the situation unfolds.
Source: Navbharat Times, Economic Times, DGCA Guidelines, Montreal Convention Act
Disclaimer: Compensation figures are based on current estimates and may vary depending on official investigations and legal outcomes.
