Air India Flight AI171 Crashes in Ahmedabad, Killing 241
Ahmedabad Plane Crash: Air India flight AI171 (Boeing 787, VT-ANB) crashed recently in Ahmedabad in a devastating accident, resulting in the death of all 241 people on board. The severity of the accident is underscored by the fact that the plane crashed into a medical college building in Meghaninagar, claiming the lives of several medical students as well.
This tragedy impacted not only air passengers but also civilians on the ground. Investigative agencies are currently thoroughly investigating the causes of the accident, while legal proceedings regarding insurance and compensation have commenced.
Compensation Mandated Under the Montreal Convention
The process of providing compensation to the families of the passengers who perished in this accident will be conducted under the Montreal Convention of 1999. This convention mandates that airlines provide compensation in cases of passenger fatalities. India signed this convention in 2009, making compliance with its provisions mandatory within the country.
According to the Montreal Convention, if a passenger is involved in an accident on any international flight, the airline must compensate their next of kin within a defined limit. This compensation amount is determined based on Special Drawing Rights (SDRs). 1 SDR is approximately equivalent to ₹110. Current estimates suggest that the family of each passenger may receive compensation of up to ₹1.5 crore.
No Direct Financial Impact on Air India
Despite the complete destruction of the Air India flight in this accident, there will be no direct financial impact on the parent company, Tata. This is primarily because insurance coverage was already in place for both the aircraft and the passengers. Air India is expected to receive compensation from insurance companies ranging from ₹680 crore to ₹980 crore for the crashed aircraft.
Victims and Families May Receive ₹360 Crore
The families of the 241 passengers who died in the accident may receive a total compensation of approximately ₹360 crore. This compensation will be determined based on the insurance coverage taken for the passengers and the operator's liabilities.
According to Hitesh Girotra, Vice President of Aviation and Specialty Lines at Prudent Insurance Brokers, "If the aircraft damages a residential area or third-party property, the operator must also compensate for the damage to that property and the resulting loss of life and property." In this case, since the plane crashed into a medical college building, numerous students and property were damaged. This cost will also be covered by the airline's insurance policy.
What is Included in Insurance Coverage?
Aviation insurance policies typically include three main types of coverage:
Hull Insurance: Covers damage to the aircraft.
Passenger Liability: Provides compensation in case of passenger death or injury.
Third-Party Liability: Compensates for damage to people or property on the ground.
Air India had already obtained all three types of insurance coverage. This is why the company will not face direct financial pressure.
Investigation Underway at the Scene
Following the accident, teams from the DGCA (Directorate General of Civil Aviation) and other technical agencies have arrived at the scene. The black box and flight data recorder have been recovered, and the investigation is ongoing. The Prime Minister's Office and the Ministry of Civil Aviation have taken serious note of the incident and ordered a detailed investigation.
The government has announced additional assistance from the state and central governments for the families of those killed in the accident. However, the main compensation will be provided by the insurance companies and Air India.
Interim Compensation Announcement Likely Soon
According to sources, Air India may soon announce interim compensation for the bereaved families. The purpose of interim compensation is to provide immediate financial relief to the families until the final insurance settlement is reached. This amount could be ₹5-10 lakh per family.
