The nationality of the passengers onboard will define the minimum liability applicable to the airline operator as per the Montreal Convention, Prudent Insurance Brokers vice president (aviation & specialty lines) Hitesh Girotra said.
An Arunachal Pradesh woman was allegedly detained at Shanghai airport for nearly 18 hours after Chinese immigration officials refused to recognise her Indian passport, claiming Arunachal Pradesh is part of China.
The only case where there could be a change in insurance payout is if Air India's management were found to be aware of the accident and the accident was deliberate.
The air carriers' liability and insurance draft bill has proposed a five-fold increase in compensation in case of death or injury, the report said.
Aircraft that are lost and their debris aren't found are also covered under the 'disappearance' clause in an aviation insurance policy.
In an interview to rediff.com's Vicky Nanjappa, Mohammad Beary, who represents the victims as president of the Mangalore Air Crash Victims Family Association, explains the manner in which Air India has been trying to settle the dues without adhering to the Montreal convention.
The new rules follow India's ratification of Montreal Convention on the issue by amending its own laws, an official spokesperson said on Monday. Currently in case of death of a passenger, the Indian airlines operating to international destinations provide Rs 7,50,000 as compensation. The new rules would raise this up to 100,000 special drawing rights or over $66,500, that is almost Rs 33 lakhs (Rs 3.3 million).
The Carriage by Air (Amendment) Bill 2008, which got a nod from Rajya Sabha on February 18, was passed by the Lok Sabha after minor amendments.
A Bill to ensure swift compensation for death or injury to air travellers flying in and out of India in line with international norms will be introduced in Parliament in the Budget session.
Based on whether you choose the aviation, Bhopal or LIC numbers, and on the official death toll (in the absence of any other verifiable number), the value of human lives lost in the pandemic would range from Rs 16,500 crore to Rs 94,000 crore, explains T N Ninan.
He also assured the kin of victims that steps would be taken to get them compensation in line with an international convention of International Civil Aviation Organisation (ICAO). Taking stock of the crash of the Dubai-Kozhikode AIE flight in Kozhikode and the relief measures, the minister said pilot in-command of the plane, Captain Deepak Vasant Sathe, among those killed in the accident, was one of the most experienced commanders with more than 10,000 flying hours.
Once it gets the nod of the President and becomes an Act, the law would require Indian carriers to pay compensation amount that is equivalent to the rates paid by their global counterparts.
Overbooking by an airline cannot be done ignoring the sense of duty or liability towards passengers with confirmed tickets, the national commission ruled.
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