Air India flight AI171 (Boeing 787, VT-ANB) crashed in Ahmedabad yesterday. All 241 people on board the flight died. The plane fell on a building of a medical college located in Meghani Nagar, killing many MBBS students.
The victim families who lost their loved ones in the Ahmedabad plane crash will now be given compensation worth crores. This will not have any financial impact on Air India's parent company Tata. Insurance companies will have to pay compensation not only to the plane but also to the passengers on board.
Compensation of Rs 1.5 crore
According to the Montreal Convention Treaty, Air India will have to pay compensation of about Rs 1.5 crore to the families of the victims of the plane crash. Air India will also get compensation from the insurance companies in exchange for the crashed plane. Air India may soon announce interim compensation for the victim's families.
Victim families will get Rs 360 crore.
According to estimates, the families of those killed in the Ahmedabad plane crash will get approximately Rs 360 crore. Hitesh Girotra, Vice President, Aviation and Specialty Lines, Prudent Insurance Brokers, says, "As per the Montreal Convention, the amount of compensation will depend on the operator. The plane fell on a residential apartment, so the operator will have to compensate for the loss of third-party property. Air India can get a compensation of Rs 680-980 crore from the insurance company for the crashed plane."
Montreal Convention
Under the Montreal Convention Treaty, made in 1999, a provision has been made for compensation for the passengers who are victims of a plane crash. India also signed this treaty in 2009. The amount of compensation is determined based on SDR. The compensation to be given to the victim's families will depend on the coverage purchased by Air India.
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