MUMBAI: In a move set to benefit passengers boarding international flights, including those to and from India, the International Civil Aviation Organization (ICAO) has announced significant increases in compensation limits payable by airlines in cases of death, injury, flight delay, and baggage and cargo issues.
The revised upper limit for compensation payable under the Montreal Convention will take effect on Dec 28, said ICAO Saturday.For instance, the upper limit for compensation in the event of death has increased from 1,28,821 Special Drawing Rights (SDR) to 1,51,880 SDR. In case of international flights to/from India, this is an increase from Rs 1.4 crore to Rs 1.7 crore, based on current rates.
The Montreal Convention, formally known as the Convention for the Unification of Certain Rules for International Carriage by Air (MC99), establishes a comprehensive framework for international air travel. It sets liability limits for airlines in cases of injury, death, delay, baggage, and cargo issues.
The revision comes as part of the Convention’s built-in review mechanism, which adjusts for inflation every five years. ICAO has asked these countries to put in place legal provisions by the end of Dec. The MC99 liability limits apply to 140 countries, including India.
The revision pertains solely to the upper limit for compensation payable by airlines and is not an indicator of the actual compensation the next of kin might receive in the event of death.
For instance, the compensation payable for the 21 deaths and 167 non-fatal injuries in the 2020 Air India Express IX-1344 Dubai-Calicut accident came under the provisions of MC99. The then govt-owned airline paid the next of kin compensation, ranging from Rs 10 lakh for families of adults over 12 years old to Rs 5 lakh for families of children under 12 years. An interim compensation of Rs 2 lakh was provided to critically injured passengers and about Rs 50,000 to other injured passengers.
The passengers sought legal recourse for compensation payable to them under MC99. They contended that under the Convention, a fixed amount of Rs 1.34 crore must be paid. Kerala HC dismissed the case, stating that the petitioners voluntarily accepted the compensation initially offered by Air India Express and so could not subsequently challenge it as being lower. The petitioners moved the Supreme Court. Last Oct, the SC issued a notice to Air India, now a private carrier, in response to the special leave petitions filed by passengers seeking higher compensation for the death of their kin.
