Mangalore Air Crash: Air India received $50 million; paid only Rs.51 crore to victims

Mangalore Air Crash: Air India received $50 million; paid only Rs.51 crore to victims

Mangalore Today News Network

Mangalore, August 25, 2011: 15 months after the ill-fated Dubai – Mangalore Air India Express Boeing overshot the runway and plunged into Kenjar Valley, killing 158 of its passengers and crew, only 40 percent of the victims’ families have received compensation ranging from Rs. 10 lakh to Rs. 1.15 crore. While the legal battle between the national carrier and the victims’ families association over whether the victims’ kin should be paid as per the provisions of the Montreal Convention is still raging, the families of the aircraft crew have still not been compensated.

The cabin crew comprised four people, none of whom survived the crash. The body of one of them was never found. Their families are still waiting for the compensation and are upset at the way they are being treated by the national carrier. Although the insurance firm still has to compensate all the victims, the national carrier has already claimed an insurance of $50 million.

In response to certain queries placed before him by the Times of India, K. Swaminathan, the deputy general manager (DGM) of corporate communications at AI, stated four days after receiving the queries that the four crew members who were on board the ill-fated Boeing on the day of the crash were initially paid Rs. 10 lakh as interim compensation, after which AI met the families of the crew members on Feb 24, 2011 at the office of Mr. H. D. Nanavati of Mulla and Mulla and Craigie Blunt and Caroe and explained that they would be compensated according to the provisions of the Carriage by Air Act of 1972 although they are only entitled to receive compensations according to the provisions of Workmen’s Compensation Act.

 

 

Further, he said that, although an amount was offered to them at this meeting, the families refused to accept it as they felt they were entitled to receive Rs. 75 lakh, according to the provisions of the Montreal Convention. AI then suggested that they consider the issue and get back to them for further discussions, but the families have still not contacted the national carrier. Regarding the Kerala High Court ruling, AI has already challenged this appeal and a hearing took place on Aug 16, 2011, after which the court has reserved judgment, he said.

Mr. Swaminathan further said that the agreement signed with the crew members specifically states that they are entitled for compensation under the Workmen’s Compensation Act.

He also confirmed that the aircraft was insured for US$ 50 million and that AI has already received the insurance money for the aircraft. He also said that 62 families have been compensated so far and six have been compensated in part, adding that an amount of Rs. 50.96 crore has already been given away as compensation.

Stating that Reliance General Insurance Co. Ltd. is AI’s insurance company, Swaminathan said that the national carrier’s liability toward the kin of passengers who died in the air crash is according to the provisions of the Carriage by Air Act of 1972, which incorporates the Montreal Convention.

Regarding the delay in compensating victims’ families, he said that this is a time consuming process and that the Carriage of Air Act of 1972 provides for payments of interim compensations, according to which the national carrier has already given Rs. 10 lakh to each family. 

He stated that it is difficult for AI to fix a deadline within which to provide compensations because individual families have to first accept the compensations offered by the national carrier.