Mangalore, Sep 14: Chief of Mulla and Mulla Associates H. D. Nanavati has responded to the allegations of the Mangalore Air Crash Victims’ Families Association by stating that all decisions regarding the disbursal of compensations are being taken according to the law.
He told reporters that the claimants appear to have misunderstood certain terms associated with the disbursal of compensations to the victims’ kin. Stating that the AI and its legal representatives understand the pain and grief of the victims’ kin, he said that they cannot be compensated according to their demands because it is against international law.
Confirming that the payment of compensation is the air carrier’s statutory liability as per the Carriage by Air Act of 1972, which incorporates the Montreal Convention, Mr. Nanavati said that, according to the Montreal Convention, the compensation amount should be calculated according to the “proof of loss basis,” which means that the kin will be placed in the same financial position they would have been in if the victim had not died in the crash.
In order to do this, the victims’ income along with the dependency of the kin on the victims’ income will be taken into consideration although it isn’t the only factor taken into consideration while determining the compensation amount, he said.
As many of the claimants mistakenly believe, the figure of approximately Rs. 76,00,000, which the Montreal Convention mentions, does not represent a minimum liability and it definitely does not represent an amount that should be equally paid to the claimants without any distinction, he said.
Confirming that the legal firm is neither violating any international law in disbursal of compensations among the victims, he said that the amount paid compensates for “loss of livelihood” not “loss of life.” He also said that the firm has reached a settlement with 11 families and added that the families, which are demanding more compensation, do not understand international law.