It is nearly three weeks since the Air India Express from Dubai crashed at Mangalore International Airport (May 22), killing 158 persons onboard, including six crew..." />
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Mangalore air disaster: Time to look at the compensation

Mangalore air disaster: Time to look at the compensation


Mangalore Today News Network

Mangalore, June 16: It is nearly three weeks since the Air India Express from Dubai crashed at Mangalore International Airport (May 22), killing 158 persons onboard, including six crew members.


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The cause of the tragic accident is yet to be ascertained and it may take many more weeks or months before the truth is known. The families of the victims — some of whom could not even identify the bodies — are still in deep shock. They need to somehow overcome their sorrows and take a look at the compensation that the airlines is legally bound to offer.


India is a signatory to the Montreal Convention on Air Carrier Liability of 1999. It introduced the principle of the air carrier’s ‘unlimited civil liability’ in the event of bodily injury; this splits into two tiers: a first tier of strict carrier liability for damages of up to 100,000 SDRs (special drawing rights, as defined by the International Monetary Fund; 1 SDR is equivalent to $1.5).


air crash


In excess of that amount, a second tier of liability based on the presumed fault of the carrier which the latter may avoid only by proving that it was not at fault (the burden of proof is on the carrier).


India became the 91st country to have ratified Montreal Convention 1999 (also called M99) which was incorporated into the Carriage by Air (Amendment) Act, 2009.



Strict liability
As per the Act, in case of death of a passenger, there is a “strict liability” of 100,000 SDRs. It says the carrier shall not be liable beyond this limit if it proves that: such damage is not due to negligence or other wrongful act or omission of the carrier; or such damage is solely due to negligence or other wrongful act or omission of a third party. 


What it really means is that the next of kin of each passenger who lost his/her life in the Mangalore accident may not only get up to 100,000 SDR (roughly Rs 69.42 lakh), but the compensation can be even higher, if the other parameters are met. But, experts point out that it does not automatically mean that all or any of the passengers of Mangalore disaster will get the above mentioned amount fully as the final settlement depends on various factors, which will be explained later.   



R K Singh, who was joint secretary in the civil aviation ministry and now pursuing masters in aviation law, told Deccan Herald: “As per the Act, liability is unlimited if negligence is proven on the part of the airline.” According to him, “Article 17(1) of the M99 provides for carrier’s liability in case of death or bodily injury of a passenger.” 


Singh says though as far as the passenger is concerned, the liability is ‘entirely’ that of the carrier, many of them would invariably have taken the insurance cover. As regards jurisdiction, the former IAS officer opines that the determination of damage is left to the local law but a victim/kin can seek compensation in his country of birth or residence. 



Compensation package
According to an advocate who specialises in compensation issues, not all passengers will be entitled to receive 100,000 SDR. The amount of 100,000 SDR represents the limit of the airline’s/carrier’s liability. There are two parts to how the claims are settled.
Part 1: interim compensation: It is important to know that the interim compensation of Rs 10 lakh offered by the airline is their statutory duty to do so under section 28 of Schedule III.  This amount will be deducted from the final compensation that will be paid out.
Part 2: final settlement: Consortium of insurance companies may want to settle as soon as possible, individually with the families. They will offer compensation amounts depending on the basis of calculation of the quantum of damages claimed. The important factors that influence the offer which the airline/insurer will make are (i) age of the deceased passenger, (ii) educational status, (iii) employment, (iv) last salary drawn, (v) marital status, (vi) general economic status, (vii) number of dependents, (vii) the extent of dependency, among others. 



Each of the facts claimed must be supported by documentary evidence. This means that a deceased passenger who was a salesman will most probably be offered far less amount than, say a deceased passenger who was a businessman. A lady victim who was a doctor, for example, will be offered far more than just a housewife who may have died. The same is true in case of a child killed in the tragedy.


The advocate source says: “It is important for claimants to know that there is no time limit within which they must settle with the insurers/reinsurers. Just because you choose to think the matter through, seek advice, try and get professional help to directly negotiate with the insurers so as to maximise the settlement amounts, it does not at all mean that the airline/insurer will be absolved of its liability or can refuse to settle the claim later. 



“Therefore, the families should not get pressured into early settlement, after receiving the interim compensation, from the airline. It is important to try and get together with other bereaved families/survivors and to form a family group/association so that all together have a better negotiating status,” he says.


The advocate added: “Please also know that other compensation amounts that have been offered to bereaved families and survivors by the prime minister and the chief minister of the state have no connection with the compensation which the airline is liable to pay out. These amounts are in addition to the compensation which the airline/ insurer has to pay.”

Courtesy- DHNS, By B S Arun


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