Montreal Convention Will Decide Compensation For Ahmedabad AI Crash Victims’ Families. Here's How

Air India Ahmedabad crash: According to the Montreal convention, the compensation is determined and applied when the airline is liable for the damage

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Wreckage of the crashed Air India plane being lifted through a crane in Ahmedabad. (PTI)

On June 12, Air India’s London-bound Boeing 787-8 Dreamliner crashed minutes after take-off in Ahmedabad, striking a medical college hostel and killing over 250 people. Of the 242 on board, 241 died in the mishap.

Even as Tata Sons, the company that owns Air India, has announced Rs 1 crore compensation for families of the deceased and the lone survivor, the final amount, experts say, will depend on the Montreal Convention treaty.

WHAT IS MONTREAL CONVENTION?

The Montreal Convention or the Convention for the Unification of Certain Rules for International Carriage by Air is a multilateral treaty adopted on May 8, 1999, in Montreal, Canada, by the member states of the International Civil Aviation Organisation (ICAO).

India joined as the 91st member in 2009.

It is an international treaty that establishes airline liability in the event of:

• Passenger injury or death
• Damage or loss of baggage or cargo
• Flight delays

WHAT IS THE PURPOSE OF MONTREAL CONVENTION?

To modernise and unify the rules governing international air travel across participating countries, improving compensation for passengers and setting clearer liability standards for airlines.

HOW MONTREAL CONVENTION HELPS PASSENGERS

Chapter III of the Montreal Convention is titled ‘Liability of the Carrier and Extent of Compensation for Damage.’ According to the convention, the compensation is determined and applied when the airline is liable for the damage. As of December 2024, it stood at approximately $211,000 in the case of death or bodily injury of a passenger.

The treaty also specifies nearly $8,778 for each passenger in case of damage caused by delay in the carriage of persons. For destruction, loss, damage, or delay related to baggage, the limit per passenger is about $2,115. In the case of cargo, the liability limit has increased to around $36.21 per kilogram.

Passenger Injury or Death (Article 17): Strict liability up to 128,821 SDR (Special Drawing Rights) – (as of December 2024) roughly $211,000 USD or Rs 1,81,59,504. Airlines are liable unless they prove the injury was not due to their negligence.

Delay (Article 19): Airlines are liable for damage caused by delay unless they took all reasonable measures to prevent it. The treaty specifies nearly $8,778 (Rs 7,55,483) for each passenger in case of damage caused by delay in the carriage of persons

Baggage (Articles 17 & 22): Liability for lost or damaged checked baggage is up to 1,288 SDR ($2,115 USD) or Rs 1,82,054. No liability for unchecked (carry-on) baggage unless at fault.

Cargo (Article 22): Liability up to $36.21 (Rs 3,116.87) per kilogram unless the shipper declared a higher value and paid extra fees.

Jurisdiction (Article 33): Claims can be brought in one of five places: the airline’s domicile, its principal place of business, the place of ticket purchase, the final destination, or the passenger’s primary residence (if the airline flies there).

MONTREAL CONVENTION IS APPLICABLE ONLY TO…

International flights between countries that are parties to the treaty. Both India and the UK are members of the convention.

THE ACTION TAKEN AFTER AI CRASH

The Directorate General of Civil Aviation (DGCA) ordered Air India to perform enhanced checks on all of its Boeing 787-8/9 fleet starting June 15, 2025, amid the probe panel set up by the Ministry of Civil Aviation on June 13 to evaluate the circumstances leading to the crash and assess existing Standard Operating Procedures (SOPs) and safety guidelines currently in place.

On June 14 evening, Air India CEO Campbell Wilson said the company will make an interim payment of Rs 25 lakh to each of the deceased’s families and the survivor, besides Rs 1 crore already announced by Tata Sons.

“To provide immediate financial support, Air India will be making an interim payment of Rs 25 lakh, or approximately £21,000, to each of the families of the deceased and also to the survivor. This is in addition to the Rs 1 crore, or approximately £85,000, already committed by Tata Sons," Wilson said.

‘PAYOUT WILL DEPEND ON AI’S COVERAGE’

The nationality of the passengers onboard will define the minimum liability applicable to the airline operator as per the Montreal Convention, Prudent Insurance Brokers vice president (aviation & specialty lines) Hitesh Girotra told PTI.

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While interim compensation may be announced by the airline, final compensation for passengers will be determined under the Montreal Convention of 1999, to which India became a signatory in 2009, brokerage firm Howden (India) MD and CEO Amit Agarwal said.

“Compensation is calculated using Special Drawing Rights (SDRs), which stood at 128,821 SDRs (approximately USD 1.33 per SDR) as of October 2024. The actual payout will depend on the coverage purchased by Air India," Agarwal told PTI.

About the Author

Manjiri Joshi

At the news desk for 17 years, the story of her life has revolved around finding pun, facts while reporting, on radio, heading a daily newspaper desk, teaching mass media students to now editing special copies ...Read More

At the news desk for 17 years, the story of her life has revolved around finding pun, facts while reporting, on radio, heading a daily newspaper desk, teaching mass media students to now editing special copies ... Read More

Location :
New Delhi, India, India

First Published:
June 16, 2025, 16:57 IST