After the tragic accident of Air India flight AI171 going from Ahmedabad to London, new information regarding the insurance amount has come to light. Latest reports suggest that the airline has received approximately Rs 1,145 crore from insurance companies in lieu of the loss of the aircraft. At the same time, a total of Rs 228 crore has been given so far to the families of the victims of this accident. There is a lot of discussion on social media regarding these figures as to why the victims have received only 20 percent of the cost of the plane.
Why is there such a big difference in the sum insured?
Insurance sector experts have clarified the situation regarding this difference. Experts say that aircraft insurance is for the ‘hull’ i.e. the machine, which is disposed of immediately as it is a fixed asset. This is the reason why the payment of Rs 1,145 crore to Air India has been made quickly. On the other hand, compensation given to passengers comes under ‘Liability Claims’. It takes time to identify the legal heirs of each passenger and verify the documents, so the process takes a long time.
How much money will the affected families receive?
According to reports, the Rs 228 crore distributed so far is only an initial help or interim relief. This amount is expected to be much higher in the final settlement. Experts believe that once the entire process is completed, the total compensation can go up to Rs 3,000 to Rs 4,000 crore.
Montreal Convention Rules: Under this, a minimum compensation of Rs 1.6 to 1.8 crore per passenger is fixed.
Tata Group Help: The company, on its part, has said that it will give Rs 1 crore separately to each victim’s family.
Hearing in Supreme Court: Recently, the Supreme Court has also given approval to hear the petitions filed regarding the investigation of this case.
