By Admin 
Air India Crash: The Insurance Claim Amount has crossed Rs 1,000 crore after the Air India Boeing 787 Dreamliner accident in Ahmedabad. This is the most expensive insurance claim ever in the aviation sector. This amount is more than the total annual premium of the aviation sector across the country.
1,000 crore burden on insurance companies
Let us know that the Tata Group, who owe Air India, has announced to give Rs 1 crore to the family of every person who lost his life in this plane crash. 241 people have died in the accident. In such a situation, it is estimated that the insurance claim can reach Rs 1,000 crore, which can have a big impact on the Aviation Insurance Industry.
Compensation will be given under Montreal Convention
Experts say that compensation should be given to the families of the passengers of Air India crashed aircraft under the Montreal Convention 1999. That is, the dependents of the dead will have to pay 1,28,821 SDR (Special Drawing Rights), which seats Rs 1.4 crore per passenger according to the current rates.
Currently, the price of a SDR is Rs 120, which is based on these five currencies, US $, Euro, Chinese Ranminbi, Japanese Yen and British Pound Sterling. However, the final payment will depend on how much insurance policy was taken by Air India for its passengers.
What is Montreal Convention?
Overall, under the Montreal Convention, there is a legal framework for various issues related to air travel, which is in the interest of travelers. According to this rule, if the airline is responsible for the damage to a passenger, then they will have to pay compensation compulsorily.
India adopted the Montreal Convention in 2009. Under the Montreal Convention (An International Aviation Treaty), airlines are required to pay a compensation of about $ 171,000 (or 1,28,821 SDR) per passenger in case of death. Some experts say that this can be up to $ 250,000 per person.
“Compensation is calculated using SDR,” MD and CEO Amit Aggarwal of brokerage firm Houden (India) told the news agency PTI, which was 128,821 SDR (around US $ 1.33 per SDR) till October 2024. The final payment will depend on the coverage for Air India. ”
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