In a landmark decision set to benefit international passengers, including those flying to and from India, the International Civil Aviation Organisation (ICAO) has raised compensation limits for airlines under the Montreal Convention. These increases apply to claims related to death, injury, flight delays, and baggage or cargo mishaps, offering enhanced protection for travellers. The new limits will take effect on December 28.
ICAO Boosts Compensation Limits For Airline Mishaps
Under the Montreal Convention, also referred to as the Convention for the Unification of Certain Rules for International Carriage by Air (MC99), there is now a 151,880 SDR upper limit on compensation in the event of death, up from 128,821 SDR previously, according to Times of India. For Indian passengers, this means a significant increase in compensation, going from about ₹1.4 crore to ₹1.7 crore at current exchange rates.
India ratified the Montreal Convention in June 2009, which created a comprehensive legal framework for international air travel. The Convention covers liability limits for various situations, such as accidents, fatalities, delays, and luggage problems. Reportedly, a built-in review mechanism updates the compensation limits every five years to account for inflation. The ICAO has urged countries to put the required legal measures into effect by the end of December.
However, the revised upper limits do not necessarily reflect the actual compensation. For example, the compensation for the 2020 tragic Air India Express IX-1344 accident—which claimed 21 lives and injured 167 others—illustrated how intricate these legal frameworks are. Families received compensation from the government-owned airline, which at the time was worth ₹5 lakh to ₹10 lakh.
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Legal Implications And Ongoing Cases
Following the Air India Express accident, families filed lawsuits to increase their compensation under the terms of the Montreal Convention, sparking legal battles over compensation amounts. Times of India reported that the Kerala High Court denied these claims, stating that the petitioners were unable to contest the compensation later because they had previously accepted it. However, they contended that an SDR one lakh minimum compensation is mandated by international law, leading them to take the case to the Supreme Court.
In October 2023, the Supreme Court notified Air India about the petitions for increased compensation concerning the deaths associated with the IX-1344 disaster, as per the Times of India reports. The current legal debate highlights how difficult it is for travellers to understand airlines’ obligations and rights to compensation.
Travellers can now expect a more comprehensive compensation structure that takes into account the realities of air travel.
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