Air India clarifies no deadline for compensation settlements in Ahmedabad crash

Responding to the letter by Radhika Mishra, daughter of former Gujarat Chief Minister Vijay Rupani, a victim of the Air India crash in Ahmedabad, accusing the career of asking affected families of permanently letting go of their rights to sue the airlines and other stakeholders before accepting compensation, the Tata Group-owned airlines has stated that it was not exerting any pressure or issuing any deadline to the keen of crash victims to accept the final compensation offer.

‘No pressure to accept compensation’

Air India further stated that the affected families are “entirely free” to wait for the final investigation report to be released before taking a call on accepting the final compensation offer.

Also Read: As fuel prices take off, Air India to ground 22pc of domestic flights

Mishra, in an email to Tata Sons and Air India Chairman N Chandrasekaran, opposed the condition of legal waiver, stating that the probe into the crash was yet to be completed, but the airline was asking the affected families to forego their current and future claims even before all the details about the crash come out.

Air India’s clarification

According to a report in the Indian Express, Air India clarified that it made the final compensation offer as several families were willing to receive the compensation without waiting for the final probe report, adding that the waiver stipulation was in line with the approach taken globally by airlines in such a situation to ensure that the settlement is actually final.

Also Read: Three Air India aircraft damaged by ground equipment during storm at Delhi airport

“There is one matter we would respectfully clarify at the outset: there is absolutely no deadline or pressure on any family or individual to accept our offer within a set timeframe. It is for this reason that our offer of final compensation did not set out any timetable for acceptance. Families are entirely free to wait until the investigation report has been released, as some have chosen to do,” stated Air India.

Air India cites global settlement practice

“However, it is also worth pointing out that the investigation is independently conducted by the AAIB (Aircraft Accident Investigation Bureau), and therefore Air India is not aware of when the report will be released. In light of the numerous requests that we received, and conscious of our own obligations, we felt that it would not be fair to families who wish to proceed with final compensation if we were to put the process on hold indefinitely,” it added as quoted by the Indian Express.

It also sought to reassure Mishra, stating that the phrasing of the Receipt, Discharge & Indemnity document (RDI) was in line with the usual approach taken by airlines in such a situation.

Also Read: Air India to cut international flights amid Rs 22,000 crore losses, rising jet fuel costs

“We fully understand your apprehension in relation to the wording in the Receipt, Discharge & Indemnity document (RDI). We want to reassure you of the following: The wording used in the RDI mirrors the usual approach commonly taken by airlines, both internationally and in India, in such circumstances…families that wish to await the results of the investigation before entering into the RDI are entirely free to wait. Equally, those families who wish to proceed with final compensation have the flexibility of choosing to do so,” Air India wrote to Mishra.

“As such, the reason for the broad wording is only to ensure that settlements of final compensation are indeed final, and to protect Air India from receiving any direct claims (from other family members) or indirect claims (from equipment manufacturers, suppliers etc.) in the future, despite families having entered into a final settlement with Air India,” it added.

Compensation package and waiver clause

The final compensation being offered by Air India is in addition to the interim relief of Rs 25 lakh per victim and the Rs 1 crore ex gratia assistance announced through the AI-171 Memorial and Welfare Trust set up by the Tata Group.

Also Read: Air India Ahmedabad crash: Karti Chidambaram flags new inputs

The final amount varies depending on individual circumstances. Compensation in aviation accidents is governed by domestic and international laws, including the Montreal Convention, under which airlines are strictly liable up to around 151,880 Special Drawing Rights (SDRs), or nearly Rs 2 crore per passenger. Higher claims may be pursued if negligence is established.

Air India began the final compensation process in October and sought undertakings from families accepting settlements that they would not pursue future claims against the airline, manufacturers such as Boeing and General Electric, or other stakeholders. The waiver clause has faced objections from some families. The crash claimed 260 lives, making it India's worst aviation disaster in nearly four decades.