Air India Plane Crash: One of India’s Biggest Aviation Insurance Payments Ever. The catastrophic Air India crash has resulted in what is now regarded as one of the largest aviation insurance claims in India, with a reported payout of $475 million (or about ₹4070 crore). The tragedy, however, took a contentious turn since much of this compensation is paid not to the bereaved families, but in order to compensate the airline itself for its financial losses.
The biggest portion of the compensation is reserved for the “hull loss”. The total loss of the Boeing 787 Dreamliner that crashed. Victim compensation, on the other hand, has been capped at about ₹1 crore per dead passenger. Tata Sons had earlier put out a figure of ₹1 crore per family with an extra ₹25 lakh from Air India. Although generous as an act, these amounts are dwarfed by international norms.
Under international treaties like the Montreal Convention, relatives of families are legally entitled to a minimum amount of ₹1.7–₹1.8 crore in case of air accidents. The huge disparity between the ₹4070 crore insurance payout. And compensation to families of the victims has raised strong public outcry and discussions on transparency, justice, and corporate accountability.
The crisis has also brought under the limelight the silence of the present leadership. Contrary to the extremely human and open-ended reaction spearheaded by Ratan Tata during the 26/11 Mumbai attacks. There has not been a public word from any senior Tata Group officials regarding the Air India crash victims’ families or press briefings.
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Most citizens are also raising an outcry over the lack of sympathetic involvement by the company. It is raising questions: Why isn’t there a clear policy for compensating the victims? How is the record insurance payout being distributed? Why has the Tata Group been aloof at such a critical juncture?
Air India Plane Crash: While the nation grieves a national loss, pressure mounts on Air India and Tata Group to put people ahead of properties. Openness in the distribution of funds, compliance with international standards of compensation. And direct communication with families can salvage public trust and provide genuine dignity to those lost.