ABSTRACT
This article examines the legal and practical frameworks surrounding victim compensation following the catastrophic Air India Boeing 787 crash in Ahmedabad on June 12, 2025, which resulted in extensive loss of life among passengers, crew, and residents of the BJ Medical College hostel. The immediate response involved swift action by emergency services and a coordinated effort by authorities, Air India, and the Tata Group to provide financial and emotional support to affected families. The article details the multi-layered compensation mechanisms available to victims, including ex gratia payments, statutory compensation under the Montreal Convention, and insurance benefits. The Montreal Convention, as incorporated into Indian law through the Carriage by Air Act, 1972, establishes clear liability rules and compensation limits, using Special Drawing Rights (SDRs) to ensure fairness and stability across international claims. Victims’ families can pursue claims under strict liability for up to 151,880 SDRs, with the possibility of higher compensation if airline negligence is proven. The legal framework also extends protection to ground victims, allowing them to seek redress for injury, death, or property damage. The discussion also highlights the significance of accessible legal channels, including consumer protection legislation and court remedies, to guarantee that every affected individual receives prompt and sufficient compensation. Ultimately, it acknowledges that although monetary compensation cannot restore lost lives, well-organized compensation frameworks are essential for providing support to families, ensuring accountability, and helping communities rebuild and recover after aviation tragedies.
KEYWORDS: Compensation, negligence, ex gratia, remedy, liability
INTRODUCTION
On June 12, 2025, Ahmedabad experienced one of the deadliest air disasters in recent memory when an Air India Boeing 787 Dreamliner crashed into the BJ Medical College hostel shortly after takeoff. The aircraft, en route to London with 242 people on board, encountered severe difficulties within moments of departure, prompting a mayday alert before plummeting into the densely populated hostel area. The crash unleashed a massive explosion and fire. This tragedy resulted in the loss of nearly all passengers and crew, with only a single survivor, and also claimed the lives of at least 19 people on the ground, including hostel residents and staff. Emergency services responded rapidly, deploying hundreds of firefighters, ambulances, and rescue teams from across the city and neighboring regions to control the blaze and search for survivors.
In the aftermath, families across India and abroad mourned their loved ones, while authorities and Air India initiated investigations and offered support, including financial assistance and trauma counselling. The local community, deeply shaken by the scale of the disaster, came together to help victims’ families and begin the process of rebuilding the damaged infrastructure. This collective response has highlighted both the profound grief and the remarkable resilience of Ahmedabad in the face of tragedy.
VICTIM COMPENSATION
Victim compensation in the context of air crashes is a critical mechanism designed to provide financial relief and justice to individuals or families who suffer injury or loss of life due to aviation accidents. This compensation serves a dual purpose: it addresses the immediate financial needs arising from the tragedy—such as medical expenses, funeral costs, and loss of income—and it also helps families manage long-term uncertainties that follow such devastating events. The legal framework for victim compensation in aviation is robust, anchored by international conventions and national laws. The Montreal Convention, for instance, establishes the liability of airlines for damages sustained by passengers in the event of death or injury, setting clear guidelines for compensation. In India, the Carriage by Air Act incorporates these international standards, ensuring that victims and their families have a statutory right to compensation.
A notable example is the response to the 2020 Kozhikode Air India Express crash, where the airline provided both interim and final compensation to the families of victims. The compensation amounts were determined in accordance with the legal liability cap of 1,13,100 Special Drawing Rights (SDRs) per person (at that time), as specified under international law. Importantly, Indian courts have consistently upheld that such compensation is a statutory entitlement—not a matter for arbitrary negotiation or discretion. This legal clarity ensures that affected families are not subjected to prolonged disputes or uncertainty regarding their rights. Ultimately, victim compensation stands as a vital expression of accountability and support, helping to restore a measure of stability and dignity to those who have endured profound loss.
MODES OF COMPENSATION
FOR PASSENGERS:
- Ex Gratia Compensation
When a significant aviation accident takes place, organizations or companies often offer ex gratia payments to quickly assist the families of victims. These payments are made as acts of goodwill and do not indicate any acceptance of legal responsibility or obligation. After the crash, Tata Sons announced an ex-gratia payment of ₹1 crore to the families of passengers who lost their lives. Boeing, further supplemented this with an interim compensation of ₹25 lakh, providing immediate financial relief to affected families while formal compensation processes are underway.
- Montreal Convention
For international travel, limits of liability are subject to the Convention for the Unification of certain Rules for International Carriage by Air (otherwise known as the Montreal Convention), or the Warsaw Convention in countries that have not ratified the Montreal Convention.
To pursue a claim under the Montreal Convention 1999 in India, claimants must adhere to specific procedural and jurisdictional requirements set out in both the Convention and Indian law. India has incorporated the Montreal Convention’s provisions through amendments to the Carriage by Air Act, 1972, specifically in Section 4A and Schedule III. These sections make the rules of the Montreal Convention legally binding for all international air travel involving India, regardless of the airlines or passenger’s nationality. This means that if an incident occurs on an international flight to or from India, the affected parties can seek compensation under the Convention’s framework. The law covers the rights and liabilities of carriers, passengers, consignors, and consignees, ensuring a uniform standard for compensation and claims. The Act also clarifies that these rules apply even if the airline is foreign, as long as the flight falls within the scope of international carriage as defined by the Convention. By adopting these provisions, India ensures that claimants have access to well-established international standards for liability and compensation, providing legal certainty and protection for those affected by air accidents or incidents involving international flights
Article 33 of the Montreal Convention establishes jurisdictional options for claimants seeking damages from air carriers. Plaintiffs may file actions in one of four forums:
- Carrier’s domicile (e.g., India for Air India),
- Principal place of business (typically the airline’s headquarters),
- Place of contract formation (where the ticket was purchased via the carrier’s business presence), or
- Flight destination
This framework balances claimant flexibility with legal predictability, requiring airlines to defend in jurisdictions tied to their operations or the flight route. For passenger injury/death claims, Article 33(2) adds a fifth option: the passenger’s principal residence if linked to the carrier’s operations. Jurisdictional choices are exclusive to the plaintiff and bind carriers to the Convention’s liability rules
Claims for death or injury must be submitted within two years of the accident date under Article 35, failing which the right to compensation is extinguished. Additionally, Article 35(2) stipulates that the method for calculating the two-year limitation period is governed by the lex fori (law of the court where the claim is filed). Claimants must preserve all relevant receipts, medical reports, and correspondence to substantiate damages.
Special Drawing Rights (SDRs), an international unit of account created by the International Monetary Fund and based on a basket of major currencies, are used in the Montreal Convention to set fair and stable compensation limits for air carrier liability worldwide. Under the Montreal Convention, compensation for aviation incidents like the Ahmedabad crash is determined using SDRs and operates through two distinct tiers, ensuring consistent and equitable payouts regardless of the countries or currencies involved. The two tiers are as follows:
- Strict Liability Tier (Up to 151,880 SDRs)
Claimants need only establish that an “accident” occurred (e.g., the crash) and provide documentation such as death certificates, boarding passes, tickets, and identification. No proof of airline fault is required, as carriers are automatically liable for damages within this cap. This ensures swift financial relief for medical costs, funeral expenses, or loss of income.
- Claims Exceeding 151,880 SDRs
For higher compensation, Article 21(2) requires proving carrier negligence through evidence like official investigation reports (e.g., aviation authority findings), maintenance records, or expert testimony demonstrating operational failures. If negligence is established, the liability cap does not apply. Otherwise, carriers can avoid additional liability by proving damages resulted solely from third-party actions or were unrelated to their negligence
- Insurance
In addition to statutory compensation, families may claim benefits from personal insurance policies held by the deceased, such as life insurance, personal accident cover, or overseas medical insurance. The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurers to proactively identify eligible claimants from the official passenger list, streamline settlements by waiving certain documentation requirements, and provide dedicated support desks at hospitals. Insurers are required to expedite claims, appoint senior nodal officers, and report progress weekly, ensuring that families receive all entitled benefits swiftly—even in complex cases where both the policyholder and nominee perished, which may require court intervention to determine legal heirs.
- Consumer Laws
Under the Consumer Protection Act, 2019, families of deceased airline passengers can file complaints against airlines for “deficiency in service” as defined in Section 2(11), which covers any imperfection, shortcoming, or inadequacy in the quality, nature, or manner of performance required by law or contract. This includes negligence, failure to ensure safety, or not fulfilling statutory or contractual obligations. Section 35 allows the legal heirs or representatives of a deceased consumer to file a complaint before the appropriate Consumer Commission, seeking redressal for grievances. Claims can address issues such as inadequate safety measures, delayed assistance, or emotional distress, making this Act a comprehensive remedy.
For Air India Staff and Crew:
- Ex Gratia and Interim Payments:
Air India, with backing from Tata Sons is also providing an ex-gratia payment of ₹1 crore to the families of deceased staff and crew. Additionally, Boeing contributed an interim payment of ₹25 lakh per family to help meet urgent financial needs. - Employee Insurance:
Air India maintains group personal accident and life insurance policies for its crew members. These insurance benefits, separate from ex gratia and interim payments, offer further financial security to the families of those who lost their lives in the crash. Such policies are designed to provide timely payouts, ensuring dependents receive additional monetary support beyond what is provided by statutory or company-specific compensation schemes. - Legal Claims:
If official investigations establish that Air India’s negligence—such as maintenance failures, operational errors, or training deficiencies—contributed to the Ahmedabad crash, the families of deceased or injured staff and crew may pursue additional compensation through civil courts. By initiating litigation, they can seek damages aligned with the proven degree of fault and the specific losses incurred, including lost income, medical costs, and emotional trauma. This judicial process often results in substantially higher awards than fixed ex gratia payments or insurance settlements, as courts comprehensively evaluate evidence of negligence. Consequently, families gain access to more tailored financial redress, helping them manage long-term impacts of the tragedy.
For on ground loss:
- Ex Gratia and Medical Support:
The Tata Group has also extended ex gratia payments of ₹1 crore to the families of individuals who lost their lives on the ground, ensuring parity with compensation provided to passengers. Additionally, the company committed to covering all medical expenses for those injured, guaranteeing immediate and comprehensive care. This assistance encompasses local residents, students, hospital staff, and others affected in the vicinity, and Tata Group has pledged support for rebuilding damaged infrastructure, such as the BJ Medical College hostel. - Third Party Liability under the Montreal Convention:
Ground victims or their families may also seek compensation through the Montreal Convention. Article 17(2)(b) of the Montreal Convention broadens the scope of airline liability by holding carriers responsible for damage caused to third parties on the ground if it results from an aircraft in flight. This means that if an aircraft accident leads to injury, death, or property damage to individuals who are not passengers—such as residents or bystanders on the surface—the affected parties or their families can seek compensation from the airline. The provision ensures that victims on the ground are not left without recourse simply because they were not on board, recognizing the potential impact of aviation incidents beyond passengers and crew. Claims can be filed within two years (Article 35) in the carrier’s domicile (India), its principal place of business, or the location where the damage occurred (Ahmedabad). Compensation is strictly liable, but if negligence by the airline is proven (Article 21), higher damages may be awarded ensuring that ground victims have both immediate financial relief and a clear path for further legal recourse if warranted.
CONCLUSION
While financial compensation can never truly compensate for the loss of loved ones in the tragic Ahmedabad crash, structured victim compensation serves as a crucial support system for affected families. This assistance, provided by authorities and the airline, goes beyond monetary value—it represents an acknowledgment of responsibility and a gesture of solidarity with those grieving. The funds help families address immediate expenses such as funeral costs, medical bills, and day-to-day living needs, which can be overwhelming in the aftermath of such a tragedy. Additionally, legal support mechanisms guide families through complex processes, ensuring their rights are protected and claims are processed efficiently. Over time, this support can offer a degree of stability, helping families navigate the emotional and financial uncertainties that follow such a devastating event. Ultimately, while no sum can replace a lost life, these measures demonstrate a commitment to compassion and accountability during a time of profound sorrow.
REFERENCES
https://www.iata.org/en/programs/passenger/mc99/
https://www.indiacode.nic.in/bitstream/123456789/1658/2/A1972-69.pdf
https://legallightconsulting.com/what-is-deficiency-in-service-under-the-consumer-protection-act/
