Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights

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Air India’s Dreamliner crashed near Ahmedabad minutes after takeoff, killing 242 onboard. Here’s what families must know about compensation, legal remedies, and flight safety rules.

Ahmedabad: Today, on June 12, In a heartbreaking development, the Ahmedabad Police Commissioner has stated that there are likely no survivors from Air India Flight AI171, which crashed near Meghaninagar shortly after takeoff from Ahmedabad airport.

The aircraft struck the hostel dining facility of B.J. Medical College, where several students were having lunch. Reports confirm at least five student fatalities, with 20 others injured and undergoing treatment at Civil Hospital, Ahmedabad.

The FAIMA Doctors Association noted that many MBBS students were directly impacted as the crash occurred during a peak mealtime.

The Directorate General of Civil Aviation (DGCA) confirmed that the aircraft — a Boeing 787-8 Dreamliner — issued a distress call moments after takeoff but lost contact with Air Traffic Control soon after.

On board were 242 individuals, including passengers and crew: 169 Indian nationals, 53 British, 7 Portuguese, and 1 Canadian.

Union Health Minister J.P. Nadda said,

“The news of many people being killed in the plane crash in Ahmedabad, Gujarat is extremely sad… I pray to God to give strength to the bereaved families to bear the unbearable pain and to provide speedy recovery to the injured.”

The Gujarat Chief Minister Bhupendra Patel stated that a green corridor had been arranged

“to transport injured passengers for treatment and to ensure all treatment arrangements in the hospital on priority.”

He also confirmed that

“Home minister Amit Shah… assured full help of NDRF teams and Central Government for rescue and relief operations.”

Air India Chairman N. Chandrasekaran said,

“With profound sorrow I confirm that Air India Flight 171 operating Ahmedabad London Gatwick was involved in a tragic accident today… Our thoughts and deepest condolences are with the families and loved ones of all those affected by this devastating event.”

Gautam Adani, whose group manages the airport, also posted:

“We are shocked and deeply saddened by the tragedy of Air India Flight 171. Our hearts go out to the families who have suffered an unimaginable loss. We are working closely with all authorities and extending full support to the families on the ground.”

British Prime Minister Keir Starmer posted:

“The scenes emerging of a London-bound plane carrying many British nationals crashing in the Indian city of Ahmedabad are devastating. I am being kept updated as the situation develops, and my thoughts are with the passengers and their families at this deeply distressing time.”

Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu posted:

“Shocked and devastated to learn about the flight crash in Ahmedabad… Rescue teams have been mobilised, and all efforts are being made to ensure medical aid and relief support are being rushed to the site.”

Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights
Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights

The airport, temporarily shut down following the incident, has now resumed limited operations. An official probe has been launched, with the DGCA expected to release preliminary findings in the coming days.

Tata Group Announces Rs 1 Crore Compensation for Each Victim of Air India Flight 171 Crash

In the wake of the tragic crash of Air India Flight 171 in Ahmedabad, the Tata Group has pledged significant financial support to the victims’ families.

Tata Sons chairman N Chandrasekaran confirmed in a social media post that each family of the deceased will receive Rs 1 crore as compensation.

Chandrasekaran said in a post on X by Tata Group,

“We are deeply anguished by the tragic event involving Air India Flight 171. No words can adequately express the grief we feel at this moment. Our thoughts and prayers are with the families who have lost their loved ones, and with those who have been injured,”

He further announced,

“Tata Group will provide Rs 1 crore to the families of each person who has lost their life in this tragedy. We will also cover the medical expenses of those injured and ensure that they receive all necessary care and support.”

Beyond financial aid, the Tata Group has also committed to rebuilding the damaged doctors’ hostel at BJ Medical College, which was severely impacted as the plane crashed into the mess area during lunchtime.

the statement added,

“Additionally, we will provide support in the building up of the B J Medical’s hostel. We remain steadfast in standing with the affected families and communities during this unimaginable time,”

The FAIMA Doctors Association shared updates from the medical campus, stating that the wife of a resident doctor was confirmed dead, while multiple MBBS students and some family members of doctors remain missing.

Among those hospitalized, around 50 students are stable, although a few are still in intensive care.

This act of support by the Tata Group reflects a strong commitment to corporate responsibility and community recovery in one of India’s worst aviation disasters.

What Happened?

According to Faiz Ahmed Kidwai, Director General of the Directorate General of Civil Aviation (DGCA), the flight took off at 1:39 PM local time.

Just five minutes later, a “Mayday” call was issued — a universal signal for emergency — from the aircraft to Air Traffic Control (ATC). “Mayday” is an internationally recognised term used by pilots when there is a life-threatening situation in the air.

It was introduced in the 1920s and is derived from the French phrase “m’aider,” meaning “help me.” When a pilot says, “Mayday, Mayday, Mayday,” all other radio communication must stop, and full attention must be given to assisting that flight.

Captain Sumeet Sabharwal, who had 8,200 hours of flying experience, was in command of the aircraft, and the co-pilot was First Officer Clive Kundar, who had 1,100 hours of experience. Despite the Mayday call, communication was lost shortly after.

The aircraft crashed outside the airport perimeter in a populated area. The airline later confirmed the nationalities of the passengers onboard: 169 Indians, 53 British nationals, and one Canadian.

Airline Liability: Compensation Under International Law

In international flights like this one, airlines are legally responsible for compensating victims and their families. India is a signatory to the Montreal Convention, 1999, which governs compensation for injury or death during air travel.

As per the convention, passengers are entitled to a compensation of up to 128,821 Special Drawing Rights (SDRs) — which is approximately Rs 1.4 crore per person, irrespective of who was at fault.

This amount may go even higher if negligence or fault on the part of the airline is proven. While this law is specifically for international flights, Indian carriers also tend to offer similar compensation for domestic flights as per DGCA guidelines.

Importance of Travel Insurance in Air Crashes

Airline compensation, although helpful, might not always be enough in tragic incidents like this. This is where travel insurance becomes very important. While many people see travel insurance as a backup for baggage loss, medical emergencies, or trip cancellations, it becomes crucial in rare but serious events like plane crashes.

There are specific policies called flight accident insurance that focus on risks associated with air travel. Though crashes are rare, their impact is often devastating. This type of insurance offers significant financial relief to affected families.

Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights
Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights

Comprehensive travel insurance policies typically offer accidental death benefits ranging from Rs 25 lakh to Rs 1 crore, and permanent disability benefits from Rs 5 lakh to Rs 10 lakh. Many policies also cover medical expenses, emergency hospitalisation, and medical evacuations.

Reimbursements for flight delays, cancellations, or fixed daily allowances during hospital stays are also part of many plans. For travelers and their families, such policies can reduce the financial burden during tragic times.

Flight Safety in India: Who Regulates It?

This tragic crash has raised important questions about how safe flying in India really is. The safety of Indian civil aviation is monitored and enforced by the Directorate General of Civil Aviation (DGCA), under the Ministry of Civil Aviation. DGCA is responsible for:

  • Making safety rules for airlines, airports, and aircraft
  • Certifying aircraft and pilots
  • Investigating incidents and accidents
  • Ensuring compliance with international safety standards

DGCA functions under two major legal frameworks — the Aircraft Act, 1934, and the Aircraft Rules, 1937. These provide the central government and DGCA the authority to oversee and enforce safety norms.

Key Flight Safety Measures in India

Indian laws ensure that all aircraft must be declared airworthy before flying. DGCA conducts regular inspections and can ground aircraft that are unsafe. Older aircraft or those facing known technical issues are subject to more frequent checks.

Pilots, to remain certified, must hold a Commercial Pilot License (CPL) issued or approved by the DGCA. They are also required to undergo simulator training, periodic medical tests, and must log sufficient flying hours. In this crash, for instance, Captain Sumeet had 8,200 flying hours, and his co-pilot had 1,100.

Flight safety equipment such as Flight Data Recorders (FDRs) and Cockpit Voice Recorders (CVRs) are mandatory. These help investigators identify what went wrong in the event of a crash by recording technical data and pilot communications.

Airlines must also follow strict maintenance schedules approved by DGCA. Any delay or violation is considered a major offense. Every accident or even a technical snag must be reported promptly to the DGCA and the Aircraft Accident Investigation Bureau (AAIB).

Passenger Rights Under Indian and International Law

Passengers and their families have several legal rights in case of flight accidents or negligence. Under Indian law, they can file complaints under the Consumer Protection Act, 2019, if there is a deficiency in service or emotional harm caused by the airline.

Civil lawsuits can also be filed to claim damages or compensation.

Internationally, the Montreal Convention, 1999 makes it mandatory for Indian airlines operating abroad to pay compensation up to 128,821 SDRs (Rs 1.4 crore) per passenger. In case the airline is found to be negligent, the compensation can be even more.

How Often Are Aircraft Inspections Done in India?

Different levels of inspection take place depending on the number of flight hours. Regular Daily Inspections (DI) and Weekly Inspections are conducted routinely. More detailed checks, like C-checks and D-checks, occur every few thousand flying hours and involve deep structural and systems review.

In addition to these, the DGCA also performs random surprise checks to ensure that airlines are following protocols strictly.

Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights
Air India Crash Compensation? What Boeing 787 Passengers Must Know About Liability & Their Legal Rights

However, government audits such as those by the Comptroller and Auditor General (CAG) have shown gaps like shortage of technical staff, poor record-keeping, and delays in scheduled inspections.

What Happens After a Plane Crash?

After a crash like AI171, a full investigation is launched by DGCA and AAIB. One of the first steps is recovering the black box (FDR and CVR) to study what exactly went wrong.

Depending on findings — whether the cause was pilot error, technical failure, or negligence — the airline can face hefty fines, temporary suspension, or even criminal charges if gross negligence is proven.

The victims’ families are provided compensation as per the law. In some cases, the government may step in to provide additional legal assistance or aid.

Compensation Disbursement Mechanism

When a crash occurs, airline compensation is handled in stages:

  1. Interim Compensation
    Airlines immediately disburse interim relief to families of the deceased and injured—often announced within days. For example, in the 2020 Kozhikode crash, Air India Express paid Rs 10 lakh per adult fatality, Rs 5 lakh for minors, Rs 2 lakh for serious injuries, and Rs 50 000 for minor injuries.
  2. Claim Submission & Documentation
    Airlines set up help desks (onsite, email, WhatsApp) to assist families in submitting required forms—death certificates, medical reports, passports, beneficiary details. Air India Express held one-on-one meetings to clarify medical assessments and finalize claim amounts .
  3. Final Compensation
    After examining claims, airlines extend final settlement offers based on the Montreal Convention limits (128,821 SDR ≈ Rs 1.4 crore). Kozhikode payouts were disbursed within two years.
  4. Timeline
    • Interim relief: Days to weeks after crash
    • Documentation & claim processing: 6–12 months
    • Final settlement: Typically within 1–2 years (Kozhikode: by August 2022)
  5. Support infrastructure
    Dedicated help desks, single points of contact, and eased documentation channels (e.g., WhatsApp) streamline the process .

Legal Remedies for Victims’ Families

Families have multiple legal pathways:

  • Montreal Convention claims
    Under the Carriage by Air Act (2016), patients can claim up to 128,821 SDR (~Rs 1.4 crore) for death or bodily injury—even without fault. Additional claims possible if negligence is proven.
  • Consumer forums & civil lawsuits
    Under the Consumer Protection Act 2019, families can sue airlines for “deficiency in service” or emotional distress.
  • Litigation examples
    In Mangalore (2010), victims’ families sued via consumer courts and foreign jurisdictions. The Supreme Court later awarded a record Rs 7.64 crore to a victim’s family after factoring in Dubai income.
  • Time limits
    Montreal Convention sets a two-year limit for filing claims. Delays can bar compensation.

Comparison with Past Crashes (2000–2025)

India has experienced several major air disasters. Here’s how AI171 stacks up:

YearFlight / LocationCauseFatalitiesCompensation Highlights
2025AI171, Ahmedabad → London (B787)Under investigation242Montreal Convention applies
2020IX1344, Kozhikode (B737‑800)Landing overrun (pilot error)21Interim Rs10 lakh; final paid ≈Rs 1.19 crore
2010IX812, Mangalore (B737‑800)Runway overrun (unstabilised approach)158PM relief + Montreal compensation; legal fight
1996Charkhi Dadri mid-air collisionMid-air collision~349Major safety reforms followed

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author

Hardik Khandelwal

I’m Hardik Khandelwal, a B.Com LL.B. candidate with diverse internship experience in corporate law, legal research, and compliance. I’ve worked with EY, RuleZero, and High Court advocates. Passionate about legal writing, research, and making law accessible to all.

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