10 Essential Facts Flyers Should Know About ICAO’s New Compensation Rules Starting December 28

In a latest amendment, the International Civil Aviation Organisation (ICAO), recently revealed that it will increase compensation limits for availing to all international travellers including those travelling to and fro India. The Limits include the compensation of claims such as death or injury, flight transport delays and missing or damaged baggage hence more inbuilt protection comforting in the event of an air travel tragedy.

10 Essential Facts Flyers Should Know About ICAO’s New Compensation Rules Starting December 28

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Here Are 10 Notable Things That Every Flyer Should Be Aware Of:

1) New Compensation: As of December 28, the International Civil Aviation Organisation (ICAO) will provide more compensation limit for airlines as per the Montreal convention. This is good news for international travelers who are protected by this convention.

2) Coverage: The latest alterations will cover claims regarding passengers’ death, injuries, flights delays, and any loss or damage of baggage or cargo. These alterations are meant to simplify international travel to the extent of rights and protection guaranteed to them.

3) Death Compensation Hike: The new Montreal Convention comes with an amendment that changes the compensation ceiling in case of death in an accident. The limit has now been increased to 151,880 Special Drawing Rights (SDR), up from the previous 128,821 SDR. For travelers in India, this has meant an increase in compensation from approximately INR 1.4 crore to about INR 1.7 crore at the present exchange rates.

4) Legal Framework: India acceded to the Montreal Convention in 2009 providing the much-needed international regime for air travel. The said Convention prescribes maximum levels of liability for a number of situations including but not limited to injuries, death, delay, loss or damage to baggage.

5) Automatic Review Mechanism: In this regard, it is noteworthy that the Montreal Convention contains a mechanism for reviewing the levels of liability which is done every five years due to inflation. This last revision whereby limits were adjusted by ICAO reviewed the limits to earning and inflation.

6) Impact of Compensation Limits: It should be emphasized at this point that the new upper limits will not always be the very figures which the passengers or their relatives would get in practice. The sums payable in particular differ according to the facts in the case, for example, between the airlines and the claimants.

7) Previous Compensation Related to Accidents: For example, in the case of the 2020 Air India Express IX-1344 incident, the dependent family members were paid compensation ranging from 500000 Indian rupees to 1000000 Indian rupees. This case disclosed the difficulties in the process of obtaining reparation according to the provisions of the Montreal Convention.

8) Legal Contentions on Compensation: In the aftermath of the Air India Express disaster, some of the survivors’ families made compensatory claims that were higher than the amounts determined by the Convention. Kerala High Court dismissed their claims, since they had accepted payment once before, but the matter has progressed to the Supreme Court.

9) Issues Heard in the Supreme Court: In the month of October 2023, the Supreme Court labelled Air India with a notice regarding petitions seeking compensation increase for victims of the Air India Express accident, showing that the issue of compensation rights is being fought legally.

10) What should the travelers be mindful of: Passengers are expected to receive more benefits under the new compensation regime and in particular will be better protected in the event of an accident. However, even so, it is essential to understand the obligations that an airline has and the nature of this relationship in order to handle such situations effectively.