Air India's AI171 crash compensation aligns with previous industry practices: experts
CHENNAI: The compensation offered by the Tata Group, which owns Air India, for the victims of the AI171 plane crash, aligns with previous industry practices in India concerning aviation accidents, say industry experts.
In response to the devastating AI171 plane crash on June 12, the Group had announced a compensation package of Rs 1 crore for each deceased individual, including both passengers and ground victims.
The group has also assured full coverage of medical expenses for those injured in the crash.
Air India flight AI171, a Boeing 787-8 Dreamliner, tragically crashed on 12th shortly after takeoff from Sardar Vallabhbhai Patel International Airport in Ahmedabad. The aircraft, en route to London Gatwick, crashed into the hostel block of B. J. Medical College in the Meghaninagar neighborhood. The crash resulted in the deaths of 241 individuals, including 230 passengers and 12 crew members. Additionally, 38 people on the ground lost their lives, and over 60 others sustained injuries.
"The compensation offered by the Tata Group is well aligned with the previous industry practices in India concerning aviation accidents," said a senior civil aviation industry consultant, talking to The New Indian Express.
Tata group and Air India also said on Friday that they will support the reconstruction of the BJ Medical College hostel, which was severely damaged during the crash.
"This compensation reflects the airline's commitment to supporting all affected individuals, irrespective of their status as passengers or ground residents," added the consultant.
Air India had in two previous crash incidents in India settled the cases by the similar level of industry standards. In the 2010 Mangalore crash, Air India Express settled 159 cases for a total of Rs 115 crore, averaging approximately Rs 72 lakh per victim.
In 2012, the Kerala High Court directed Air India to pay Rs 75 lakh each to the families of victims in the Mangalore crash, marking one of the highest interim compensations at that time.
"These precedents highlight the evolving standards of compensation in the Indian aviation sector, aiming to provide adequate support to victims and their families," says another industry expert, who provide advisory services on aviation insurance to the industry as well as consumers.
In addition to the Tata Group's efforts, the Indian government has pledged full support to the affected families, including the establishment of support centers and the provision of necessary assistance during this challenging time.
Meanwhile, the Aircraft Accident Investigation Bureau (AAIB), in collaboration with international agencies including the UK’s Air Accidents Investigation Branch (AAIB), Boeing, and GE Aerospace, is conducting a thorough investigation into the cause of the crash. Preliminary reports suggest potential faults in the engine, flaps, or landing gear.