April 12, 2016 TnH Global 0

Indian flyers to get more compensation now

Air carriers will have to pay a compensation of up to Rs. 4.37 Lakh to flyers for delayed flights

As per the result of the proposal made by Central government last year in order to revise the Carriage by Air Act. The proposal has been passed by the parliament lately, and further approved by the President, which means airlines will now have to pay a higher compensation in case of flight delays, loss of baggage and accidental deaths according to the 1999 Montreal Convention.

In order to ensure global equality, compensation amounts are set in Special Drawing Rights (SDRs). The value of the SDR will be calculated using multiple currencies, as established by the International Monetary Fund. In India, the 1 SDR presently equals to Rs. 93.27.

As per the new approved proposal, flyers on delayed flights will get a compensation of up to Rs. 4, 37, 810 against Rs. 3, 56, 500 (earlier). While in case of death in any aviation incident, the dues to flyers have been increased from Rs. 85, 90,500 to Rs. 1, 05, 48, 837. Also, the compensation for loss or damage to baggage has been increased to Rs. 1, 05, 488 from Rs. 85, 900.