Air India, Boeing could face unlimited damages after Ahmedabad crash
What's the story
Legal experts in the UK have warned that Air India and Boeing could be liable for unlimited damages if found negligent under international aviation law.
This comes after the tragic crash of an Air India Boeing 787-8 Dreamliner in Ahmedabad on June 12, which killed 241 people on board, including 12 crew members.
The incident also claimed the lives of 29 people on the ground.
Insurance coverage
Here's how liability is determined
Air India has a liability insurance of $1.5 billion, which is reinsured through the London market.
However, if negligence is established in this case, claims could exceed these standard limits.
Under the Montreal Convention, an airline is presumed liable and must pay a minimum compensation of 151,800 special drawing rights (SDRs) for death or serious injury in a crash.
This amount can go up to ₹1.82 crore per person depending on the currency basket's value at that time.
Legal proceedings
Victims can file claims in their home countries
The families of the victims can also file claims in their respective home countries, including the UK.
Here, courts usually take into account future earnings and personal circumstances of the deceased.
The passengers on board included 181 Indians, 53 Britons, seven Portuguese nationals and one Canadian.
Air India has announced ₹1 crore each as compensation for those who lost their lives in this tragedy.
Liability concerns
Boeing could also be liable for unlimited damages
Boeing could also be liable for unlimited damages if a fault with the 787 aircraft is found.
The payouts may vary depending on the victims' nationality and income.
An independent investigation into this disaster has been launched by Keystone Law's international aviation legal team and Chicago-based Wisner Law Firm, which specializes in aviation-related litigation.
Insurance adequacy
Liability pool not likely to be exhausted
Air India's $1.5 billion insurance cover for widebody aircraft is believed to be enough to take care of payouts, although legal battles could push claims higher.
A senior executive from the insurance industry said investigations can take months or years and claims are settled in tranches—starting with initial compensation followed by negotiated settlements or litigation outcomes.
Even after paying full SDR-based compensation and some additional settlements, the liability pool is not likely to be exhausted.