Compensation unaffected by potential pilot error in Air India crash
After the tragic Air India crash in June 2025, which resulted in numerous casualties just after take-off from Ahmedabad, many wondered if pilot error or even suspected suicide would impact payouts to families.
Experts are clear: no matter what the investigation finds about the pilots, compensation for victims' families is protected.
Airline's insurance covers losses and passenger deaths
Air India's insurance covers losses and passenger deaths even if a pilot made mistakes.
By law (the Montreal Convention), each family gets about ₹1.5 crore per passenger—and possibly more if maintenance issues are found.
Tata Group is also providing an extra ₹1 crore to every victim's family and paying survivors' medical bills.
Total insurance claims could hit ₹4,000 crore
Total insurance claims could hit ₹4,000 crore (about $475 million), covering both the destroyed plane and liability payouts to families—similar to what happened after the Germanwings crash in 2015 when pilot suicide was involved.
Sorting out payments could get tricky across countries
Claims will be handled under Indian laws so that families get paid regardless of who was at fault.
But because some victims were foreign nationals, sorting out payments could get tricky across countries.
Crew members' families might also receive separate life or accident insurance unless policy rules were broken.