Global Implications of Air India Crash under Montreal Convention

The recent Air India crash in Ahmedabad, which involved 242 passengers and crew, has highlighted the operational aspects of the Montreal Convention, of which India is a signatory. According to experts, the nationalities of the passengers will play a significant role in determining the compensation distributed to their families.

Compensation is assessed based on Special Drawing Rights (SDRs) rate, and the actual payout will hinge on the coverage procured by Air India. The brokerage details underline a complex web of international insurance coverage, where the financial burden is shared across a network of global reinsurers.

Coverage for the aircraft damage, a 2013 model Dreamliner, is part of the existing aviation hull all-risk section. Reinsurance for aviation incidents is typically distributed globally, ensuring no single insurer shoulders the full risk—a practice fundamental to managing financial impact in such events.

(With inputs from agencies.)