As Per Law, Air Crash Compensation Cannot be Equal - Insurance Firm
Pics: Dayanand Kukkaje
Daijiworld Media Network—Mangalore (SR/CN)
Mangalore, Sep 14: Representatives of Mulla & Mulla Associates and Air India held a joint press meet at Ocean Pearl here on Tuesday September 14, to clarify certain issues regarding the payment of compensation to the families of the May 22 air crash victims.
Hosang D Nanavati, advocate and solicitor, Mulla & Mulla, the insurance underwriters for Air India, said that the compensation to victims’ family is a statutory liability of the air carrier under the Carriage by Air Act, 1972, which incorporates the Monteral Convention.
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“Under the Convention, the amount of compensation is to be worked out separately in each case on what is called ‘proof of loss basis.’ This is an exercise essentially followed to place the family members in the same financial position as they would have been in if their kin had not perished in the accident,” he said. The deceased person's income as well as his/her role in the family's financial sustainance play an important role in finalising the amount to be paid as compensation, he explained.
“The Montreal Convention refers to a figure of SDR 100,000 which is approximately Rs 70,00,000, but the figure does not represent a minimum liability nor does it represent a figure to be paid to all families equally without distinction. The claimants have misunderstood this aspect. The Convention only provides for damages assessed which work out to a figure upto Rs 70,00,000 or less”, said Nanavathi and added that if the amount assessed exceeds Rs 70,00,000 the airline may challenge it, provided it can prove that the accident was not due to a wrongful act or negligence on its part.
He reiterated that the compensation was meant to cover for the 'loss of livelihood' and not for the 'loss of lives.'
Insisting that the firm was not going against any law, Nanavati said that a settlement had been reached with 12 out of the 21 families that met him.
“The airline is willing to settle all claims on proof of loss basis as stated in the law and we cannot go against the law. We will act as per the law and the claimants can come to the office with their lawyers to check the criteria for the settlement,” he added.
Chellam Prasad, manager, Air India, Mangalore, and Kapil Aseri, chief of finance, Air India, were also present at the meeting.