As Per Law, Air Crash Compensation Cannot be Equal - Insurance Firm


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.

“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.

  

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  • ABDUL RAZAK, Basrur/Manglore

    Sun, Sep 19 2010

    EXCERPTS FROM TIMES OF INDIA DATED-28/7/2010
    AUTHORITES OF AIR INDIA SAID THAT"AIR INDIA IS COMMITTED TO THE CAUSE OF EACH OF THE VICTIMS AND THE SURVIVORS AND WILL FOLLOW ALL INTERNATIONAL CONVENTIONS GOVERNING SUCH AN ACCIDENT"

    EXCERPTS FROM TIMES OF INDIA DT.3/9/2010
    STATMENT OF LEGAL COUNSELS FOR AIR INDIA "THERE IS NO ASSEMBLY LINE FORMULA TO SAY THAT THIS IS PAYABLE OR NOT.WE HAVE TO START SOMEWHERE.SO IN CASE OF CHILD WHO IS NOT EARNING, WE HAVE PAID RS 25LAKH".

    AS PER SECTION 17&21 OF THE CARRIAGE BY AIR (AMMENDMENT)ACT 2009 THE 1ST TIER COMPENSATION PAYABLE IS NOT EXCEEDING SDR RS 1LAKH(AROUND RS 70LAKH) AND THE CARRIER SHALL NOT BE ABLE TO EXCLUDE OR LIMIT ITS LAIBILITY.
    AS PER THE ACT WHEN THE COMPENSATION AMOUNT(1ST LEVEL) PRESCRIBED FOR PAYMENT IS FIXED,IT IS NOT CLEAR, WHY THE COUNSELS OF AIR INDIA APPLY A FORMULA FOR DETERMINING THE SAME,LIKE THE ONE BEING FOLLOWED IN THE CASE OF MOTOR ACCIDENT CLAIMS /FATAL ACCIDENT CLAIMS ETC..

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  • Balakrishna Shetty, Yellur/Dubai

    Sat, Sep 18 2010

    How does it matter to Air India or the Aircraft which passenger was rich and which poor as long as all of them bought tickets. The rich will have his personal insurance cover to take care of his loss. But the passengers need to be treated equal.

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  • AH, udupi

    Sat, Sep 18 2010

    Mr.Denis for ur information when Mr.Nanavati gives appointment to meet us (victims fly) ask us to bring lawyer with us otherwise he will nt take the case. I per my knowledge there is no lawyer who knows monterial law fully & specilasied in aviation insurance law for this we need lawyer fron UK, USA to fight case. i'm the member of victim fly. Who will pay court fee, money what we will get after may yrs will have value after deducting expences till then who will look after the fly of victims. when money comes no sympthay for victimf fly.

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  • Abraham Coutinho, Mundkur/Bombay

    Sat, Sep 18 2010

    Many comments are irrelevant. One has to talk within the given premises under the Logic. Talking outside it will never lead to conclusion and truth. The whole compensation starts from the Insurance Act framed under it's rules, accepted and ratified by the countries. It is binding. We have no right to go out of it. If changes needed then amend the Act. Till then we are within it's limit.

    AI claims damages for aircraft loss. Passengers claim
    is different one. It's not disputed to certain extent. Beyond that it is disputable. Under the Law of Torts, the Master is liable for fault the of Servant. So for Pilot's mistake AI is responsible. For such eventualities AI has insured the passengers which it claims and gives to passenger's kins else the kins themselves have to approach Insurance Company directly. Time consuming and trouble some act.

    I really thank Mr. Abdul Razak, Saleem Javed, Melwyn for their authentic information about this Law.

    When I was studying Law I also argued with my Professor the point - All are equal in front of the law as per Indian Constitution. Still then why I see the difference in real life. He said, "yes, you are right. Equal people are still treated equally. What you do not know is, you can not be treated equally in front of the President of India. Past President and Present Presidents are treated equally and not you".

    Air tkt paid equally does not enable you for equal compensation. It is only on loss of earnings. That is the Law.

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  • Dennis, Udupi / Dubai

    Sat, Sep 18 2010

    SDR is a IMF devised currency and SDR 113,100 have been revised in December 2009 in accordance with Montreal Convention Article 26. Earlier it was SDR.100,000. It is indeed no-fault first tier liability that the airline is under absolute obligation to pay without any defense. The only defense available under Article 21 is that if airline could prove fault of the traveling passenger in causing his death or injury only then it can defend itself. However, in present case, the airline must pay this amount without delay to all passengers.

    This first tier liability is called so as the victims may claim more than this. It means if the victims could prove that death of their loved one was caused due to negligence of the airline then damages claim has no limit and unlimited damages may be claimed through a formal suite. However, No Fault liability as explained under Montreal Convention 1999, is to be paid without any litigation. Where the victim was to move the court to claim this amount.

    The Montreal CONVENTION makes cost of litigation and accrued interest up to date of payment as permissible under the law. The claim must be initiated within 2 years. So it’s very clear that Mulla & Mulla Associates is misleading the public, in order to make money out of this tragic incident. Claimants PLEASE REMEMBER, not to sign any papers, unless they are verified by your TRUSTED Lawyers.

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  • Saleem Javed, Malpe,Udupi

    Fri, Sep 17 2010

    Nanavati is going by THE CARRIAGE BY AIR ACT 1972 which is outdated and the said act is further amended as THE CARRIAGE BY AIR(AMENDMENT)ACT 2009 .Under the Montreal Convention, air carriers are strictly liable for proven damages up to 100,000 SDR,a mix of currency values established by the International Monetary Fund, approximately $138,000 per passenger at the time of its ratification by the United States in 2003 (as of June 2009, around $154,800).

    Where damages of more than 100,000 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable to the negligence of a third party. This defence is not available where damages of less than 100,000 SDR are sought. The Convention also amended the jurisdictional provisions of Warsaw and now allows the victim or their families to sue foreign carriers where they maintain their principal residence, and requires all air carriers to carry liability insurance.

    The Montreal Convention changes and generally increases the maximum liability of airlines for lost baggage to a fixed amount 1000 SDR (the amount in the Warsaw Convention is based on weight of the baggage).Its very much clear that there was a negligence in the part of aircraft and according to the law, bereaved are elegible 2 get the full compensation entitled as per the montreal convention and new amendment of 2009 is concerned.Income remains abstract which is immaterial under Law.

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  • Roland, Mangalore/Mumbai

    Fri, Sep 17 2010

    Air India is claiming the complete compensation from the insurance company and passing on meagre amount to the victim's families. Air India is trying to make money out of the Dead. Mulla & Mulla are interpreting the law to the conveneince of Air India and trying to tap big money as advisers to Air India. It is high time for Air India to pay the full compensation which is mentioned in the Law in the event of loss of life in air disasters.

    Please let us know the complete "Contract of Carriage" mentioned in the tickets and adhere to it please. Do not try to reduce your losses by tapping part of the compensation which meant for victim's families.

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  • KT, Mangalore

    Fri, Sep 17 2010

    More compensation not given to rich people, it’s given based on persons earning capabilities. Even poor man from India earns good money in gulf.

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  • sowmya, moodbidri

    Fri, Sep 17 2010

    Why more compensation is given more to rich people and not the needy . let the air ticket for poor be free of cost . and let rich people pay more . this is purely partiality ,the entire system is corrupted

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  • thomasaquin, mangalore/indonesia

    Fri, Sep 17 2010

    Maybe he was earning x amount when he dies in the crash. On what basis do you conclude that he will not earn 10 X x times next year. If dhirubhai Ambani died in a crash when he was a petrol pump operator, then he would get 70 lakh, but maybe 30 years later, he would be entitled, many more times the money. So how do you predict??

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  • patrick dsouza, mangalore

    Thu, Sep 16 2010

    In a company the staff are appointed by an interview taken by the chairman and the comitte with their knowledge and skills, but you r correct when the the plane crashes when it carry's thier own staff without taking fair. but this plane was taking public which they have not given an interview before buying an air ticket, and they r not working for indian airlines but they r only travelling.

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  • Jawar D'Souza, Doha/M'lore

    Thu, Sep 16 2010

    I think all should be paid equal compensation, proof of loss basis can be applied only to high yeiding jobs specially in europe, states or cannada. If we applly this convention to the poor labour's working in the middle east it will not benift from them. Any way Insurance company has got a hidden Logo that is dogs mating, to put in it is easy but to remove out it is difficult.

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  • maganjam, muscat

    Thu, Sep 16 2010

    If this is the case than what about unemployeed persons.
    At the time to issueing, just they ask name, sur name or passport no..

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  • Tom Cat , Mangalore/ Saudi Arabia

    Thu, Sep 16 2010

    The flight was an international flight and ticket paid in foreign currency by most passengers so how come the value is considered in India rupees, at Indian standard. Most claims are grabbed at, what you get, and that what the Insurance under writers want it to happen. A court battle with a good lawyer will yield good results but takes time and sets an example that is used to justify similar occurrences at a later time (precedent). Any body out there

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  • Ron, Mangalore

    Thu, Sep 16 2010

    I dont understand why there is so much hue and cry over the compensation amount. Lets remember that no amount of money can ever replace a human life. Having said that, I believe the compensation method is very much correct. Only a few families are dissatisfied with this.

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  • KT, Mangalore

    Wed, Sep 15 2010

    Patrick, Just look around in your office and see how many people of same qualification are paid equally? If not why? There is something counts in paying salary too. Am I right?

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  • patrick D'souza, mangalore

    Wed, Sep 15 2010

    All the passenger's paid equal fair and when they issued the tickets the high earner not paid heigh fair and the airlines issuing tickets not in the bassis of high and low earner so how they can do after the death of the passingers

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  • Walter Pereira, Mangalore / Shenzhen, China

    Wed, Sep 15 2010

    Mr. Nayak,
    You seem to be an intelligent person.
    Most of your comments may not be liked by almost all readers.But I appriciate your spirit.
    At least you have one Fan.
    However, I do not like readers giving Political connections to almost anything that happens.
    I work in the Navy. All compensations are paid as per the earning capacity of the person. This looks reasonable to me.

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  • Austin Santhosh, Haleangadi/Bahrain

    Wed, Sep 15 2010

    We have to remember that the compensation is given by not the Government or Air India, but by an Insurance firm. And the Insurance firm will have it's own limitations. It is natural that every one expect the maximum benefits. But please consult any of your friends who is in the Insurance Industry. They agree with the arguement put forward by Mr. Nanavati.

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  • Abdul Razak, Basrur/Manglore

    Wed, Sep 15 2010

    In this connection the releavent sections of THE CARRIAGE BY AIR (AMENDMENT)ACT 2009 NO.28 Of 2009 enacted by Parliament are reproduced here in sect.17(i)the carrier shall be liable for damges sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft or in the course of any of the operations of embarking or disembarking.sect21(i) for damages arising under sub-rule(1) of rule 17 not exceeding 1 lakh special Drawing Rights(US$140,000) for each passenger,the carrier shall not be able to exclude or limit its liability.(ii)The carrier shall not be liable for damages arising under sub-rule(1)of rule 17 to the extent that they exceed for each passenger 1lakh Special Drawing Rights if the carrier proves that-(a)such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants oragentsor(b)such damage was solely due to the negligence or other wrongful act or omission of the third party.Also reproduced herein a judgement recently passed by the Supreme Court"the High courts in totally refusing to grant any compensation for the loss of future earning is not a correct one.The subordinate courts must be liberal and not niggardly in determining the quantum of compensation-must value life and limb on a generous scale."It is advisable that the readers relate these to the statements made by : Representatives of Mulla & Mulla Associates and decide

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  • Mahima, Mangalore

    Wed, Sep 15 2010

    In awarding compensation to accident victims, courts always take the income of the victim into consideration. Some years ago, when my Father met with an accident while riding the scooter, the Court had decided the compensation taking into consideration, the salary he was earning at that time and the loss in future earnings caused to him as a result of the disability resulting from the accident.

    We have to realise that no amount of money will compensate for the loss of life of a dear one. Any compensation that is to be awarded therefore has to be based on the loss of income alone.

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  • DR, Udupi

    Wed, Sep 15 2010

    Mr.naya ur illeterate KT is educated good understanding person what he says right. I also victim fly member i agree with nanavati.If v go to court who will pay lawyers fee & other expences,till the judgement day no income for the fly. What u say Mr.Nayak.no one insisted people to buy ticet from AI it was passengers wish

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  • santhosh, mangalore

    Wed, Sep 15 2010

    when such an incident happends in u r fly.u will understand.remember there is one person watching u up.

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  • loboprem, Bangalore

    Wed, Sep 15 2010

    Mr Nana...there were people travelling and not cattle.
    Even if the Montreal Convention does not provide for an equal compensation, the Airline should provide a decent compensation to the victims families as it is resposible for the loss of lives
    If you cant compensate, then provide the lives back.

    Now the only option is to boycot the Airline.

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  • Jerry Moras, Canada

    Wed, Sep 15 2010

    Daniel, rail or road passengers don't pay insurance premiums for tkts. For sure govt or any party will not pay nor brokers are involved here. If insurance to be included then tkt fare will be increased. Now, it's upto public buy travel insurance or transport dept to decide how they would like to handle this. That is the reason govt officials announce 1 lakh for death and rs,. 25 K for injured. Hope that makes some sense. Hence, airline is risk industry and liability is non-negotiable. Consider a situation, if airlines claim for their loss based on their income how they would be reimbursed ?

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  • Wilma Peris, Mangalore, Muscat

    Wed, Sep 15 2010

    Mr. Nanavathi has said that compensation is to cover 'loss of livelihood' and not 'loss of life'. Can he explain the role of a mother and assess her worth even though she is not getting any monetary benefit for her services? Can he assess the love given by an infant/child to his/her parents even though they do not earn? Can he measure the pain suffered by the families of the deceased in terms of money?
    When the airlines have charged everyone equally, they should compensate equally. Let everyone get compensation according to the Montreal Convention.

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  • Tom Cat , Mangalore/ Saudi Arabia

    Wed, Sep 15 2010

    A lesson for for all do not travel by air India or Indian air lines.

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  • munzir, kerala

    Wed, Sep 15 2010

    so the insurance firm is saying that, the died persons salary must be considered..ooops so just think about an MP of india..his salary was suddenly increased....i think this must be not a hurdle..these insurance guys r always deceivers...so the premium amount must be also revised n taken as per each travellers salary...pathetic india..pathetic india....youngsters please raise against this..coz tomorrow this may happen to us also...

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  • Suni Fernandes, Kota/Dubai

    Wed, Sep 15 2010

    This insurence companies are like that only. When time comes for paying compansation they will open all clauses of hidden policy and proceedures. There should be uniformity in paying the compansation because all are paying the same ticket rate which contains same insurece cost for all. Also I cant understand the role of State and Central Govt who are paying immediate compansation to the victims family when ever accidents happens.. whcih is not their duty at all. Compansation should be not be paid from Govt's account. It should be paid by the respective insurence company. And Govt should force the Insurece copmay to pay compansation on time.

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  • Edward, India

    Wed, Sep 15 2010

    This is difficult to understand. A personal insurance policy taken by an individual in his/her individual capacity would be for a specified sum assured. But in this case it's a general policy and the standard should have been the same as all passengers hold budget carrier tickets. What has the Income of a person got to do with an general accident policy where each person pays the same fare and tax?
    The experts in the field could throw more light.

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  • Valerian Furtado, Mulki/Canada

    Wed, Sep 15 2010

    This is nonsense. As an equal fare paying customer everyone should get equal compensation.

    Since there are some passengers with higher income they should take their own private insurance cover. It's not Air India's or any public carriers business to discriminate.

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  • Felix F.,, India/Ksa

    Wed, Sep 15 2010

    It is correct “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,”. 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.

    Now, it is upto the victims families who think they are not getting a fair deal, to file a case against Air India for damages, for causing physical harm leading to death, due to their willful negligence to have compitent flying staff and also for operating an aircraft at unsafe airport, without proper security arrangements for aircrafts in distress.

    If they can prove this, Iam sure they can get more than the expected Rs.70,00,000.00, becuse of which the families of AIE victims supported the monumnet erected by A.I. who were good in shedding crocodile tears.

    DisAgree Agree Reply Report Abuse

  • Daniel, Mangalore

    Wed, Sep 15 2010

    To all readers who complain of discrimination in compensation
    The way adopted by Insurance Company is fair and in the interest of the public. I petty ignorance of the people who are opposing compensation being paid by Air India. Air India will not pay the compensation from their pockets as it pays the regular premium to insurance companies who take on this risk. So you cannot blame the airline for differences in compensation being offered. I request all the readers to press the government to implement the same type of compensation for rail and road accidents where scores of people lose their life and get pittance in compensation.

    DisAgree Agree Reply Report Abuse

  • Josephine, Mangalore

    Wed, Sep 15 2010

    "He reiterated that the compensation was meant to cover for the 'loss of livelihood' and not for the 'loss of lives.'"
    This sentence means that the death of the child & teenage victims will not be compensated as children and teeagers do not earn a livelihood!!!!

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  • KT, Mangalore

    Wed, Sep 15 2010

    Nagesh, thanks for the compliments. but I will not abuse people as million of DW readers reading it for knowledge as well as me. With your existing expertise I suggest you to write to Montréal convention treaty and help those people who are struggling to get compensation. I never mentioned religion in my comments but you are very quick to bring religion as well. This shows how we Indians links the issue….
    People will say now court is only was, tomorrow same will blame judiciary, then what……?

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  • Valerian Alva, padu belle

    Wed, Sep 15 2010

    Real rubbish from Air India Express, you cannot decide the compensation based on the salry.todays low earner might get high salary tomarrow.also remember that every passenger has paid almost equal price for the ticket.AIX has done the insurance based on number of passenger or for the total flight itselfhow come they can do the discrimination ?

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  • AK, Udupi

    Wed, Sep 15 2010

    If u die in road accident insurance is given based on deceased person income status, monterl convention law is nt only applicable for air india flights it applies to all countries whoever signed this documentry.i'm a realative of victim but nanavati has nt done any injustice to them.i agree with nanavati, nobody insists pasengers to buy ticket for air india it was their wish to buy there is no point on commenting on ticket status. its nt sucide attemt if pilot wanted he would have made plane to crash on middle of the way. I always agree with nanavati.always kanishk airline matter before going to court it took 25yr to give judgement and also Bhopal tragedy

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  • Jaimini P.B., Manipal,Sharjah

    Wed, Sep 15 2010

    Brilliant comments by Nagesh Nayak...worth reading,especially "During ticket Booing all are paying equal amount.." Insurance Firm,pls change your policy.

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  • Tom Cat , Mangalore/ Saudi Arabia

    Wed, Sep 15 2010

    Insurance underwriters are taking people for a ride court is only way.

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  • A.RAHMAN, MANGALORE

    Wed, Sep 15 2010

    Dear all Nananvathi is a big lier (person can easily judge by his face)from the bigining, from all corner he is covering Killer Airline AIR INDIA.After all he is feeded by our dirty airline.
    Only 4family accepted his offer and rest all declined even yesterdays meeting one of my colleague also refused his offer of INR 40 lakhs upon refusal amount increased to 47lakhs.If this law firm obeying any internation regulation then there will no question of bargaining.
    Even for me I required a respectfull FAIR judgement for My Loving WIFE AND SON's loss.Else let NANVATHI give his son, i will ready to adopt.

    Effected family members, NANVATHI is nothingto us. He is a Insurance BROKER no need to response any more.Let this case to be finalised in INTERNATIONAL COURT.

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  • Mathew , Mangalore/Muscat

    Wed, Sep 15 2010

    This is how the provisions of any law can be manipulated for the benefit of the interested parties! I was expecting this. The consultants who were in Mangalore in 5 star hotels recently were giving signals of the same. Now the matter is clear. When getting the insurance premium, the insurance companies are happy to receive. When it comes to pay out, they will ensure that anyhow they minimise the payout. This is anticipated!! Hope the families of victims have approached a good counsel.

    Is it that Air India recouping its loss at the cost of poor victims. I am not surprised looking at the approach of Air India to its passengers.

    Finally, my heart goes out to the families of the victims. May God bless them.

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  • Arshad Kadli, Bhatkal / Al Khobar

    Wed, Sep 15 2010

    Good that Montreal Convention does not apply to Railways. At least they give a respectable treatment.

    There should be only two catagories that is Adult Victims and Minors. No family would be joyful to receive the Compensation since it cannot substitute for loss of life.

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  • Naveen Shetty, Mangalore

    Wed, Sep 15 2010

    Most of the readers who protest against the discriminations in compensation for the air victims are wrong in their thinking. The compensation policy adopted by the airline is fair and in the interest of the public. People of India instead of protesting against this policy should press the government to implement the similar policy for the victims of other accidents mainly road, rail and industrial. There is more number of people dying on due to these reasons and they are not compensated fairly based on their earning potential. Imagine a situation doctor losing his life on the rail accident and getting a compensation of Rs. 5 lakhs from the government. Yes, the move to compensate the victims based on their earning capacity may increase the costs and may pinch a little more to the customer’s pocket, but this is surely in the interest of the public.

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  • Stephen Menezes, Shirthady/Dubai

    Wed, Sep 15 2010

    The airlines libility for each deceased passenger as per Montreal Convention is a two-tiered liability system. The first tier includes strict liability of up to $135,000 (U.S. dollars) regardless of an airline carrier's fault, which is also called 100 000 SDRs (special drawing rights, as defined by the International Monetary Fund. The second tier has no liability limit in cases where an airline is at fault.In the case Air India it has been proved that crash is due to pilot's error, pilot represents the airline hence pilot's negligence amounts to airlines negligence. As per the Convention $135,000 is to be paid to the surviving dependents regardless based on proof of death, however second tier compensation is based on earning capacity, age etc of the deceased passenger.

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  • Melwyn , Lady Hill, Dubai

    Wed, Sep 15 2010

    Mr. Mulla, Well done. You have taken a real effort in decoding the 'Act'. Our dear aviation minister was unaware of this 'Act' when he announced that compensation will be as per the law! Why does Air India not collect income details while booking of ticket? When everyone pays the same fare, why a discrimination on income for compensation. You are trying to save the bottomlines of the insurance companies. You might have received a huge compensation for poiting out this flaw in the 'Act'. I guess, that is why lawyers exist. Why don't you do me a favour by sparing the families of the victims this time. They have been through a turmoil. Please ease their mental strain.

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  • Kumar Fernandes, Mudarangadi/ Dubai

    Wed, Sep 15 2010

    Congratulation to you Mr Nelson,Karkala Riyadh, that at least one great person is supporting the insurance company. If Mr.Nanavati talk was sense full then you are totally senseless. Will you pls explain your theory of compensation based upon income of the deceased? Why some compensation shall be given those who are not earning? Why not as per IATA ? whether he/she is earning or not. Do the air line fly those who are not earning free of cost or for half of the cost? What is the IATA guide line/code for the accident claim. Pls think before you write

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  • nagesh nayak, bangalore

    Wed, Sep 15 2010

    HI, KT, MANGALORE, ARE YOU ILLETERATE? YOUR COMMENTS ARE WORST THAN A ILLETERATE'S COMMENTS.

    DURING TICKET BOOKING ALL ARE PAYING EQUAL AMOUNT IRRESPECTIVE OF DEPENDENT, PROFESSION, INCOME, CASTE, CREED & LANGUAGE.

    A PERSON WHO IS NOT HAVING ANY DEPENDENT WILL BE ALLOWED FREE AIR TRAVEL.

    DO NOT GIVE BLUNDER STATEMENTS.

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  • Kumar Fernandes, Mudarangadi/ Dubai

    Tue, Sep 14 2010

    Surprised to read the statement of Mr. Hosang D Nanavati, advocate and solicitor, the compensatation based upon the income of the passenger. Mr. Nanavati Whether the ticket fare is also being charged based upon the income of the passenger? In your statement you have quoted as “airline may challenge it, provided it can prove that the accident was not due to a wrongful act or negligence on its part” but Mr. Nanavati, as per the accident report and black box findings, the accident was the wrongful act (Not paying attention to co-Pilot’s instructions) and negligence of the chief Pilot.

    Do you have any more to challenge in regard to this? If so why didn’t you challenge the accident final report published in major news paper and also in Daiji? DO NOT APPLY SALT TO THE UNHEALED WOUNDs BY YOUR Lawyergeri talk & statement

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  • Rajesh, Barbados

    Thu, Sep 16 2010

    Its bit of confusing, Nanavati may be right as per their hidden schemes while enrolled in the insurance scheme and he is paid to do his job. But the criteria are not clear yet. If compensation is based on proof of loss basis!! What’s the loss here!! The income he/she was earning? What’s the case if a person cancels his employment and return home? What happens to the one who is expecting a change in job or change in position? Well insurance pooling is another gamble all of us know it and understand express flights are meant for labor class where as charges more than that of good private airline. If any of you afford to fly by another flight and not going for that option because you wanted to save time by taking a direct flight then you shouldn’t expect hospitality or at least a decent behavior from express because its pretty clear to them the flight is for the labor class and they just don’t deserve hospitality or any service as Shashi Tharoor rightly said and of course they don’t deserve compensation too. In India there is no value for a poor. Fundamental problem with India is the discrimination between the rich and the poor.

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  • Donald, Udupi/Bangalore

    Tue, Sep 14 2010

    THIS IS TOTALLY RUBBISH STATEMENT BY A EDUCATED PERSON....
    LET ME ELABORATE, IF THE COMPENSATION IS BASED ON THE INCOME OF THE PASSENGER THEN, HOW DO DEFINE A PERSON'S INCOME OVER THE PERIOD OF TIME IN HIS/HER LIFE??
    IN OTHER WORDS, TODAY A POOR PERSON MAY BE EARNIG A VERY LOW INCOME BUT TOMORROW HE MAY BECOME RICH BY HIS TALENT OR OTHERWISE. LIKEWISE TODAY A RICH PERSON MAY EARN A HUGE INCOME BUT TOMORROW HE MAY LOSE AND BECOME BANKRUPT.
    WE CAN'T DECIDE ANY ONE'S FATE.CAN WE?
    HENCE ACCORDING TO ME COMPENSATION SHOULD BE EQUAL SINCE A PERSON'S LIFE CAN CHANGE OVERNIGHT.

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  • wilson, mangalore

    Tue, Sep 14 2010

    It is not the death of any animal, to calculate the loss on individual basis. No body can fix the value for a human life. Dont be jealous in paying to low income people.

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  • KT, Mangalore

    Tue, Sep 14 2010

    Guys in the panel why you all don’t understand it’s not AI who is paying the money, it’s the insurance company is paying the money. We should thank government for signing the Montreal convention treaty which signed in 2009, if there was no treaty everyone would have got same as one gets during railway or other accident. Some one says government should intervene. Who is government? Are they above the law? From where the money comes for them? Guys should write and discuss which make sense, so that we get some knowledge. Its not fair to just writer something for the sake of writing. If one says everyone should be paid equal how it’s possible? At your work place everyone paid same? More qualification / experience always paid more? . This is an accident and no difference from motor vehicle act only extra is the treaty which comes in to effect. Now its the time to find out whether this act applies if one dies traveling in other airline or not. If any one knows please clarify.

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  • Sujith, Mangalore

    Tue, Sep 14 2010

    This is heights of Air India and the Compensating agents... You mean to say that compensation is been paid on the Income ... if this is the case you are having different set of air fares depending on the income is it. Have not all the passengers paid the same amount of air fare. No matter what is the amount going to the pockets of the Insurance agents or AIR India officals

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  • Cedric, Mangalore

    Tue, Sep 14 2010

    Mr.Nanvathi,
    What is the amount of KICK BACKS you got from Air India. On the day of the tradegy (22nd May 2010) Prafull Patel the avation minister had clearly stated in his press conference that as per Monteral convetion each victim is entitled for USD 65,000/=.All should join together and help the families of the victims to get the correct compensation. How did Air India claim the full compensation of the Aircraft. There was no fault of the Aircraft. It was the fault of the pilot. Report says that pilot was sleep. It should be pilot was DRUNK.

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  • Joe Gonsalves, Mangalore - U.S.A.

    Tue, Sep 14 2010

    I am glad that there are well meaning people like Mr. Nanavathi. Whatever compensation that is given to the relatives of the deceased should be relative and not arbitrary. It is logical to consider paying compensation to the next of kin on the bases of earnings of the victim, his age etc. A minimum of twenty years earnings of the victim may be taken as a rough basis.

    Hope The Government will intervene and ensure that the people who have gone through the agony are not deprived of their dues.

    Joe Gonsalves

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  • Lawrence Mascarenhas, USA

    Tue, Sep 14 2010

    According to Mullas if Laxmi Mittal died in a plane crash, his family will get billions in compensation and whereas a handicap child dies will get nothing. Very funny! Need intervention from learned counsel.

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  • Joel, Sydney/ Mangalore

    Tue, Sep 14 2010

    Mr KT, Mangalore i did not understand why there should be a difference when everyone has paid the same price for the airfare if a person whose income is more has to get more then has the Airline when booking the ticket told them tat this is your income and this is wat u pay and for low income earning this is your income and this is wat u pay.. So when there is no Difference in Taking there should not be ne difference in Giving as well.

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  • Suhail, Mangalore

    Tue, Sep 14 2010

    What has income to do with death, when a passenger buys a ticket he pays the same amount, the amount paid by rich tycoon or a Businessman, insurance is covered by the ticket amount and not on individual income or family income, this is ridicules. May be some of the poor passengers’ would have been a millionaire in future. No one is born Rich.

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  • Nelson Dsouza, Karkala/Riyadh

    Tue, Sep 14 2010

    Yes, I think Mr. Nanavati talks sense here. It may not please the family members of the deceased. But certainly we should agree with the criteria used to calculate right compensation based on the earning capacity of the deceased and how much damage it has caused on the dependants. I think it should also consider how long the deceased would have earned this income if he had not perished in this accident.

    For some families it may be difficult to prove that "the deceased" was earning high amount as they might not have used the legal channel of bank to send their money home. In this case, giving proof to the insurer is tough as the family should have bank statement of deceased, salary certificate from employer, Copy of income tax return filed if any etc. How about house wives? How they evaluate the grate loss to the husband and her children, even if she was not earning??

    I think at least some compensation should be given to the deceased family irrespective of the member was earning or not, but simply he was insured against the risk of flying. Otherwise no point in insuring the lives of so many flyers who don’t earn or work. The legal aspect should address this point also and don’t allow insurance companies to wash their hands just because there was "no proof of monetary loss"

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  • Jerry Moras, Canada

    Tue, Sep 14 2010

    Liability is same and equal for every one as low income person did not pay high tkt fare or person with no relatives travelled for free. Makes no sense. Evaluation of loss of life does not depend on income earned. What is proof of loss basis ? It's all use of words without any basis. Every one wants to CYA.

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  • Jerry Moras, Canada

    Tue, Sep 14 2010

    Concern : Is not Air India incident is wrongful act. It was not accident. It's a case of suicidal act by Air India employees or Pilot gone to sleep or pilot's error. Air India need to review claim's as per facts (black box evidences).

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  • Gurudath, M'lore/Mumbai

    Tue, Sep 14 2010

    These people just want to take us for a ride. Hope the government will help victims to secure maximum compensation.

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  • KT, Mangalore

    Tue, Sep 14 2010

    Hats off to Mr. Naanvathi. Compensation for loss of life is meant for dependents so that they are not economically impacted due to sudden demise of the earning member. The compensation amount hence relates to the earning capacity of the deceased and is specific to each individual. If the deceased has no dependents, there shouldn't be compensation and even for any near relations who have regular incomes. Thus compensation is meant to minimize the consequences of loss of life and is strictly not meant for any profits for anyone including the dependents,

    I think what they have done is not wrong. Even though everyone paid the same amount for travel, but liability of individual is based on his/her salary. So obviously the high earner should get more compensation then low earners

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Title: As Per Law, Air Crash Compensation Cannot be Equal - Insurance Firm



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