The terrible crash of Air India Flight AI171 in Ahmedabad on June 12, 2025, killed 241 people and left one person in critical condition. Concerns regarding passenger and family compensation have surfaced as families struggle with this tragic loss. India has ratified the Montreal Convention 1999 (MC99), a foundational document of international aviation law, which regulates the compensation system for those affected by this catastrophe. This blog post explains the rights, procedures, and important factors related to passenger compensation as it relates to the Ahmedabad crash and MC99.
Air India AI171 Crash: 241 Dead in Ahmedabad Tragedy – Brief Overview
A Boeing 787-8 Dreamliner, Air India Flight AI171, was headed to London Gatwick on June 12, 2025, when it crashed shortly after takeoff into the Meghani Nagar residential area near Sardar Vallabhbhai Patel International Airport. After sending out a MAYDAY call, the plane, which was carrying 230 passengers and 12 crew members, lost communication with air traffic control and crashed into a heavily populated area. The crash caused serious damage on the ground, including to the doctors’ hostel at BJ Medical College, and claimed 241 lives, with only one survivor. Preliminary reports indicate a catastrophic technical failure, and the Aircraft Accident Investigation Bureau (AAIB) is investigating the cause.
What is MC99?
A worldwide agreement known as the Montreal Convention of 1999 (MC99) establishes uniform guidelines for airline accountability in the event of passenger death or injury, misplaced luggage, damaged cargo, or delayed flights on international routes. Through the Carriage by Air (Amendment) Act of 2009, India ratified this treaty and incorporated it into its legislation. Since Flight AI171 was an international flight from Ahmedabad to London, passengers and their families are entitled to compensation under MC99.
Compensation for Passengers under MC99
MC99 establishes a two-tier liability system for passenger death or injury, ensuring that victims’ families receive timely and adequate reimbursement. Here’s how it relates to the Ahmedabad crash:
Strict Liability up to 128,821 SDRs
Airlines are held strictly accountable for damages up to 128,821 Special Drawing Rights (SDRs) per passenger for death or bodily injury under Article 21(1) of MC99, regardless of fault. According to IMF exchange rates, 1 SDR was worth ₹111.50 or USD 1.32 as of June 2025, which converts to about ₹1.44 crore or USD 170,000 per passenger.
Air India must pay up to ₹1.44 crore per victim for the 241 passengers and crew who died, regardless of negligence. This applies to all passengers, including the 169 Indians, 53 British, one Canadian, and seven Portuguese nationals on board.
Article 28 also requires airlines to make advance payments to meet the immediate financial needs of victims’ families. Although MC99 does not specify the amount, Air India has announced an initial ex gratia payment of ₹10 lakh per deceased passenger, which may count towards this obligation. Families can expect these payments in the coming days or weeks, pending the identification of the victims.
Higher Compensation for Proven Negligence
For damages in excess of 128,821 SDRs, Article 21(2) allows families to seek additional compensation unless the airline can demonstrate that the incident was not caused by its negligence or was caused solely by a third party (for example, air traffic control or a manufacturing defect). Courts consider factors such as the victim’s age, income, earning potential, and dependents when determining additional compensation.
The investigation by the Aircraft Accident Investigation Bureau (AAIB) will be important. Families may be entitled to much larger sums if negligence on the part of Boeing (such as a design defect in the 787-8 Dreamliner) or Air India (such as maintenance errors) is proven. For example, when negligence was proven in previous Indian cases, such as the 1988 Indian Airlines Flight 113 crash near Ahmedabad, courts awarded up to ₹20 lakh per victim (adjusted for inflation to about ₹2 crore today). Families of British nationals may demand even larger sums based on UK economic standards, possibly surpassing ₹2–3 crore per victim, given the international nature of Flight AI171.
Compensation for the Sole Survivor
Under MC99, the lone survivor, who was seated in 11A and is in critical condition at the moment, is entitled to compensation for bodily injury. The amount is determined by the severity of the injuries, the cost of the treatment, and the long-term effects (such as disability or loss of earning capacity). In line with MC99’s demands for injury compensation, Air India’s parent company, Tata Group, has promised to pay for all medical costs.
Baggage and Personal Effects
Airlines are responsible for the loss, damage, or destruction of checked baggage if the incident happened while the baggage was under their control, according to Article 17(2) of the Montreal Convention (MC99), up to a maximum of 1,288 Special Drawing Rights (SDRs) per passenger. Both checked and unchecked baggage are subject to this cap. Currently, this equals about $1,700 USD per passenger.
Additional Compensation Announcements
- Tata Group’s Commitment: Tata Sons Chairman N. Chandrasekaran has announced that Air India will provide ₹1 crore to the families of each deceased passenger, as well as cover medical costs for the injured and rebuild damaged infrastructure (e.g., the BJ Medical College hostel). MC99’s liability cap (₹1.44 crore) and court-awarded sums may increase the total payout beyond the ₹1 crore baseline.
- Ground Victims: Only passengers and flight crew on foreign flights are covered by MC99. Residents killed or injured on the ground (in Meghani Nagar, for example) are covered by negotiated settlements or Indian tort law. In the 1988 Ahmedabad crash precedent, the Airports Authority of India (AAI) was held 10% liable, indicating that if airport operations are found to be at fault, AAI may help pay ground victim compensation.
Procedure for Claiming Compensation
- Identification of Victim: Due to the difficulty caused by severe burns, the Gujarat Health Department is assisting BJ Medical College with DNA testing in order to identify victims. As a requirement for filing claims for compensation, families are required to submit DNA samples to verify identities.
- Filing Claims: Families should file claims with Air India, supplying documentation of financial dependence as well as proof of relationship to the deceased (such as marriage or birth certificates). For amounts greater than 128,821 SDRs, legal representation may be required to prove negligence in court.
- Legal Action: In accordance with MC99 and the Carriage by Air Act, 1972, families may bring claims in Indian courts (or UK courts for British nationals) if they want higher compensation. The Gujarat High Court’s award of ₹6 crore to 34 claimants with 9% interest in the 1988 Ahmedabad crash case established a precedent for larger payouts.
Challenges
- Delayed Identification: The compensation process is being slowed down by the difficulty in identifying the victims due to the state of their remains. Families are expected to receive prompt financial assistance under the Montreal Convention to lessen their immediate burden.
- Negligence Check: The AAIB (Aircraft Accident Investigation Bureau) will investigate to determine whether families are eligible to receive more than the ₹1.44 crore cap. Some social media users (on X) are speculating that there may have been issues with the engine or landing gear, which could hold Boeing or Air India accountable and raise the amount that families receive.
- Public Reaction: The initial ₹5–10 lakh payments are being criticised as too low in numerous posts on X. This indicates that the public wants Air India and the government to communicate more clearly and transparently.
- Inequitable Compensation: Due to disparities in income and legal systems, families of British victims may receive greater compensation, which would be unfair to families from other nations.
Secure Justice & Compensation for Aviation Tragedy Victims – We’re Here to Help
Our team stands by the families affected by the Ahmedabad crash. Under the 1999 Montreal Convention, each bereaved family is entitled to a minimum compensation of ₹1.44 crore, with the opportunity to claim more if negligence is proven. Although Air India has pledged ₹1 crore per victim along with immediate aid and medical support, you may be eligible for additional legal compensation.
As the AAIB investigation unfolds and more facts come to light, the legal landscape for claims may shift. Now is the time to act.
✅ Consult with our aviation law experts
✅ Understand your full rights under international law
✅ Claim the compensation your family deserves
For any queries related to compensation, contact Office of Advocate to explore your legal options and receive dedicated support.
Our thoughts and prayers are with the victims and their loved ones. Check the websites of DGCA and Air India for the most recent information. Stay informed, and together, let’s honour the departed by ensuring their families receive the support they deserve.
Note: Compensation amounts are subject to change based on investigation outcomes and legal proceedings. For the latest details, visit Air India’s website or the DGCA website.