Key Points:
✔ 147 of 229 passenger families & 19 ground victims have received Rs 25 lakh interim compensation.
✔ Tata Sons promises Rs 1 crore ex-gratia per victim via a Rs 500-crore memorial trust.
✔ Total insurance claims could hit Rs 4,000 crore, making it one of India’s costliest aviation disasters.
AI 171 Crash: Interim Compensation Released to 147 Families; Tata Sons Pledges Additional Rs 1 Crore
In a significant step toward supporting grieving families, Air India has begun distributing interim compensation to the next of kin of victims from the devastating AI 171 crash on June 12. So far, 147 of the 229 deceased passengers’ families, along with 19 individuals killed on the ground, have received Rs 25 lakh each.
The airline confirmed that documentation for 52 additional families has been verified, with payouts expected soon. This interim relief will later be adjusted against the final compensation, which legal experts suggest could exceed Rs 1.5 crore per victim under the Montreal Convention—an international treaty governing airline liability.
A Historic Tragedy with Massive Financial Implications
The crash, which claimed 260 lives (229 passengers, 12 crew members, and 19 ground casualties), stands as India’s deadliest aviation disaster in 40 years. The financial fallout is equally staggering, with industry insiders estimating total claims at Rs 4,000 crore ($470 million). This includes:
- $80 million for the destroyed Boeing 787-8 aircraft.
- $45 million for the engines.
- $350 million in anticipated liability claims from victims’ families.
Tata Sons’ Humanitarian Gesture
Beyond Air India’s interim payout, Tata Sons—the airline’s parent company—has committed an additional Rs 1 crore per victim through the newly established AI-171 Memorial and Welfare Trust (Rs 500 crore fund). The trust will also:
- Rebuild BJ Medical College’s hostel, heavily damaged in the crash.
- Provide trauma support for first responders, medical teams, and relief workers.
Legal Complexities Ahead
With victims from Britain, Canada, and Portugal, multinational legal battles loom. Families may file claims in their home countries, India, or where tickets were purchased. While the Montreal Convention caps automatic payouts at ~Rs 1.5 crore, proving negligence could unlock higher settlements.
Air India assured that compensation remains a “top priority,” but the road ahead is long—both financially and emotionally—for those affected by this unprecedented tragedy.
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