The recent Air India crash near Ahmedabad is a moment of profound national sorrow. Amid the grief, there is growing public interest in understanding how legal and insurance frameworks apply in such tragedies.

Here is a breakdown of the systems that operate in the aftermath:

1. Montreal Convention and Carriage by Air Act
Airlines are legally liable to compensate the families of passengers who suffer death or injury. This compensation is not a flat amount. It varies based on factors such as nationality, age, occupation, and financial dependency. Claims are determined individually.

2. Tata Group’s Rs. 1 Crore Support
This support is an ex gratia payment made voluntarily. It is not a substitute for the legal compensation Air India owes under the Montreal Convention. In legal terms, “support” and “compensation” are separate obligations.

3. Hull Insurance
The aircraft is typically covered under hull insurance. In this case, the value may be between USD 200 to 300 million. Domestic insurers are reported to retain only a small portion of the risk. Around 5 percent is expected to be retained by GIC Re under India’s mandatory domestic reinsurance requirements. The remainder is reinsured internationally, with AIG London believed to be leading the program.

4. Passenger Liability Insurance
This insurance covers compensation for death, injury, or baggage loss. For international routes, policy limits are usually high, and in some cases exceed USD 500 million.

5. Personal Travel or Term Insurance
Some passengers may have held personal insurance. However, many travel policies contain exclusions for airline crashes unless specifically covered. The availability of benefits depends entirely on the wording of each policy.

This incident is a reminder of the complexity involved in resolving claims under multiple legal and insurance regimes. It also highlights the importance of precision in public discussions, especially when legal obligations and humanitarian support are both involved.

As a counsel working in aviation, insurance, and liability-related disputes, I believe legal clarity can support justice and dignity during moments of crisis.